According to Deloitte and Confederation of India Industry (CII), India has not even harvested one percent of it solar potential which is 749GW according to National Institute of Solar Energy. Total solar power generation capacity touched 6.763GW as on 31st March 2016 (14).
Cumulative Annual Growth Rate (CAGR) of 86% is required to achieve the target of 40GW, from the rooftop capacity of 740MW as on 31st March 2016 according to “Bridge to India”. Government sees tremendous potential for generating decentralised and distribute dsolar power by utilising the rooftops of industrial, commercial, residential and public buildings (1).
Indian government is offering several tax and financial incentives (2) to support the rooftop solar market:
- Capital subsidy of 30% for residential and institutional consumers in general states
- 70% subsidy for special states which includes North Eastern states including Sikkim, Himachal Pradesh, Jammu and Kashmir, Uttarakhand, Lakshadweep, and Andaman and Nicobar Island.
- Accelerated depreciation of 80% in the first year for commercial and Industrial sectors
- Tax holiday for 10 years (Minimum alternate tax payable)
- Custom duty concessions and excise duty exemption
- Provision of bank loans as a part of home loan/ home improvement loan
- Rooftop budget 5000 crore for implementation of grid connected rooftop over a period of five years upto 2019-20 (12)