Financial aid to harness Solar Energy

Lok Sabha

The Ministry of New & Renewable Energy has been implementing schemes on solar cookers and solar powered lights for last many years to help people to replace/ save gas and kerosene oil. These include box and dish types solar cookers, solar lanterns and solar home lighting systems. Financial support between 25 to 50% on concentrating cookers and about 50 to 90% on home lighting systems depending on general/ special category states including North-East region has been made available to people under the schemes. A subsidy of Rs. 2400/- is also available for solar lanterns in un-electrified villages and hamlets of special category states and UTs/ Islands.

During the last three years, an amount of Rs. 2.47 crore has been spent on solar cookers and Rs. 192 crore on solar photovoltaic systems which includes solar lanterns and solar home lighting systems. In the current year, an amount of Rs.88.95 crore has been allocated for solar photovoltaic systems and demonstration programme on solar thermal systems including solar cookers. The schemes are mainly for rural areas. A total of about 6,37,000 solar cookers, 4,34,692 home lighting systems, and 6,97,419 lanterns have been provided to people in the country till 31.03.2009. In addition, solar home lighting systems have been provided in most of the 5379 un-electrified villages and hamlets under its Remote Village Electrification Programme.

The Ministry provides subsidy for installation of solar home lighting systems in the range of Rs.2500/- to Rs.8660/- per system, depending upon the system size and State/Region of installation. Various schemes on solar energy promoted by the Ministry include solar water heating systems, cookers, air heating systems, steam generating systems and Solar photovoltaic lanterns, home lighting systems, street lighting systems, water pumping systems, solar power plants, solar rooftop systems solar traffic lights, etc. in the country.

Financial assistance of Rs.17,300/- per system for installation of solar street lights in North-Eastern States and Special Category States and Rs.9600/- per system for other States/ Union Territories in the country is provided. The Ministry also provides 2% of the central financial assistance to the programme implementing agencies as service/administrative charges for installation of streetlights in urban areas.

Considering the capital intensive nature of renewable energy power projects, the Government is providing several concessions in the form of fiscal and financial incentives to improve the viability of projects and facilitating, in turn, the financing of such projects on commercial bank terms. These incentives include capital/interest subsidy, accelerated depreciation, nil/concessional excise and customs duties. This apart, preferential tariff for grid interactive renewable power is being given in most potential States.

This information was given by Shri Farooq Abdullah, Union Minister for New and Renewable Energy, in a written reply in Lok Sabha today.

SS:PM