India’s energy demand has
been growing rapidly as a result of the industrial growth as well as the rise
in household energy consumption. India ranks 6th in the world
in terms of energy demand accounting for 3.5% of the total world commercial
energy demand in 2001 (Planning Commission of India). Most of the energy requirements in India
are being fulfilled by fossil fuels that further increase our dependency on
imports. To overcome the issue of energy security, Government of India is
supporting increasing involvement of renewable energy sources in the total
energy mix.
As per the latest
announcement, there are a number of financial incentives and subsidies by the
Ministry of New & Renewable Energy (MNRE). These incentives and subsidies
are applicable for a number of renewable energy products available in the
market.
The
scheme provides partial subsidy and interest bearing loan to the project
developer. Various off-grid solar PV systems up to a maximum capacity of 100
kWp (Kilowatt peak) per site are eligible for being covered under the scheme.
The entire funding under this scheme is based on project basis. A detailed
project report including client details, technical & financial details,
O&M and monitoring arrangements has to be submitted to the ministry.
Under
the project financial criteria, it has to be funded through a mix of debt and
incentives where the promoters’ equity contribution would be at least 20%. If
the project promoter follow all these applicability conditions, MNRE would provide financial support
through a combination of 30 % subsidy and/or 5% interest bearing loans to the
eligible project.
By
March 2013, the benchmark price for photovoltaic systems with battery back-up
support was Rs.200/- per Wp and Rs. 130/- per Wp for without storage battery.
For this financial year i.e. 2013-14, the benchmark price for PV systems with
battery back-up support was Rs.170/- per Wp and Rs. 90/- per Wp for without storage battery. These rates are for off
grid solar power plant of total installed capacity from 10 KWp -100 KWp.
For more information visit our website: http://www.tgpsolar.com
