As part of its continuing efforts to boost solar power generation in the country, the Department of Financial Services, Union Ministry of Finance, has issued instructions to public sector banks to encourage clients seeking either home loans or home improvement loans to install rooftop solar photo voltaic plants and to include the cost of the system in their loan proposals.
This was stated in a Press Information Bureau (PIB) report, which also said that the Union Ministry for New and Renewable Energy was in the process of implementing a ‘grid-connected rooftop and small solar power plants programme’ to encourage installation of rooftop systems for solar power generation.
17 States
The PIB report said that 17 States in the country had already notified regulatory framework on net metering or feed-in tariff to encourage rooftop solar-power generation systems.
The Union Ministry for New and Renewable Energy has announced that the subsidy on rooftop solar power generation system was being reduced to 15 per cent from the previous 30 per cent in keeping with the falling price of solar power panels.
There is also a paucity of funds for subsidy, the Ministry said.
However, provisions for concessional import duty, excise duty exemption, accelerated depreciation, and tax holiday for setting up grid-linked solar power facility would continue.
Meanwhile, the ministry has come out with a list of banks and financial institutions that have committed as much as Rs.3,52,640 crore for generating 70,505 MW of green energy up to 2021-22.
Among the public sector banks is the State Bank of India (SBI), which has committed Rs.75,000 crore for producing 15,000 MW of green power.
The ICICI Bank has committed Rs.37,500 crore for 7,500 MW.
The State Bank of Travancore (SBT) has committed Rs.1,250 crore for generating 250 MW.
The investment commitments were made during the recent RE-INVEST 2015, renewable energy global investor meet and expo in Delhi.
Union Ministry for New and Renewable Energy is in the process of implementing a
grid-connected rooftop and small solar power plants programme
