State government has cleared the Kerala state electricity board’s proposal to adopt plans that would limit the subsidy benefits for rooftop solar power units to consumers using only up to 200 units of energy a month
February 03, 2020. By Darshana Daga
State government has cleared the Kerala state electricity board’s proposal to adopt plans that would limit the subsidy benefits for rooftop solar power units to consumers using only up to 200 units of energy a month.
The ministry of new and renewable energy (MNRE) has devised a Rs 11,814crore subsidy scheme for setting up 4,000MW of grid-connected solar roof top plants in the residential sector. The rollout of the proposed scheme is planned through state power utilities and is part of the central government’s target to achieve a cumulative capacity of 40,000MW from rooftop solar plants by 2022.
“From the national scheme, Kerala is set to receive assistance for 50MW capacity for 2019-20. KSEB can implement the project with indigenous schemes, provided the state government too agrees with it. Subsidy from the Centre would be passed on to eligible consumers interested in setting up rooftop solar plants in the size range of 2 to 3kWp. Though the allocation has been made for 2019-20, there would be an extension of the period for the project rollout, the nitty-gritties of which have recently been finalised,” said N S Pillai, KSEB chairman and managing director.
According to the scheme that got the state power department’s approval, benefit for consumers would be a financial subsidy ranging between 20 to 40 per cent of the total cost.
For a 2 kWp plant with a project cost of Rs 1,08,000, MNRE subsidy would be Rs 43,200. While the consumer would contribute Rs 22,000 towards the project, the agency that sets up the rooftop plant would chip in Rs 36,000. KSEB would invest Rs 6,800 in a plant that makes 40 per cent of its actual energy generation available for other consumers.
Depending on the capacity of the plant, there will be cascading changes in the subsidy benefits and investment. The life of a plant is expected to be 25 years.
Customer cost share would be 12 per cent, 20 per cent and 25 per cent, depending on the plant size and scope. The board would soon start the process of choosing the beneficiaries. Consumers having monthly energy consumption from 150 to 200 units would benefit from the scheme.
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