Page 14 - Solar Energy in India: Challenges with Policies for Off-Grid Installations
P. 14
Inconsistent government develop targeted incentives that take released for the past 3–4 years, and the
initiatives into account the specific requirements money of channel partners is stuck.
of different regions and sectors. Moreover, the process of availing the
It has been found that most of the government subsidy has been found to
government initiatives have been Non-functional current be very tedious and cumbersome, thus
inconsistent. MNRE policies change from schemes defeating the very purpose of subsidy.
time to time without any consultation To reduce the time lapses in release of
with the stakeholders, causing undue Government schemes of soft loans and capital subsidy, it is recommended that
hardships and delays. Recently, the interest subsidy have been found to be some percentage of the capital subsidy
capital subsidy scheme for off-grid non-functional as no bank is providing should be directly given to channel
solar applications in the commercial these loans.The major issue here is that partners in advance by MNRE once
sector was withdrawn without any of collateral.The banks do not consider the application has been approved.
prior notification.Thus, beneficiaries the solar system as collateral, against Rest of the amount should be given to
are confused in terms of whether they which, they could approve the loans. state governments to be released to
should invest in the solar systems now Thus, these loans are normally rejected. channel partners after commissioning
or wait for the subsidy scheme to come of the projects. Subsequently, after
again. It is suggested that national-level No release of subsidy commissioning of the systems, the
policies should be made in consultation channel partners could avail the capital
with states and the changes should Capital subsidy, which has been subsidy directly from the state rather
be notified on the MNRE website. It is found to be one of the most attractive than first applying to state and then
strongly felt that state governments government incentives, has been forwarding the application to MNRE.To
should assist MNRE in implementing the observed to be non-functional. As per prevent any malfunctioning at this stage,
policies of the central government in an the policy, the building owner gets the penalties should be laid on the channel
effective and efficient manner in order solar system at subsidized rates from the partners not meeting the timeline for
to boost the uptake of solar energy in channel partners. However, the subsidy completion of project.
the country without any delays. Both is not released to the channel partners
MNRE and state governments should in time by the government. It has been
seen that capital subsidy has not been
january–march 2017 20 energy future
initiatives into account the specific requirements money of channel partners is stuck.
of different regions and sectors. Moreover, the process of availing the
It has been found that most of the government subsidy has been found to
government initiatives have been Non-functional current be very tedious and cumbersome, thus
inconsistent. MNRE policies change from schemes defeating the very purpose of subsidy.
time to time without any consultation To reduce the time lapses in release of
with the stakeholders, causing undue Government schemes of soft loans and capital subsidy, it is recommended that
hardships and delays. Recently, the interest subsidy have been found to be some percentage of the capital subsidy
capital subsidy scheme for off-grid non-functional as no bank is providing should be directly given to channel
solar applications in the commercial these loans.The major issue here is that partners in advance by MNRE once
sector was withdrawn without any of collateral.The banks do not consider the application has been approved.
prior notification.Thus, beneficiaries the solar system as collateral, against Rest of the amount should be given to
are confused in terms of whether they which, they could approve the loans. state governments to be released to
should invest in the solar systems now Thus, these loans are normally rejected. channel partners after commissioning
or wait for the subsidy scheme to come of the projects. Subsequently, after
again. It is suggested that national-level No release of subsidy commissioning of the systems, the
policies should be made in consultation channel partners could avail the capital
with states and the changes should Capital subsidy, which has been subsidy directly from the state rather
be notified on the MNRE website. It is found to be one of the most attractive than first applying to state and then
strongly felt that state governments government incentives, has been forwarding the application to MNRE.To
should assist MNRE in implementing the observed to be non-functional. As per prevent any malfunctioning at this stage,
policies of the central government in an the policy, the building owner gets the penalties should be laid on the channel
effective and efficient manner in order solar system at subsidized rates from the partners not meeting the timeline for
to boost the uptake of solar energy in channel partners. However, the subsidy completion of project.
the country without any delays. Both is not released to the channel partners
MNRE and state governments should in time by the government. It has been
seen that capital subsidy has not been
january–march 2017 20 energy future
