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South Asia News

GOI to incentivise rooftop solar systems in India

Image credit: Future Power Technology

The Ministry of New and Renewable Energy of India is implementing Rooftop Solar Programme Phase II in an effort to promote rooftop solar (RTS) in the country, including in rural areas.

RTS capacity aggregating 4000 MW by 2022 is targeted for installation in the residential sector with the provision of subsidy. For individual households, subsidy upto 40 percent of the benchmark cost is provided for RTS plants upto 3 kW capacity and 20 percent for RTS plants of capacity beyond 3 kW and up to 10 kW, the Government said.

For Group Housing Societies/Residential Welfare Associations (GHS/RWA), the subsidy is limited to 20 percent of the benchmark cost for RTS plants of capacity up to 500 kW used for supply of power to common facilities, the Government added.

This information was provided by the Union Minister for Power and New and Renewable Energy of India, R.K. Singh said in a written reply.

Steps taken by the Government for the overall promotion of Grid Connected Rooftop Solar Systems in the country include launch of phase II of the rooftop solar programme under with Central Financial Assistance (CFA) for the residential sector and incentives in slabs for the Power Distribution Companies (DISCOMs) for the achievement of additional capacity over and above the installed capacity of the previous year.

Earlier under Phase-I of the programme, CFA assistance for residential/ institutional/social sectors and achievement-linked incentives for Government sectors was provided.

Assistance to states in development/ integration of online portal and aggregation of demands relating to rooftop solar projects.

Preparing model MoU, PPA, and Capex Agreement for expeditious implementation of RTS projects in the Government Sector. Ministry-wise expert PSUs were identified for handholding and providing support for the implementation of RTS projects in various Ministries/ Departments under erstwhile phase I of the programme.

Advising States to notify the net/gross metering regulations for RTS projects. At present, all 36 States/UTs/SERCs have notified such regulations and/or tariff orders.

SPIN-an online platform developed for expediting project approval, report submission, and monitoring progress of implementation of RTS projects.

Facilitation of concessional loans from World Bank and Asian Development Bank (ADB) through SBI and PNB respectively, for disbursal of loans to industrial and commercial sectors, where CFA/incentive is not being provided by the Ministry.

Othe steps include:

Renewable energy included under priority sector lending
Declaration of the trajectory of renewable Purchase Obligation (RPO) upto year 2022
Quality standards for deployment of solar photovoltaic system/ devises notified.
Innovative Business models for rooftop solar shared with the States
Information and public awareness activities through print and electronic media.

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  • July 27, 2021
Author Info - W.Media
Anuradha Nagar
Anuradha Nagar
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