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India: Subsidy Scheme under the National Solar Mission

Submitted by Baerbel Epp on June 28, 2010

In June 2010, the Federal Government of India announced a new set of financing guidelines intended for solar hot water systems in the residential, commercial and industrial sector under the National Solar Mission. According to the government, the incentives will be paid so long until the targets of the National Solar Mission are met. In April 2013 new requirements of the subsidy scheme came into effect that reduced the benchmark costs of commercial applications and residential vacuum tube collector systems.

 

Country / region

 

India

Name of programme

 

Subsidy scheme under the National Solar Mission

Type of incentive

 

Subsidy, combined with a low-interest loan

Eligible technologies

 

  • Evacuated tube collectors

  • Flat plate collectors with a liquid working fluid

  • Air collectors

  • Solar concentrators

 

Applicable sectors

 

Residential, industrial, institutional and commercial

Amount

 

30 % of the average benchmark system costs, which includes the costs for the collector, tank and mounting system

Benchmark costs in all states other than the Special Category States

  • Residential users of flat plate collector systems: 11,000 INR/m2 
  • Commercial users of flat plate collector systems: 10,000 INR/m2 
  • Residential users of vacuum tube collector systems: 8,500 INR/m2
  • Commercial users of vacuum tube collector systems: 8,000 INR/m2
Maximum incentive

 

Between 3,000 and 6,000 INR/m2, depending on the applied technology (see the list of benchmark costs above). The maximum incentive is adapted annually.

Terms of loan

 

Only relevant if it is a tax credit programme

Requirements for system

 

Components must be certified by the Bureau of Indian Standards (BIS)

Finance provider

 

  • Indian Renewable Energy Development Agency (IREDA)
  • Banks
  • Financial Institutions
  • Micro-finance Agencies
  • Renewable Energy Service Companies (RESCO)

  • System Integrators
  • Programme Administrators

     

Total funds

 

10 billion INR in the first year, including solar thermal applications and PV off-grid systems

Funding source

 

Public funds

Effective date

 

1 April 2010

Expiration date

 

The incentives will be paid so long until the targets of the National Solar Mission are met.

Website

 

http://mnre.gov.in/pdf/jnnsm-g170610.pdf

Last review of this tabloid

 

June 2013
Contact Secretary, Ministry of New and Renewable Energy, Government of India

Phone: +91-11-24361481

 

Effective Date: 
April 1, 2010
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