The NDA government led by Prime Minister Narendra Modi has scaled up the allocation for installation of solar rooftops to Rs 5,000 crore from Rs 600 crore earlier, to give an impetus to clean energy and also address the problem of power shortage in the country.
The project entails installation of 4,200 MW solar rooftops systems on school buildings, hospitals, government institutions, commercial enterprises and homes over the next five years up to 2019-20 under the National Solar Mission.
The revised budget of Rs 5,000 crore was approved by the Cabinet Committee on Economic Affairs chaired by Modi on 30 December, 2015, an official press statement issued by the ministry of new and renewable energy said.
To achieve the target, the Central government will provide 70% capital subsidy to special category states that comprise the Northeast, Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and Lakshadweep, Andaman & Nicobar Islands.
It will be 30% for the rest of the states.
Commercial and industrial enterprises that are already availing of a slew of benefits, won't be eligible for the subsidy.
Pushing the case for switching over to clean energy, the government said that energy generated from solar rooftops costs about Rs 6.50/kwh.
Earlier this month, the government awarded two solar power projects to SoftBank-backed SBG Cleantech and Azure Power. While SBG Cleantech will generate 350 Mw solar power project in Andhra Pradesh by bidding the lowest tariff of Rs 4.63 per unit, Azure will build a 100 MW solar power plant in Andhra Pradesh for a higher tariff of Rs 5.12/kWh.
