For almost 4 years, the investors in the home Solar systems have been reaping the benefits of subsidized rates and rebates brought into being by the Ministry of New and Renewable Energy (MNRE).These incentives have been aiding people in getting a hassle-free installation and helping them save their money. The subsidy has offered substantial savings depending on the size of the rooftop solar system and the location of installation.
The rate of subsidy being provided is up to 30% of benchmark cost/tender cost (whichever is lower) for general category states & Union Territories and up to 70% of the benchmark cost/tender cost (whichever is lower) for special category states/UTs, i.e. North Eastern States including, Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep, Andaman & Nicobar Islands.
The Government, on 30th December 2015, approved an increase in the Central Financial Assistance (CFA) from Rs. 600 cr. to Rs. 5,000 cr. for the implementation of “Grid Connected Rooftop and Small Solar Power Plants Programme” up to the financial year 2019-20.
However, the subsidies are likely to come to an end for education institutes, societies, hospitals, social trusts and religious institutions except for the residential consumers having the installation of maximum 5KWp as most of the residential consumers fall under this category. The tariff for these categories would be greater than Rs. 5 to Rs. 10 per unit.
The DisComs have submitted an online proposal, in MNRE’s SPIN portal in the month of January 2018. State wise tender would be floated at the central/DisCom level in the month of February 2018 and rates to be arrived by March 2018. The rates shall be applicable from 1st April 2018 to 31st March 2019. The cycle will be repeated every financial year.
The CFA shall not be applicable for the other categories i.e., residential installations beyond 5KWp, social, government, commercial and the industrial sectors as these sectors are high tariff paying consumers. The subsidy will be reduced to NIL in case of Institutional Buildings, Hospitals and Societies.
So before the subsidy and the rebates come to an end, it’s high time you should seize the opportunity of installing the home solar systems which can reduce your outlay by a huge amount.
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