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India: Government Stops Federal Subsidy Scheme

Submitted by Baerbel Epp on August 25, 2014
“Channel partners are free to sell on their own without subsidy from Government of India,” the office memorandum by the Indian Ministry of New and Renewable Energy stated on 12 August 2014. This is an important victory for India’s solar water heater manufacturers, which pre-financed around INR 3 billion (about EUR 37 million) in subsidised systems over the last years without being compensated by the MNRE. The manufacturers or their dealers had to sell the solar collector systems as net-of subsidy and claim reimbursement by the government later. Through a strong and solidly united campaign, the Solar Thermal Federation of India made the ministry aware of the extremely difficult business situation over the last one-and-a-half years and called “for the immediate settlement of the pending claims in order to save the industry from bankruptcy”. MNRE’s Secretary, Upendra Tripathy, reviewed the situation and concluded that instead of liabilities mounting, the present subsidy scheme better had to be halted. The subsidy on off-grid PV up to 1 kWp had already been put on hold in April 2014.
 

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