The Government is taking many initiatives to promote Solar Power in the country including exemption from excise duties and concession on import duties on components and equipment required to set up a solar plant, a 10-year tax holiday for Solar Power Projects and Wheeling, banking and third party sales, buy back facilities by states.
Besides, guaranted market through solar power purchase obligation to states, GBI schemes for small projects connected to grid below 33 kV, reduced wheeling charges as compared to those for conventional energy and special incentives for exports from India in renewable Energy technology under renewable energy sector- specific SEZ are the other initiatives in this regard.
In the Budget 2015, Government has announced a target of adding 175 GW of renewable energy, including addition of 100 GW of solar power, by the year 2022. This was stated by Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in a written reply to a question in the Lok Sabha today. It is also being planned to increase the Renewable Purchase Obligations to the levels as envisaged under National Action Plan on Climate Change (NAPCC).
The Minister further stated that for grid connected Solar Rooftop, subsidy of 30% of the benchmark cost for general category States and 70% for special category states is being provided also under off grid Solar PV programme, subsidy of 30% of the benchmark cost for general category States and 70% for special category States is being provided for defined category and subjected to availability of funds, the Minister added.
These initiatives will surely transform the lives of urban and rural population.