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India approves USD-1.66bn govt support for rooftop solar installs

Rooftop solar system in India. Author: Coshipi (clive.semmens.org.uk). Licensed under CC BY-SA via Flickr.

February 20 (Renewables Now) - The Indian Cabinet Committee on Economic Affairs has approved the second phase of the country’s programme for grid-connected rooftop solar capacity that will be implemented with INR 118.1 billion (USD 1.66bn/EUR 1.46bn) of central government subsidies.

The programme, approved on Tuesday, aims to bring the Asian country’s cumulative installed rooftop solar capacity to 40 GW by 2022. According to an official announcement, the central financial assistance in the Phase-II programme will be restructured for the residential sector, allowing 40% Central Financial Assistance (CFA) for rooftop systems of up to 3 kW. Installations between 3 kW and 10 kW, on the other hand, will be entitled to 20% funding.

Another 20% CFA will be available for group housing societies or residential welfare associations, while the support will be limited to projects of up to 500 kWp per housing unit. Subsidies in the residential category, meanwhile, will be provided based on benchmark cost or tender cost, whichever is lower, for 4 GW of capacity. Support will not be available for other project categories such as institutional, educational, social, government, commercial and industrial schemes.

In the second phase of the programme, the Indian government will also seek to increase the involvement of power distribution companies (discoms) by distributing performance-based incentives for the initial 18 GW to be added through the scheme.

(INR 10 = USD 0.140/EUR 0.124)

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Veselina Petrova is one of SeeNews Renewables most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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