UP Announces ₹15,000-30,000 Subsidy for Residential Rooftop Solar Systems Up to 10 kW

For a 1 kW rooftop solar system, the residential consumer will have to pay just ₹7,800

March 12, 2020

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The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has announced subsidies for solar rooftop projects under Phase II of the grid-connected solar rooftop program.

According to UPNEDA, the subsidies are valid only for residential rooftop solar projects.

For rooftop projects in the range of 1kW to 3 kW under the domestic category, the state will provide a subsidy of ₹15,000 (~$208)/kW to ₹30,000 (~$416)/kW, and the center will provide a subsidy of 40%.

For rooftop projects greater than 3 kW and up to 10 kW, the state will provide a subsidy of ₹15,000 (~$208)/kW to ₹30,000 (~$416)/kW, and the center will provide a subsidy of 40% for the first 3 kW and 20% on the remaining 7 kW.

For rooftop projects with capacity more than 10 kW under the domestic category, the state will grant a subsidy of ₹15,000 (~$208)/kW to ₹30,000 (~$416)/kW and the center will provide a subsidy of 40% for the first 3 kW and 20% on the capacity above 3 kW and up to 10 kW, and there will be no subsidy beyond 10 kW.

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For rooftop projects with a capacity greater than 10 kW and up to 100 kW under a group housing society, the center will provide a subsidy of 40% for the first 3 kW, 20% on the remaining kW.

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For domestic users, using a rooftop project of 1 kW capacity with the total cost of the project being ₹38,000 (~$527), the center will provide ₹15,200 (~$211), whereas, the state will provide a subsidy of ₹15,000 (~$208) and the consumer will have to pay the remaining amount ₹7,800 (~$108). Similarly, for 2 kW, the center will provide ₹30,400 (~$421), and the state subsidy will be ₹30,000 (~$416), whereas the consumer will have to pay an amount of ₹15,600 (~$216).

For domestic users, using a 3 kW rooftop solar project of the total cost of ₹114,000 (~$1,580), the center will provide a subsidy of ₹45,600 (~$632) and state ₹30,000 (~$416) and the consumer will have to pay only ₹38,400 (~$532). Similarly, for 4 kW, the central subsidy will be ₹53,200 (~$737), and the state subsidy ₹30,000 (~$416), and the remaining ₹68,800 (~$954) will have to be paid by the consumer.

In September last year, the Ministry of New and Renewable Energy (MNRE) had issued a clarification regarding the subsidy applicable for rooftop solar installations by individual residential households under phase-II of grid-connected rooftop solar program. According to MNRE, rooftop solar installations up to 3 kW will qualify for a subsidy of 40%. For rooftop solar installations above 3 kW, and up to 10kW will get a grant of 40% for the first 3 kW and 20% for the remaining capacity, and for installations above 10 kW, it is 40% for the first 3kW and 20% for the remaining 7 kW. However, there’s no subsidy beyond 10 kW capacity.

Earlier, UPNEDA had floated a tender for grid-interactive rooftop solar power projects between 1 kW to 25 kW at various locations in the state, which will be eligible for subsidies by the MNRE.

Previously, Mercom had reported UPNEDA had issued a tender for 16 MW of grid-interactive rooftop solar projects for captive use (Capex Model) atop various government buildings across the state.

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