Investment opportunities for Solar in India
The Government of India is providing various incentives and duty concessions for both manufacturers and users of solar products such as:
- To help in running of solar projects, the GOI will provide, through IREDA, a generation-based incentive for solar power of up to INR 12 per kWh for solar photovoltaic power and INR 10 per kWh for solar thermal power that is fed into the grid, after considering the tariff provided by the SERC or the utility.
- Capital subsidy available in case of semiconductor based units.
- Provisions for Accelerated depreciation available for solar manufacturers.
- NIL excise duty for manufacturers.
- Low import tariff for several raw materials and components.
- Soft loans to users, intermediaries and manufacturers.
Following the Central Government’s guidelines, a number of states are also pursuing solar energy development aggressively with good response from industry and have come out with their incentives. These include an enhanced feed-in-tariff rate when electricity is sold to the grid.
Incentives are also provided for Roof Top solar Systems, targeting a capacity addition of 4.25 MW during the rest of 11th Plan. These are:
- INR 75 per watt of SPV panels to a maximum of 30 percent of the cost of systems to profit making bodies that can also avail accelerated depreciation benefits.
- INR 100 per watt to a maximum of 40 percent of the cost of systems to non-profit making bodies.
- Systems could be with or without grid interaction; and support will be available for systems whose capacity varies between 25 to 100 kW.
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