Govt increases subsidy for residential rooftop solar project
The central and state government has proposed to increase the subsidy benchmark for the financial assistance of the rooftop solar project to furnish the higher costs of solar panels.
According to a report by the Council on Energy, Environment and Water [CEEW] in November, over 25 crore households across India have the potential to deploy 637 GW of solar energy capacity on rooftops. Earlier, Rooftop solar projects also got a boost recently with the introduction of the distributed renewable energy segment in the latest renewable purchase obligations [RPO], issued in October.
Financial assistance for up to 3kW capacity has been raised to Rs 18,000 per kW for general states, as compared to Rs 14,588 per kW earlier, according to the sources of Ministry of New and Renewable Energy. For over 3kW and up to 10kW capacity, the assistance has been raised to Rs 9,000 per kW for general states from Rs 7,294 per kW.
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Read Also : GAIL Inaugurates Cyber Security Awareness Month (CSAM) 2025The revised capital subsidy by the New and Renewable Energy Ministry has subsequently led to an increase in the potential of solar systems to 32 GW, making it more accessible to consumers as per the report, India has installed 11 GW of rooftop solar capacity, of which only 2.7 GW is in the residential sector.
To achieve a 40-GW rooftop solar target by 2022, the central government had launched two phases of the grid-connected rooftop and small solar power plants programme with incentives and aids provided by central financial assistance. The new rates will apply to all future bids that will be closed after January 20 and claims submitted after January 5.
Read Also : Saatvik Green Energy Gets big Order for Solar PV ModulesThe government has set a target of 1 crore homes to solarize in 2024 and will announce a 5,000 crore budget for the rooftop solar installation, as per sources. Meanwhile, the subsidy is only available on Residential homes, not commercial and industrial sectors. Moreover, a solar subsidy is only available on Grid Connected Solar System [Without Battery System].
Both central and state offer subsidy schemes to people for installing solar rooftop systems. The central government pays a 30 percent subsidy for these systems to states in general categories. For special states like Uttarakhand, Sikkim, Himachal Pradesh, Jammu& Kashmir and Lakshadweep, a subsidy of up to 70 percent is given by the central government.
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