Clean Power

Published on April 29th, 2016 | by Saurabh Mahapatra

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Indian State Of Gujarat Announces Subsidy For Rooftop Solar Power Systems

April 29th, 2016 by  

In an attempt to boost the relatively neglected rooftop solar power market, the western Indian state of Gujarat has announced attractive subsidies for homeowners looking to set up rooftop solar power systems.

The Gujarat Energy Developer Authority has announced Rs 10,000 (US$150) to Rs 20,000 (US$300) subsidy per kW of rooftop solar power system for homeowners. This financial support will be in addition to the 30% subsidy being offered by the Ministry of New and Renewable Energy at the central government level.

The Gujarat government plans to include 100,000 consumers under this program. Once this target is achieved, the government will review the program and decide its future.

Gujarat already has in place net metering regulations (pdf) that allow consumers to install rooftop solar power systems and inject electricity to the grid.

Gujarat has been the pioneer in the Indian solar power market. The state’s solar power program predates the central government’s National Solar Mission. The state was also among the first to successfully implement rooftop solar power systems tied with a feed-in tariff policy structure.

Gujarat is famous for the successful implementation of canal-top solar power projects. Several other states are now looking to emulate that program.

India plans to have an operational solar power capacity of 100 GW by March 2022, which includes 40 GW of capacity from rooftop projects. While the utility-scale projects have attracted investment from Indian and foreign developers, the government has not been as enthusiastic to promote rooftop solar power systems. Success in this sector is likely to depend on the pace of implementation of policies by the state governments.


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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.



  • Brunel

    They would be better off to switch to hybrid cars and then EVs.

    • Matt

      LOL, post to wrong page?

      • jeffhre

        They would be better off to switch to land lines then shift to cell phones./s

  • JamesWimberley

    I’ve read that a lot of subsidy programmes fail in India through red tape. If it’s only paid a year late after a battle with an indifferent bureaucracy, the programme is a waste of money. Ideally it needs to be a rebate at the point of sale.

    • Hridayesh Gupta

      Subsidies in India are created to increase opportunity for corruption. Most of the time work is done on paper and the money is pocketed by various agencies.

      It is easier to hide fake work in consumer level implementations as compared to a large projects.

      Recently India detected more than 10 million duplicate subsidized cooking gas connections. It is a big party at trough.

    • parag

      There is no doubt that many schemes fail in India.
      In India subsidy programmes(rebate at point of sale) is generally meant only for poor people.
      However rebate at point of sale is one of the most difficult programmes to keep corruption out of as the vendors/dealers may sell the subsidised item (meant for poor) to the rich in black market at higher prices (obviously below market price) thereby profiting from the government.
      However india has recently begun to change this structure to repayment as in case of gas subsidies for poor. Where you buy the gas from authorized government agencies at the market price and the government directly transfers money into your account. This reduces the middlemen and thereby the corruption.

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