New benchmark costs have been set for small-scale and rooftop solar projects in India, according to a government release and will come into effect on March 20, 2017. These new costs were approved by the President of India.
A Ministry of New and Renewable Energy (MNRE) official stated, this will boost rooftop installations and help achieve 100 percent electrification through the implementation of off-grid solar. These new benchmark costs were a long overdue; we have been waiting since 2014. They will boost project development for off-grid, standalone and rooftop solar, added the MNRE official.
The new benchmark tariffs will help expedite the process for the solar energy program for the power loom sector under which financial assistance and capital subsidies are being supplied to the industry to address power shortage issues.
Mercom previously reported, 149 MW of solar projects have been installed under the off-grid projects program. According to Mercom’s India Solar Project Tracker, only 730 MW of rooftop solar has been installed so far. This is way below the targeted rooftop capacity. The new benchmark tariff will aid in easy tendering of rooftop projects through competitive auctions.
Raj Prabhu 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 MercomIndia.com 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.