2015 Solar Subsidy in India
The Ministry of New and Renewable Energy (MNRE) is the nodal Ministry of the Government of India for all matters relating to new and renewable energy. The broad aim of the Ministry is to develop and deploy new and renewable energy for supplementing the energy requirements of the country. By 2022, the Ministry has a target of increasing renewable energy generation capacity in India by 5 times to 1,75,000 MW. Therefore, in a effort to exceed targets and create an India powered by clean energy, the MNRE Ministry provides various subsides for setting up solar power projects. In this article, we review the major solar subsidy in India provided by the Ministry of New and Renewable Energy (MNRE).
Jawaharlal Nehru National Solar Mission
The objective of the Jawaharlal Nehru National Solar Mission (JNNSM) under the brand ‘Solar India’ is to establish India as a global leader in solar energy, by creating the policy conditions for its diffusion across the country as quickly as possible. In order to facilitate grid connected solar power generation in the first phase, a mechanism of “bundling” relatively expensive solar power with power from the unallocated quota of the Government of India (Ministry of Power) generated at NTPC coal based stations, which is relatively cheaper, has been proposed by the Mission. This “bundled power” would be sold to the Distribution Utilities at the Central Electricity Regulatory Commission (CERC) determined prices which are subsidised.
To be eligible for the scheme the project capacity must be at least 5 MW in case of Solar PV Projects and the maximum capacity of the Project can be up to 20 MW. A Company, including its Parent, Affiliate or Ultimate Parent-or any Group Company may submit application for a maximum of three projects at different locations subject to a maximum aggregate capacity of 50 MW.
Scheme for Large Scale Grid Connected Roof Top Solar Power Generation
Acute power shortages in India are making most of the commercial and office establishments to have diesel generator backup. By setting up the grid interactive solar power plants on the rooftops would help reduce the
consumption of fossil fuels during the day time when grid power is not available. If the grid power is continuous, the solar power generated will be utilized along with the grid power and the power generator would be compensated for the exported power as per policy by the State.
All buildings of the Government, PSUs, commercial establishments, hospitals, cold storages, warehouses, industries and educational institutions are eligible under this Scheme. Solar power generation with project size between 100 kW to 500 kW is eligible. The building owner in which the solar roof top system is setup would be required to meet 70% of the project cost in lieu of benefit of electricity at free of cost. MNRE provides subsidy of 30% of the system cost to the developer to whom the project has been allocated.
2015 Solar Subsidy in India
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