The increasing popularity of solar power units in the commercial sector has forced the Centre to impose restrictions, including removal of the 30 per cent investment subsidy on allowing commercial establishments and industries setting up the units.
Earlier, the ministry of new and renewable energy had announced concessions and incentives to promote solar units as the Centre was of the view that this would help consumers in the domestic sector.
More than the domestic sector, commercial and industrial units availed of the subsidies given by the Centre. Domestic consumers were unable to benefit from the subsidies mainly due to lack of space.
TS New and Renewable Energy Development Corporation general manager C.S.V. Prasad said the Centre took the decision six months ago but orders were issued recently. The domestic sector and societies that run schools, hospitals etc. will continue to get 30 per cent investment subsidy.
In the recent power ministers conference, the TS government had requested the Centre to extend subsidised loans to government institutions to set up solar units. The renewable energy ministry said state-run institutions should set up solar units on their own.
After considering the working condition of the units, the Centre will give 25 per cent of the cost of the unit as incentive, but the building should be owned by the government or a government-run institution.
The Centre said that the CAG has emphasised that the solar projects must be completed as per schedule; in case of delay, the Central and state governments must review the status of public resources like land allotted to the solar power developers and take necessary corrective measures.