Quantum Leap in Solar Energy Generation

Solar Power Installation in the country is targetted to reach 20,000 megawatt by 2022   —A large number of companies have proposed investments totalling over Rs 1,00,000 crore. Huge incentives offered by the government are irresistible for  business houses.   Solar project  promoters  have lined up huge investments as the opportunities coming up are  very huge. Last year  the government received proposals worth over Rs 1.2 lakh crore under the Special Incentive Package Scheme from solar and photovoltaics (PV) manufacturers.

To make solar power attractive, project developers have been offered many fiscal incentives, including a 10-year tax holiday for photovoltaic (PV) and thermal solar plants set up by 2020, reduced customs duty and zero excise duty on specific capital equipment, critical materials and project imports, besides loans at cheap interest rates. As per the Generation Based Incentive (GBI) programme, the Government will provide financial assistance of Rs 12 per unit in case of solar photovoltaic and Rs 10 per unit in case of solar thermal power fed to the electricity grid from a grid interactive solar power plant of a capacity of 1 MW and above for a period of 10 years.  Solar equipment makers will also get several incentives as per Special Incentive Package (SIP), for setting up integrated solar manufacturing plants.