Subsidy on rooftop solar panels may go up for domestic sector

In a good news to people wants to opt for clean energy, the government is mulling to increase the subsidy on rooftop solar panels from the present 30%, sources in the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) say.

The solar power is catching up especially among the commercial and service sectors with many schools, colleges, hospitals and other business establishments saving big on power tariff by installing rooftop solar panels on their premises.

More than 60% of the commercial and service organisations have installed on-grid rooftop solar power system and are utilising the power for water heating and cooking. However, the official point out that the installation of rooftop panels has been dismal in the domestic sector.

In this backdrop, the government is mulling increasing the 30% subsidy being offered on the rooftop solar panels for domestic sector so that more apartments and individual houses go for non-conventional and eco-friendly power,sources in the NREDCAP say.

Under the new policy, however, they say the subsidy component for the commercial establishments might be slashed.

The on-grid rooftop solar system can generate power from sunrise to sunset. The user can sell the excess power to power utilities at 5.50 per unit after meeting their need. The power can also be drawn from the grid when the power generation from solar panel drops owing to adverse climatic conditions,NREDCAP Prakasam District Manager M. Kameswara Rao says.

Referring to the cost-benefit analysis of solar panels, he says the users can get back the installation expenditure in just three years by saving on their electricity bills. The users can enjoy power free of cost for the next 27 years without any hassles as the solar power system comes with a warranty for 30 years. The equipment are literally maintenance free, Axim Solar Industries head Srikrishnamurthy says while overseeing the installation of the system at the QIS College here.

Loan facility

Soft loan is also available under the priority sector lending scheme for individuals for installation of the solar power system which costs around ‚60,000 per 1 KV.