Question : INCENTIVES FOR RENEWABLE ENERGY EQUIPMENT



(a) whether the Government proposes to give certain financial incentives to people belonging to economically marginalized sections of society for purchase of renewable energy equipments;

(b) if so, the details thereof;

(c) the incentives given by the Government to the manufactures of solar equipments ; and

(d) the other measures being taken by the Government to popularize the renewable sources of energy?

Answer given by the minister


THE MINISTER OF NEW AND RENEWABLE ENERGY (DR. FAROOQ ABDULLAH)

(a): The Government is already providing Central Financial Assistance (CFA) / Incentives ranging between 30 to 100% of costs of deployment/ purchase of various types of renewable equipment to people, including those belonging to economically marginalized sections of society, depending on location and user category.

(b): Details of the CFA/ incentives being provided for various off-grid/ decentralized renewable energy systems/ devices are given in Annexure.

(c): Incentive of excise duty exemption is available to manufactures of solar equipments. Benefit of nil/ concessional customs duty on import of some of the equipment, raw materials, components and products used in manufacture of solar energy equipment is also available.

(d): The Government has taken several measures to popularize use of renewable sources of energy in the country. These include:

# Provision of fiscal and financial incentives, such as, capital/ interest subsidy, accelerated depreciation, nil/ concessional excise and customs duties.

# Encouraging private investment in renewable power projects through additional measures like Generation Based Incentives, Renewable Power Purchase Obligations and Preferential Tariffs in most potential States; etc.

# Jawaharlal Nehru National Solar Mission initiated in January 2010 to promote large scale deployment of solar energy systems.

# Supporting sector specific seminars/ workshops/ training programmes.

# Extensive publicity and awareness on the use of renewable energy systems/ devices through print, postal and electronic media.