Solar Rooftop Subsidy Scheme

  • Solar Rooftop Subsidy Scheme is a Government of India initiative to promote use of solar rooftops in the country. The scheme which encourages the use of renewable energy in the country provides subsidy on solar rooftop installations to the consumers.
  • Subsidy Under Solar Rooftop Scheme
  • Under the Solar rooftop subsidy scheme, the central government is providing subsidy of 30% for the general category states and union territories. Special category North-Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands are being given 70% subsidy for the same.
  • The subsidy is available for solar rooftop installation for residential, Government, social and institutional sector (hospitals, educational institutions etc.) Industrial and commercial sector would not get any subsidy under the scheme.
  • The central government, in December last year has increased the budget from Rs. 600 crore to Rs. 5,000 crore for implementation of Grid Connected Solar Rooftop systems over a period of 5 years upto 2019-20 under National Solar Mission (NSM). The increased budget is enough to support the installation of 4200 MW Solar Rooftop systems in the country in next five years.
  • Solar rooftops installed in households, industrial, institutional, and commercial buildings can be used to partly fulfilled the energy needs in other occupants in the building. Further, is there is any surplus, it can be fed into the grid using the grid tie technology.
  • Solar power generation cost at about Rs.6.50/kWh is way less than any other mean such as diesel generator or most DISCOMs in the country. The implementation of the scheme also helps towards protecting the climate as a result of abatement of about 60 million tonnes of CO2 per year.

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