Solar rooftop subsidy only for 4 segments

Union Ministry of New and Renewable Energy (MNRE) has indicated that its subsidy or central financial assistance (CFA) for solar rooftop projects will be provided only to projects under four categories, and industrial and commercial categories will be excluded from this programme.

CFA of 15 per cent of the benchmark cost will be provided to solar rooftop projects built under residential, institutional (schools, educational institutions, medical colleges and hospitals and R & D institutions – both public and private), government (both central and state government organsiations as also all Panchayati Raj buildings) and social sectors (old age homes, orphanages, common service centres and welfare homes, etc), according to a information notice of MNRE.

The 15 per cent subsidy will be provided through state nodal agencies, Solar Energy Corporation of India, IREDA, empanelled government agencies, public sector undertakings of the Central and state governments and participating banks.

Also, domestic content requirement (for modules made in India) will be applicable to only those installations where the subsidy is provided.

Private, commercial and industrial buildings rooftops will not be covered under the subsidy unless the solar system is owned by a government organization.

Mean while, MNRE has also announced that besides subsidy there are several other sops being given to rooftop and small solar capacity schemes. Those include custom duty concessions, 10 years tax holiday, provision for loans and also loans upto Rs.10 lakh for individual loans under priority sector lending.

The subsidies and sops are being provided as part of government’s Grid connected rooftop and small solar power plants programme, under which solar rooftop units from 1 kWp to 55 kWp are being promoted.

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Printable version | Oct 21, 2021 6:35:54 PM |

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