Gone are the days when solar power needed a lot of government support for making it economical. The sharply decelerated rates of solar power usually give a payback in 4-5 years and now this subsidy scheme helps in recovering the cost incurred even at a faster pace.
The Ministry of New and Renewable Energy has come up with a revised scheme of subsidy. The revised scheme is about 30% subsidy on solar back on the table for residential , institutional, government and social sector consumers only.
Let us have a look at the timeline of subsidy schemes on solar power proposed and implemented by our government.
Solar Subsidy Timeline –
• The first subsidy scheme proposed by the government was the biggest breakthrough in the solar energy scenario in india. The first move by the government said that 30% subsidy could be availed on solar power installations by all types of consumers which included commercial,residential, industrial, etc .
• In its next move, MNRE kept the 30% subsidy intact for the all customers excluding the commercial and the industrial consumers. This move was to help the consumers of domestic,govt.and social sector in putting up the solar power plants
• The next updated MNRE subsidy scheme released on 3rd August reduced the subsidy to 15% . There was no change in the non subsidy availing right of industrial and commercial consumers though. The 15% subsidy scheme was only for consumers other than industrial and commercial.
• 19th November 2015- In its most surprising move,the MNRE on 19th November’15 has announced that 30% subsidy is back again. The latest subsidy scheme states that 30% subsidy can be availed by residential , institutional, government and social sector consumers only. While commercial and industrial customers who already have benefits like accelerated depreciation, etc, cannot avail subsidy.
This notification aims to promote solar power in the regions like Sikkim, Uttarakhand , Himachal Pradesh, J&K,Lakshwadeep and A&N islands where the subsidy has been raised to 70% of the benchmark cost of the solar power plant for residential , institutional, government and social sector consumers only.
Central Financial Assistance(CFA) can be availed for plants of the capacity ranging from 1Kwp to 500Kwp. For plants of capacity 500Kwp and above, no CFA can be availed.
BENEFITS for consumers:-
• 100% AD for industrial and commercial consumers
• 10 year tax holiday
• Provision of bank loans as a part of home loans/home improvement loans
• Custom and excise duty exemption
In short we can say that 30% subsidy scheme is an icing on the cake for solar power. So all the dear readers who are waiting for the prices to fall down, don’t you think a green and clean energy source with so many benefits should be adopted right now?