Rooftop Solar PV System – Off grid policy

With the success of JNNSM policy for the projects of grid connected MW capacity and continuous declining movement of panel cost will make the rooftop systems economically more viable option. The Government’s policy will act as a catalyst for the same. Here the First Green is providing you a gist of the policy for off grid Roof top system (programme on “Off-grid and Decentralized Solar Applications”, 8th June 2012)

• Government of India (MNRE) provides 30% of capital subsidy on the roof top systems (off grid).
Based on the benchmark cost for solar photovoltaic panels (revised on 01/04/11 by MNRE) the available subsidy is of Rs 81/Wp with battery and Rs 57/Wp without battery storage system.
• Promoters’ equity contribution should be at least 20% of the project cost
• Rest of the amount can also be financed by MNRE by a soft loan @5% will be available.
• 80% accelerated depreciation benefit is available as per Section 32 of Income Tax Act.
• Rs 100/Wp for SPV modules used subject to a maximum of 40% of the cost of the system to non-profit making organizations only
• Support will be available for systems capacity varying between 25 to 100kW.
• Proposals in prescribed format will be considered on first-cum-first basis through SNAS by MNRE
• Capital subsidy would be released to the banks upfront, on receipt of sanction of loan by the bank to the borrower.
• The loan amount is repayable in monthly instalments within 5 years.

Boundary Conditions

The policy also defines maximum boundary conditions to avail subsidy and incentives for the projects under this programme on “Off-grid and Decentralized Solar Applications”

Individuals: Capital Subsidy & Soft Loan
• Pumps for irrigation and community drinking water – up to 5 kWp
• All except above – up to 1 kWp

Non Commercial Entities: Capital Subsidy & Soft Loan
• Mini grids for rural electrification – up to 250 kWp
• All except above – up to 100 kWp

Industrial / Commercial Entities: Capital Subsidy or Soft Loan
• Mini grids for rural electrification – up to 250 kWp
• All except above – up to 100 kWp

Source: MNRE


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