Solar rooftop materials and equipment utilized for rooftop solar projects (grid-connected) is now exempt from customs and excise duty. The Ministry of New and Renewable Energy (MNRE) has released new guidelines for the grant of duty benefits to end users.

The MNRE gave customs and excise duty exemption certificates with immediate effect to all solar rooftop project contractors with a minimum 100 kW capacity as a single project or bundled project. The MNRE has regulated, that in the case of bundled projects, the contractor will apply for a customs and excise duty exemption certificate on behalf of the end user.

This is required to provide a push for more solar rooftops in the country. This single step will lower rooftop solar project costs across the country, stated an MNRE official.

Mercom previously reported that the government approved the proposed amendments to the Achievement-linked Incentives and Awards program for grid-connected rooftop and small solar power projects in a bid to promote rooftop and small solar projects.

Mercom had also reported that the new benchmark tariffs were set for rooftop solar after almost three years in an effort to boost installations and help achieve 100 percent electrification through the implementation of off-grid solar.

With these guidelines coming into immediate effect, the solar rooftop sector in India has become heavily subsidized and the MNRE expects end users to embrace rooftop solar, which has become cheap, both in the short- and long-run, added the MNRE official.

Raj Prabhu Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.