Considering the potential of PV Solar for a power deficit and Solar-rich country like India the Government has announced various subsidies and incentives in order to make the project viable. However a PV Solar Power Project can become viable even in the absence of subsidies (Can a Solar Project become financially viable without subsidies / incentives?). Mainly for Industrial Plants which are already facing a high power price (which directly impacts the cost of production) with majority of the plants opting for a D.G. Set for regular use.
Jawaharlal Nehru National Solar Mission (JNNSM) announced in 2009 is one of the 8 missions part of National Action Plan for Climate Change (NAPCC). Interestingly in 2009 the cost of generation from PV Solar was significantly higher (nearly twice of what it is today). Moreover the same was also very high as compared to grid power price. In 2012 nearly all the States in India have significantly hiked the power price ranging from 4% to 15%. It is anyone's guess that Solar Power will play a significant role in the Power Scenario of India.
(Suggested Reading - Is Solar the answer to India's Power Problems?)
Additionally in the present context owing to rise in deficit in electrical power, unreliable power supply in major parts of the Country, issues in Coal supply (recently some of the TPPs had critically low coal stock of less than a week) there is a rising interest in Solar Power. This interest is boosted by the fact that power generation from Solar enjoys several financial benefits - which no other technology enjoys in India.
|One of our recently executed PV Solar Projects in Mumbai under MNRE 30% Subsidy Scheme|
The incentives and subsidies for a PV Solar Power Project are of various kinds and depend on factors such as -
- Size of the Project.
- Location of the Project.
- Type of Project (Captive Consumption / Grid-Feed / Off-Grid etc.).
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- Project should not exceed 100 kWp installation (single location).
- Project could be off-grid or grid-synchronized.
- Power cannot be fed to the grid i.e. it has to be for captive consumption only.
- Battery backup is optional. The subsidy for projects with and without battery is different - MNRE adjusts subsidy amount for higher project cost due to battery.
- Project should be preferably executed by MNRE empanelled vendor.