Solar sector subsidies plummet -Governance Now

Solar sector subsidies plummet

Installing solar water heaters has become costlier with the coming of new guidelines

Neha Sethi | June 18, 2010

The recently launched guidelines for the national solar mission have resulted in decreased subsidies for some schemes which are now under the Jawaharlal Nehru National Solar Mission, an official from the ministry of new and renewable energy told Governance Now.

“The government would want to reduce subsidies as soon as possible so that the demand for solar becomes market-driven,” he added.

The official said that in the case of rooftop solar installations, the subsidy was Rs 100 for every kilowatt of energy generated in a system operating without a battery. “Now the subsidy is 30 percent with a maximum of Rs 70 for every kilowatt of energy generated,” he said.

In case of a rooftop solar system with a battery, the subsidy is also 30 percent with a maximum of Rs 90 for every kilowatt of energy generated. “Previously, it was Rs 125 for every kilowatt generated,” the official added.

He said that installing solar water heaters has also become costlier. “The subsidies on solar water heaters for individual houses, institutions and commercial establishments have gone down,” he added. He said that the water heaters had an interest subsidy earlier, but under the mission, it now has a capital subsidy of Rs 3000 per square metre.

The official also said that the guidelines clearly specify that the subsidies would be 'reviewed annually'. "Which means that they will go down even further the next year," he added.

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