Clean Power

Published on December 31st, 2015 | by Saurabh Mahapatra


India Plans $770 Million Subsidy For Rooftop Solar Power Projects By 2020

December 31st, 2015 by  

The Indian government is planning to significantly increase financial support for rooftop solar power projects in an attempt to meet the huge target of having 100 GW of solar power capacity operational by April 2022.

The Cabinet of Ministers recently approved a plan to increase subsidies for rooftop solar power projects from current Rs 600 crore (US$92 million) to Rs 5,000 crore (US$770 million). The subsidy will be available to households, government institutions, hospitals, and educational institutions, among others. The financial support will not be available to private sector entities like industries and commercial consumers.

India has set a target to have 100 GW solar power capacity installed by March-end 2022. This will include 40 GW rooftop solar power capacity. However, the government policy is lagging in terms of expanding rooftop solar power capacity. The Ministry of New & Renewable Energy has come out with a timeline for implementation of large-scale solar power projects through auctions; but the ministry has not issued any such timeline for implementation of rooftop solar power projects.

India’s solar power capacity stood at 4.68 GW on 30 November 2015, and of this figure, only 5.6% is in the form of distributed solar power capacity.

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About the Author

A young solar enthusiast from India keeping an eye on all regulatory, policy and market updates from one of the fastest emerging solar power markets in the world.

  • JamesWimberley

    What is the proposed mechanism? One major problem in India as in China is the slow and inefficient disbursement of cash subsidies for distributed solar. A subsidised FIT is a far superior mechanism administratively, as the subsidy is only paid to a small number of well-staffed electrical utilities, not millions of households.

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