The Indian Ministry of New and Renewable Energy (MNRE) provides a subsidy of 15% of the benchmark cost involved in rooftop solar installations for the social sector, government, residences and institutions. This list does not cover commercial and industrial rooftops.
MNRE had allocated 40GW as part of India’s ambitious 100GW by 2022 solar power target and has already started implementing its ‘Grid-Connected Rooftop and Small Solar Power Plants Programme’ for solar projects that fall in the 1-500kW capacity range.
Source: The Hindu
While MNRE’s huge rooftop energy target prevents it from providing central financial assistance to all solar rooftop projects, the projects that are eligible for the assistance will receive it from several government bodies such as State Departments, State Nodal Agencies, the Indian Renewable Energy Agency (IREDA), the Solar Energy Corporation of India (SECI), empanelled government agencies and PSUs of central and state governments. Additionally, these plants are subject to the ‘Domestic Content Requirement’ guidelines drafted for Indian modules.
Among the several benefits available to plants in the 1-500kW range are 10-year tax holidays, excise duty exemptions, custom duty concessions, accelerated depreciation benefits for commercial buildings, loans up to INR 150 million for renewable energy projects and up to 1 million for individuals under the priority sector lending requirements. Also part of the deal are loans for system aggregators at a concessional interest rate of 9.9-10.75%.
Interestingly, MNRE has also sent out proposals to several NGOs and entrepreneurs for the implementation of pilot renewable energy projects, an area whose development it is closely judged on. These include innovative solar technologies for pumping, heating, lighting and drying in the rural areas of some Indian states, which also form part of the ministry’s ‘Scale Up of Access to Clean Energy for Rural Productive Uses’ programme.
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