Centre Clears Rs 5,000 Cr For Grid-connected Solar Rooftops

The Cabinet has increased the budget to Rs 5,000 crore for implementation of Grid Connected Rooftops systems over a period of five years upto 2019-20.

The Rs 4400 crore extra will provide an impetus for the installations of solar rooftops in the country while encouraging the same.

Under National Solar Mission (NSM), 4200 MW Solar Rooftop systems will be installed in the country in next five years.

The capital subsidy of 30 per cent will be provided for various States, excluding 70 per cent for North-Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir and Lakshadweep, Andaman and 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.

This capacity of 4200 Mega Watt peak (MWp) will come up through the residential, Government, Social and institutional sector (hospitals, educational institutions.

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.

The NDA-government has revised the target of National Solar Mission (NSM) from 20,000 MWp to 1 lakh 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.