Subsidy on rooftop solar systems to come down

The grid connected solar rooftop systems are set to cost more. The Central government is highly likely to reduce the subsidy on the systems from the present 30 per cent to 15 per cent in the near future.

An information notice was circulated by the Union Ministry of New and Renewable Energy to this effect at the beginning of the year.

Further, the note advised all the State nodal agencies, departments, commercial establishments, channel partners, and system integrators to set up grid connected rooftop projects without waiting for the Central subsidy.

Limited availability of budget is cited as one of the reasons for the reduced subsidy. Besides, the subsidy is not required to draw entities which are already paying higher tariff for conventional power than the Central Electricity Regulatory Commission’s rate for solar power, the note reasoned out.

Under the grid connected rooftop solar power projects scheme, capacities of 1KW to 500KW each have been sanctioned by the MNRE across the country, so that the power generated from the systems may be set off against the consumption from the grid, under ‘Net Metering’ system.

Any excess power would be paid for by the respective discom.

A subsidy of 30 per cent has been offered by the Centre on capital cost, while the respective State governments are bearing 20 per cent. The rest is to be borne by the beneficiary.

So far, an aggregate capacity of 356 MW has been sanctioned by the ministry throughout the country, of which 40 MW has been installed, the note informed. In Telangana, the capacity sanctioned is about 1 MW, with only about 400 KW installed so far, officials informed.

The note also mentioned that priority would be given henceforth to educational institutions, hospitals, homes for the aged, orphanages and other such institutions, for sanction of the project.

Government community centres, panchayat buildings, and common workshops for artisans and craftsmen will be the next priority, followed by government buildings, establishments for common use, and residential buildings in that order.