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Subsidy on Rooftop Solar Power Plants to be Reduced

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Sh. Piyush Goyal, Minister of state for Power, Coal & New and Renewable Energy (Independent Charge) has replied in the Rajya Sabha that the Ministry has proposed to reduce the subsidy on rooftop solar power plants to 15% from the present level of 30% due to decline in price of solar panels, large target set for rooftop solar power plant and limited availability of funds for subsidy. 


The Minister further stated that several steps are being taken by the Government which are as follows:

(i) The Ministry is implementing a ‘Grid Connected Rooftop and Small Solar Power Plants Programme’ that encourages the installation of solar rooftop systems across the country.

(ii) There are provisions of concessional import duty/excise duty exemption, accelerated depreciation and tax holiday for setting up of grid connected rooftop power plants.

(iii) Department of Financial services has instructed to all Public Sector Banks  to encourage home loan/ home improvement loan seekers to install rooftop solar PV plants and include cost of system in their home loan proposals.

(iv)   With constant effort of the Ministry, State Electricity Regulatory Commissions of seventeen States have notified regulatory framework on net-metering/feed-in-tariff to encourage rooftop solar plants.

(v)     Public awareness is being created through electronic & print media, workshops, seminars and capacity building programmes.

(vi)     Subsidy is being provided to make the scheme more attractive and online submission of proposals is being encouraged.

(vii)     Implementation is being done through State Nodal Agencies, Multi Government Agencies, Solar Energy Corporation of India, Distribution Companies etc. to ensure better reach across the country.


Policies & Regulations | News published on 13 / 03 / 2015 by Bharat Vasandani

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