MP Rooftop Solar Policy

In a move to boost India’s aggressive solar rooftop installation target, the central state of Madhya Pradesh has announced lucrative incentives for people who install rooftop solar. According to the state, residential consumers will be eligible for 30% subsidy, while government buildings can apply for 45%-50% subsidies. Not only this, any surplus electricity generated will be adjusted against the installer’s monthly power bills. However, only those establishments who have installed solar panels made in India could apply for the given subsidy.

More about India’s Rooftop Solar subsidy policy:

The Government will provide a 30% capital subsidy for rooftop solar installations to residential, government, social and institutional segments only. This subsidy is not available for commercial and industrial customers because they can avail other benefits like accelerated depreciation, tax holidays, excise duty exemptions. India increased its rooftop budget by a significant 730% in January this year. The subsidy level could reach as far as 70% for states such as Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar.

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India has a target to install 40 GW of solar rooftops by 2022. Madhya Pradesh was the third ranking state as per solar capacity installed (~700 MW) as of January 2016, after Rajasthan and Gujarat. Madhya Pradesh’s upcoming 750 MW Rewa solar park in Madhya Pradesh, India developed by a JVC of SECI and MPUVNL will be the world’s largest solar park – almost 40% bigger than the biggest solar plants in USA built by First Solar and 3 times bigger than India’s solar park at Charnaka, Gujarat. The Rewa the project is expected to be completed by early 2017. Now the state has commissioned more than 750 MW of solar power and has a further pipeline of 780 MW more to install.

Charnaka Solar Park, India

In a recent news India lost its plea against USA at the WTO, where USA had challenged India’s DCR provision stating that it was against global WTO rules that advocates free international trade between countries. I think it is a good move by the MP government not only to promote rooftop solar in India, but also to make in India. India faces land and transmission problems, which are the biggest constraints in the installation of solar power. The government is thus pushing rooftop solar because it easily solves these two problems, while addressing the power requirements of the nation.

The other states should also take MP’s lead to promote rooftop solar in India, to address the country’s widepsread power and land issues.