FINANCIAL ASSISTANCE FOR ROOFTOP SOLAR PROJECT FROM MNRE

MNRE provides Central finance assistance (CFA) of 30 per cent of the benchmark cost for grid-connected rooftop projects. (The benchmark cost for 2019-20 for systems up to 10 kWp is INR 54,000 per kW; for >10–100 kWp it is INR 48,000 per kW; and for >100–500 kWp is 45,000 per kW.) CFA is only available for systems in the residential, institutional and social sectors installed for personal consumption. For special category states and UTs, i.e., Northeastern states, Sikkim, Uttarakhand, Himachal Pradesh, J&K, Lakshadweep and Andaman & Nicobar Islands, CFA of 70 per cent of the benchmark cost is available.

In addition to CFA, some states also provide additional benefits to consumers who install solar rooftop systems. In Delhi, consumers receive a generation-based incentive of INR 2 per unit (kWh) on gross solar energy generated in a year. In Gujarat, a subsidy of INR 10,000 per kW is provided to household consumers (with a maximum limit of INR 20,000 per consumer) in addition to the 30 percent subsidy scheme of MNRE.

Although there is no CFA for commercial and industrial sectors, these installations are eligible for accelerated depreciation benefits. The Centre also provides other benefits  like custom duty concessions, excise duty exemptions, and soft loans from different banks.

Several major banks of India have made solar rooftop PV a part of their home loan and home improvement loan schemes. State governments also provide a wide range of state-specific incentives, which is provided in their state net and gross metering, or solar policies.