On Grid Solar Power Plant subsidy

Gujarat State in India is a pioneer in installation of On Grid Rooftop Residential Solar Power Plant with nearly 1000 MW On Grid Solar Rooftop Systems installed on terrace of private residential and Apartment buildings under GEDA and Surya Gujarat subsidy scheme of Government of India and Government of Gujarat. Subsidy of 40% is available o upto 3 KW solar rooftop systems and subsidy of additional 20% from 4 KW to 10 KW systems. Flat 20% subsidy available for solar rooftop systems installed for Common meter connections of Residential apartment and Group Housing Societies.

Income Tax Depreciation of 40% available for Grid Connected Solar Rooftop systems installed on commercial or industrial buildings. Government of Gujarat has announced next phase of Solar Power Policy 2021 after successful implementation of solar power policy 2015.

Gujarat government has denied MSME interest subsidy  and Capital Subsidy for Small Scale Distributed Solar Power Projects (SSDSP) scheme announced in Solar Power Policy 2021 for investment made by investors for 500 KW to 4 MW solar power plants. Many investors had done Power Purchase Agreement (PPA) with state DISCOMs for sale of Power to DISCOM @ Rs. 2.83 per KWh for PPA done upto March 2021. But now, Government of Gujarat is on back foot by denying sanction of subsidy for MW scale solar power plants installed under SSDSP scheme. Private investors will be refunded Fees and Deposit amount paid by them to PGVCL (DISCOM) and GEDA. This type of Decision by Government of Gujarat has left many investors in Financial Tragedy as many investors have applied for NA (Non Agriculture) of Project Land where Solar Power Plant is to be installed and some investors had give Work Orders for Solar PV modules. These type of investors are staring at huge Financial Loss due to absurd decision of Government of Gujarat for MSME subsidy.

Direct deduction of subsidy to Grid connected Solar Rooftop Residential customers is direct burden on Government Treasury. Instead, Government can plan to give phase wise financial incentive in monthly Electricity bill provided to consumers by DISCOMs. This can lessen burden on Government Treasury. This can also help Government to run Subsidy scheme for longer duration of time.

On 75th Independence Day of India, let’s pledge to become Energy Independent by adopting Solar Power Plant and also installing Solar Water Heaters at residential premises as India is blessed with abundant Solar Sunny days.

Happy Energy Independent India.

Jai Hind

Salute to Veer Sardar Patel, Chandrashekhar Azad, Bhagat Singh and ALL Leaders who sacrificed their LIFE for our Independence.


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