- Gujarat will offer 10,000 INR per kW to private residential consumers of grid-connected solar rooftops
- Subsidy will be granted post successful installation and commissioning of the system
- The Central Government already offers 30% subsidy; Gujarat is offering additional subsidy
- Scheme will remain in effect until it reaches 100,000 consumers; later the government will review the same
The Indian state of Gujarat has decided to offer additional subsidy to consumers who plan to install solar rooftop panels. This is over and above the benefits offered by the Central Government for the same scheme. The latter offers 30% in central financial assistance (CFA) for grid connected rooftops and small solar power plants.
Private residential consumers will be eligible for a subsidy of 10,000 INR per kW ($150) after successful installation and commissioning of rooftop solar systems. The subsidy will come from the nodal agency, Gujarat Energy Development Agency (GEDA). The maximum limit per consumer be at 20,000 INR per kW ($300). The scheme will be limited up to 2 kW per rooftop solar system. The policy will be in effect until the target of 100,000 consumers is reached, post which the government will review the same and decide if it wishes to continue, discontinue or modify the scheme.
As part of the state’s Solar Power Policy-2015, the scheme does not apply to industrial, commercial and other consumers. The solar rooftop scheme was made official on March 31, 2016, however, it also accepts solar rooftop consumers that registered under the Solar Power Policy-2015.
Gujarat was one of the first states in India to promote the use of solar energy, thanks to Indian premier Narendra Modi, who was Chief Minister of the state prior to becoming the head of the country.
India has set a target of 100 GW installed solar power by 2022, and Gujarat is expected to contribute 8,024 MW, which includes 3,200 MW of grid-connected rooftop solar projects. As of March 7, 2016, Gujarat had an installed solar power capacity of 1,024 MW, equal to around 18% of the country’s total 5,775 MW.