The government of Uttar Pradesh is preparing to launch generous new subsidies for rooftop solar projects in an effort to promote new installations in the state.

A source in the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) told Mercom that the government plans to provide a subsidy of ₹15,000 (~$237)/kW for the development of rooftop solar projects in the state. If a single project is 3 kW, the subsidy provided would be capped at ₹30,000 (~$474) for the entire project.

On top of the state government subsidy, the central government is also planning to provide a subsidy of 30 percent or ₹21,000 (~$332)/kW, the UPNEDA official added.

The official also said that subsidies would be provided to consumers and not to the company that sets up the projects.

In a tweet by BJP’s Uttar Pradesh wing, the party mentioned that the cost of a rooftop solar project would decline by approximately half with the subsidies, and this would encourage consumers to take up green energy.

Mercom reported in December that the state’s cabinet of ministers had approved its Draft Solar Policy 2017 and given it a retroactive effective date of November 6, 2017. The policy laid out a number of things that the state must do to promote the adoption of renewable energy.

Last month, Mercom also reported that the Ministry of New and Renewable Energy (MNRE) had released a proposal to overhaul the existing rooftop solar implementation mechanism by turning it over to distribution companies (DISCOMs). Under the proposal, DISCOMs would be eligible to receive financial assistance to the tune of ₹234.5 billion (~$3.66 billion) based on their performance in facilitating rooftop solar deployment.

According to MNRE, Uttar Pradesh had cumulative rooftop solar installations of 55 MW till November 2017.

Image credit: UPNEDA