NEW DELHI: To give a fillip to the rooftop solar programme, the Cabinet Committee on Economic Affairs on Wednesday scaled up the budget for grid-connected rooftops to Rs 5,000 crore from the existing Rs 600 crore. This will be utilised over the next five years (up to 2019-20) under the National Solar Mission (NSM) and support installation of 4,200 MW of rooftop solar power systems.
According to the official statement, the capacity of 4,200 MW will come up through residential, government, social and institutional sector and aim to create a market for rooftop solar systems, build the confidence of consumers and enable balance capacity through market mode to achieve the target of 40,000 MW by 2022.
A capital subsidy of 30 per cent will be provided for general category States and Union territories and 70 per cent for special category states including North-Eastern States of Sikkim, Uttarakhand, Himachal Pradesh, Jammu and Kashmir and Lakshadweep, Andaman and Nicobar Islands under the NSM. Such systems can generate power at about Rs 6.50 per unit, which is cheaper than the diesel-based electricity generation.
There will, however, be no subsidy for commercial and industrial establishments in the private sector since they are eligible for other benefits such as accelerated depreciation, custom duty concessions, excise duty exemptions and tax holiday.