Standard Post with Image

Government Invites Residential and Social Sector with Open hands to go for Solar Installations. Will Subsidy Rejunevate Domestic Interest in Solar Installations ?

News

The Union Cabinet is likely to take a call tomorrow on increasing the fund allocation to Rs 5,000 crore for the programme to promote grid connected rooftop and small solar projects. The government is providing financial assistance of 15 per cent of the benchmark cost for installation of grid connected rooftop solar system/project on four categories of building -- residential, institutional, government and social sectort

Source : Economic Times

SNP Insights

Governmet has been cotinuously promting use solar of energy through various schemes like providing financial assistance to grid connected rooftop and small solar projects. Installations in social segment halted due to lack of funds and govt's inability to disburse subsidy to eligible consumers. This downsided interest of residential, institutional, government and social consumers to eye on solar installation. Solar installation being capital intensive requires a financial support in form of govt subsidy, keeping it into track govt had revived 15% subsidy scheme on capital cost of solar system and reallocated funds to 5000 Crore from 600 Crore. This  government effort will certainly attract domestic, agricultural and organizations to become energy self-dependent and strengthen energy security of India.  

Source: SNP Infra Research