News

Cabinet approves Rs 5000 Cr to promote solar rooftops

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi has approved the scaling up of budget from Rs. 600 crore to Rs. 5,000 crore for implementation of grid connected rooftops systems over a period of five years up to 2019-20 under National Solar Mission (NSM). This is expected to support installation of 4,200 MW solar rooftop systems in the country in next five years.
The capital subsidy of 30 per cent will be provided for general category States/UTs and 70 per cent for special category States i.e., North-Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands. “There will be no subsidy for commercial and industrial establishments In the private sector since they are eligible for other benefits such as accelerated depreciation, custom duty concessions, excise duty exemptions and tax holiday etc,” an official statement said.
According to the Ministry of New and Renewable Energy (MNRE), the capacity of 4,200 MWp will come up through the residential, government, social and institutional sector (hospitals, educational institutions etc.). Industrial and commercial sector will be encouraged for installations without subsidy. This will create the market, build the confidence of the consumers and will enable the balance capacity through market mode to achieve the target of 40,000 MWp by 2022.
Earlier, the government had revised the target of National Solar Mission (NSM) from 20,000 MWp to 1,00,000 MWp by 2022. Out of the 40,000 MWp is to come through grid connected solar rooftop systems. “This approval will boost the installations in a big way and will act as a catalyst to achieve the goal of 40,000 MWp,” MNRE believes.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Most Popular

To Top