India sets aside USD 753m for rooftop solar subsidies to 2020
Rooftop solar system in India. Author: Coshipi. License: Creative Commons, Attribution-ShareAlike 2.0 Generic
India’s budget for subsidising grid-connected rooftop solar systems over the next five years has been increased to INR 50 billion (USD 753m/EUR 689m) from INR 6 billion previously by the Cabinet Committee on Economic Affairs.
That amount will support 4.2 GW of rooftop solar installations under the National Solar Mission (NSM) up to fiscal year 2019/20, says a press release by the government. A capital subsidy of 30% is provided for general category states, while special category states can take up to 70%. The special category states list includes disadvantaged states in the north-east.
The subsidies under the budget will be available for residential projects and for rooftop installations on government, social and institutional buildings. Commercial and industrial projects in the private sector are not eligible for these subsidies, but they can take advantage of other incentives such as accelerated depreciation and excise duty exemptions, among others.
The increase in budget comes to support India’s goal of having 40 GWp of rooftop solar capacity in 2022.