Govt to give customs, excise duty benefits to boost solar rooftop sector


In a boost to India’s lagging solar rooftop sector, the Union ministry of new and renewable energy (MNRE) has decided to give custom and excise duty benefits to it for ensuring high growth.

The move will not only bring down the costs of setting up projects but also that of generation.

Solar power developers setting up grid-connected solar PV (photovoltaic) projects have been seeking “grant of duty benefits” (custom and excise duty) from the MNRE for installation of rooftop systems.

India has set up an ambitious 100 GW solar power target by 2022. Of the 100 GW, 60 GW is planned through large- and medium-scale grid-connected solar power projects while 40 GW is planned from the solar PV (photovoltaic) rooftop system. But the sector has not seen great growth and the target of 40 GW by 2022 remains a mammoth task. As per reports, India’s rooftop solar capacity till 2016-end was about 1GW only.

Experts welcomed the custom and excise duty benefits for the solar sector.

India has given a huge thrust to the solar rooftop sector as it does not require pooling of land or separate transmission facilities and has minimal technical losses, unlike ground-mounted solar projects.

The solar rooftop sector also benefits power distribution companies in various ways. For instance, rooftop projects enable these companies to meet their renewable purchase obligations, help them in managing daytime peak loads which are projected to become more widespread as India’s economy grows and in localised generation of power that ultimately helps them in avoiding costly power.

States leading in providing solar rooftop power are Tamil Nadu, Gujarat and Punjab.

By Baishakhi Dutta


Please enter your comment!
Please enter your name here