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No subsidy on solar panels

According to reports, in a move that may discourage residents to opt for solar energy, the Delhi government has discontinued the subsidy it used to offer on the installation of solar panels from April 1.

The new move comes at a time when the government has been emphasising on ‘going green’ and conserving energy.

Vendors supplying and installing solar panels said though a number of people enquire about installing solar water heaters, the high investment cost acted as a big deterrent.

The subsidy offered by the Delhi government — Rs. 6,000 was provided to domestic consumers — used to help people opting for solar water heaters, which help reduce power bills. In case of non-commercial organisations, the subsidy went up to R60,000.

According to officials, a decision to review the scheme of providing subsidy, which had started in 2008 to encourage people to conserve energy, was taken at a cabinet meeting.

“The subsidy used to be renewed every year. However, many years have passed and we felt the need to assess the scheme and evaluate the results it has yielded so far. Hence, from this year we have decided to discontinue the scheme till a further decision is taken,” a senior Delhi government official said.

The official said the government is not very keen on having the subsidy in place as the ministry of new and renewable energy already offers subsidy to those opting for solar energy.

The residents, however, are unhappy with the move.

“Installing solar panels is an expensive affair. It is only because we used to get subsidy from the central and Delhi government that we used to opt for the system. One the one hand, the government wants people to conserve energy and the same time it is taking away the incentives,’ said Rima Kumar, a resident of Sarita Vihar.

Vendors, too, claimed that they had stopped providing solar panels at subsidised rates.

“If subsidy has been stopped, naturally we will sell the panels at the market price. The government should reconsider its decision,” said Bhupinder Singh, a Moti Nagar-based vendor of solar heaters.

One comment

  1. Remove the central and state subsidies for Renewable energy projects and systems. let the manufacturing industry and the resocs come out with transparent price mechanism, which is ridiculously kept high by these errants through MNRE policy papers, which needs an immediate correction as the per mw installation is around rs. 42cr/MW i.e Rs.2.lakh/kw + 30% subsidy (0.3 x 2 = 0.6) + 80% depreciation benefits (0.8 x 2=1.6) = Rs. 4.2 lakh/kw, i.e Rs. 42 cr/MW….. thus, the system is flawed and it adds to the burden of future generation. The Delhiites must compel these Manufacturers and service providing agencies to declare their cost mechanism with the following details and you will notice that the system which should cost hardly rs. 60,000 to 90,000 / kw (without storage) with imported panels, why are they charging Rs. 2 lakh/kw !!??…..

    Without any Capital Subsidy, Viable Gap funding to the system owners or Accelerated Depreciation to RESCOS, What government has to do is to fund (owners of these systems) 90% of this cost at 0.5% interest rate per annum through Banks to buy these low cost residential roof top equipment from reputed RESCOS with maintenance contract…. Based on the Banks report (with Third part inspection from SGS or Lloyds or certified inspection agencies) on generation or equipment in good condition, the RESCOs shall be extended with license to make them responsible for good equipment supply:

    Cost elements for a Residential PV roof top: INR
    Module: Unit
    Module Price per Wp
    Installation Labour:
    Electrical INR per hour
    General Construction INR per hour
    Labour Content (all types) Hours 70/5kw system to be informed by RESCO
    Operating Overhead % 30
    Profit on Labour % 20

    Inverter Price: per Wp

    Installation Mateirals:
    Mounting Hardware Per Module
    Wiring, Conduit, Connectors Per Module
    Supply Chain costs % of Materials price 10%
    Site Work:
    Grid Interconnect

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