MINISTER OF STATE FOR NON-CONVENTIONAL ENERGY SOURCES (SHRI M. KANNAPPAN)
(a), (b) & (c): A statement is laid on the table of the house.
Statement referred to in reply to Parts (a),(b)&(c) of Lok Sabha Starred Question No. 47 for 21.11.2002 regarding Welfare Schemes under Solar Energy Programme.
(a): The Ministry of Non-Conventional Energy Sources is implementing a number of schemes under the solar energy programme wherein subsidy and/or soft loan is provided to users of such systems. The details of the norms for financial assistance provided by the Ministry under different schemes are given in Annexure I. In all cases the balance cost of the systems covered under the schemes is to be met by the beneficiaries or the implementing agency.
(b)&(c): The Ministry has been implementing schemes on deployment of solar phototvoltaic (PV) systems, solar thermal systems and solar power generation in Rajasthan. These schemes are being implemented by the state nodal agency viz. Rajasthan Energy Development Agency (REDA), which is now known as Rajasthan Renewable Energy Corporation Ltd (RREC). The Government of Rajasthan is also providing funds to the state nodal agency, which are being used to support additional users. Other organizations like Social Work & Research Centre (SWRC), Tilonia and World Renewal Spiritual Trust (WRST), Mount Abu are also involved in implementation of programmes on solar PV systems and solar thermal systems. The details of funds provided by the Ministry to these agencies in Rajasthan during the last three years and till date this year are as given below :
(Rs. In lakhs)
Name of Scheme Name of Agency 1999-2000 2000-01 2001-02 2002-03 (tilldate)
SPV Programme REDA/RREC 308.00 141.92 474.22 350.58 SWRC 7.12 70.29 100.06 56.46 WRST - 40.32 42.79 18.31
Solar Thermal
Programme REDA/RREC - - - - SWRC - - - - WRST 3.19 0.70 1.25 -
SPV Market Dev.
Programme (loan
from IREDA) SWRC 35.30 - 109.29 59.55
Solar Power REDA/RREC 9.75 - 83.67 5.00
Annexure-I
FUNDING NORMS FOR SOLAR ENERGY PROGRAMMES DURING 2002-2003
SOLAR PHOTOVOLTAICS
1.0 Solar Home Systems, Street Lights, Power Plants, Solar Generators, Building Integrated Photovoltaic (BIPV) systems and other community applications
Sl.No. SPV System Central Subsidy General Areas North Eastern States
1. Solar Home System 50 % of ex-works 90 % of ex-works cost, subject to a cost, subject to a maximum of maximum of
Model 1 (18 W module, 1 light) Rs. 3,000/- Rs. 5,000/- Model 2 (37 W module, 2 lights) Rs. 5,500/- Rs. 10,000/- Model 3 (37 W module, 1 light, 1 fan) Rs. 5,500/- Rs. 10,000/- Model 4 (74 W module, 2 lights, 1 fan) Rs. 10,000/- Rs. 18,000/- Model 5 (74 W module, 4 lights) Rs. 10,000/- Rs. 18,000/-
2. Street Lighting System Rs. 11, 000/- Rs. 20, 000/-
3. Power Plants & Other Community Systems Rs. 1,80,000 / kWp of PV array Capacity Rs. 3,50,000/kWp of PV array Capacity
4. Solar generators ( 150 W - 600 W) 40% with a maximum of Rs. 40,000
5. Building Integrated Photovoltaic Systems (BIPV) 80% of the cost of photovoltaic modules used in BIPV projects
2.0 Solar PV Water Pumping Systems for Agriculture & related uses
S. No. Implementation Arrangement Central Subsidy Other Support
1. Direct marketing by manufacturers, Rs. 110 per watt of Soft loan @ 2.5% and subsidy routed through the Indian photovoltaic (PV) 5% interest rate to Renewable Energy Development Agency array used, subject to intermediaries and (IREDA) a maximum of Rs. 2.5 users respectively lakhs per system on 90% of the remai- ning unsubsidized price, to be repaid in 10 years, with one year moratorium.
2. Direct procurement by States Rs. 135 per watt of PV array used, subject to a maximum of Rs. 2.5 lakhs per system
3. Direct procurement by NE States 90 % of approved ex-works cost of system
4. Community Drinking water supply Rs. 110 per watt of PV array used, subject to a maximum of Rs. 2.5 lakhs per system
3.0 Grid Connected Solar PV Power Projects
For grid connected PV power plants for voltage support in rural grids, peak load shaving in urban centers and diesel saving in islands/remote locations, subsidy up to 2/3rd of the project cost is provided subject to a maximum of Rs. 2 crores for a 100 kW capacity project. The Ministry also provides up to Rs. 1 lakh for preparing a detailed project feasibility report. In addition an amount up to Rs. 5 lakhs is provided to the state agency for monitoring of the project. The Ministry also supports captive projects by industry for which interest subsidy up to 4% is provided, with floor rate of interest of 10%.
4.0 Soft Loan Scheme on PV systems
The Ministry provides interest subsidy to IREDA (Indian Renewable Energy Development Agency) and banks to provide soft loans to the users / intermediaries at the rates specified below.
(a) Solar lanterns
S.No. Feature Implementation through
IREDA Banks
1. Loans for solar lanterns 85% of the lantern cost to 85% of the lantern cost be given as loan @ 5% interest to be given as loan @ in general areas and 3% in 5% interest in general NE region. areas and 3% in NE region.
(b) Other PV Systems
S.N Soft Loan through Interest Repayment Moratorium Minimum Rate (%) p.a. Period (Years) (Years) Beneficiary Contribution (%)
1. IREDA (for commercial users) 7 5 1 20
2. IREDA (for non- commercial users) 5 5 1 20
3. Banks ( for individuals & organizations who do not claim depreciation) 5 5 Nil 15
Solar pumps are not covered under this scheme.
SOLAR THERMAL PROGRAMME
1.0 Concentrating type Solar cookers
Type of solar cooker Support to users
Dish solar cooker (Minimum diameter 1.4 m) 50% of total cost, limited to Rs.2500/- per cooker.
Community solar cooker for indoor cooking
(Minimum aperture area ( 7 sq. m.) 50% of eligible capital cost, limited to Rs.25000/- per cooker
Solar Steam Cooking system 50% of eligible capital cost, as agreed upon by the Ministry
2.0 Demonstration programme in NE and New Technology demonstration
Following are the details of subsidy provided by the Ministry for demonstration projects in NE region, Islands and Jammu & Kashmir :
1. Rs. 6000 per sq. m. of collector area for NE region
2. Rs. 4000 per sq. m for islands and Jammu & Kashmir
3. Under demonstration projects 50% of the system cost is provided as subsidy for trying new technologies in any part of the country
3.0 Soft loan Scheme
Following are details of the scheme :
Borrowers Eligible applications Eligible end users Interest Rate to end users
Through IREDA
Financial intermediaries Solar water heating 1.Individuals, @ 5% to
of IREDA (will get loans from system (any capacity), institutions,trusts, non-profit
IREDA for on-lending to: solar air heating charitable organi- organizations
1. Individuals & non-profit system, solar desal- zations etc. (non- & individuals
organizations @ 2.5%; & ination system, solar profit organizations)
2. Industry, hotels, and swimming pool
other commercial organi- 2. Industry, hotels, 7% to commercial
zations @ 4.5%) hospitals, other organizations business establishments /commercial organizations
End users (non-commercial) Solar water heating Institutions, trusts, 5% system (any capacity), charitable organiza- Solar air heating tions etc. (non-profit system, solar desali- organizations) nation system, solar swimming pool
End users (commercial) Solar water heating Industry, hotels, 7% system (any capacity), hospitals, other solar air heating business establishments system, solar desali- / commercial organizations nation system, solar swimming pool
Through Banks and FIs (including housing financing organizations )
Individuals, institutions, Solar water heating Individuals,institutions, @ 5%
hospitals, nursing homes, system (up to 5000 hospitals, nursing homes,
small business establishments, litres capacity) small business
housing cooperative societies, establishments, housing
/developers etc.. cooperative societies / developers etc.. Hotels not eligible
Individuals, institutions, Solar drying units Individuals,institutions, @ 5%
hospitals, nursing homes, hospitals, nursing homes,
small business establishments, small business establishments,
agricultural cooperatives etc.. agricultural cooperatives etc..
@ End-users (other than individuals) will have to give an undertaking that no depreciation allowance will be claimed under income tax rules.
The following Banks are operating the interest subsidy scheme on solar water heaters :
Canara Bank, Union Bank of India, Andhra Bank, Bank of Maharashtra, Punjab & Sind Bank, Syndicate Bank and Punjab National Bank
4.0 Solar Buildings
Financial assistance up to 10% of the cost of construction, subject to a maximum of Rs. 10 lakhs for buildings to be constructed in Government/semi-Government sector.
SOLAR ENERGY PROGRAMMES FINANCED BY IREDA
In addition to subsidy and soft loan programmes of the Ministry, IREDA also provides loan to solar energy projects as per given norms:
S.No. Programme / Scheme Interest Repayment Moratorium Minimum Rate (%) p.a. Period incl. (maximum) Promoters` Moratorium (Years) Contribution (maximum) (%) (Years)
1. SPV Manufacturing 13.5 8 2 30
2. SPV Market Development 13.5 10 1 20
3. Solar Thermal Systems 13.5 10 1 20
OTHER INCENTIVES
To support generation and development of non-conventional energy sources including solar energy, a number of incentives such as 80% accelerated depreciation, concessional duty import of raw materials, consumables and components, concessional duty for import of machinery for power projects and excise duty exemption on certain devices/systems have been provided by the Government. The Ministry also provides support for R&D, training and other related activities.
