The government will increase the subsidy provided to consumers under the newly announced rooftop solar scheme, Suryodaya Yojana, to 60% against the current 40% provided for installation of rooftop solar projects up to 3 kW capacity, Union Minister for Power and Renewable Energy R.K. Singh said on Friday. This subsidy for the northeast and hilly states will be 70%.
Further, central public sector enterprises have been asked to take loans on behalf of the households and bear the remaining cost of installation of the rooftop solar.
“We intend to increase the subsidy and broadly it will be about 60%. 40% will still be a loan but that will not be taken by household,” Singh said while addressing the reporters. “What we have envisaged is, I am asking my CPSUs to set up SPVs (Special Purpose Vehicle). They will get the loan, set it up, and the excess units generated will go to pay off the loan. We calculate that the loan will be paid off in some 10 years (depending upon the capacity),” he added.
The new scheme will focus on consumers whose consumption of electricity is less than or equal to 300 units per month.
The new and renewable energy ministry is seeking grants from the finance ministry for the same. “The grant will come from the Ministry of Finance. They have raised funds under green bonds so typically it should come from there,” the minister said.
The government had asked REC to be the nodal agency for the implementation of the scheme which will provide line of credit to the tune of Rs 15,000 crore each to eight central public undertakings identified for the implementation of rooftop solar, among other private developers and vendors, amounting to a total credit of Rs 120,000 crore.
The ministry of new and renewable energy has further divided states among the eight CPSUs to look after the implementation of the scheme.
“The REC is supposed to coordinate with CPSUs. We have divided states amongst the CPSU and they will be responsible (for implementation of the scheme) in their areas,” the minister said.
The country has a total residential rooftop solar capacity of 2.7 GW, according to government data with 6.7 lakh households having a rooftop solar. Singh is confident that the number of 1 crore households for installation of rooftop solar will further increase.
He also believes that the growth of rooftop solar will now be 4-5 times higher than what it has been so far with more demand coming up and the new incentives provided under the scheme.
Talking about the recently announced viability gap funding for offshore wind projects in the Interim Budget for 2024-25, the minister clarified that it will provide funding for up to 40% for installation of 1 GW capacity. This 1 GW capacity is divided into two projects of 500 MW each off the coast of Gujarat and Tamil Nadu respectively.
“The surveys are completed for 500 MW capacity off the coast of Gujarat,” Singh said. The government also plans to lease out seabed on open access for installation of offshore wind capacity and has already got clearance for the seabed for 4 GW, the tender for which has already been issued.
“I have already issued a tender for 4 GW of offshore wind on an open access basis. Now the developer who quotes the highest for the seabed allocation will be given the contract,” Singh said. “They have a time limit for setting up the capacity, they will supply this on an open access basis to consumers and industries around the country.”
Developers who win the bid for each block will set up 1 GW offshore wind energy capacity and will sell the electricity directly to consumers under the open access regime. The offshore wind energy bids have been invited through the Solar Energy Corporation of India.
The minister also said that once round-the-clock renewable energy becomes viable in the country, the government will start retiring its thermal capacities. But till then, the country will add thermal capacity to meet its power demand, and 90 GW of additional coal-based capacity is coming, he noted.
“Despite me (the country) adding 90 GW of thermal capacity, it will still come down from 57% to 35% by 2030,” Singh said.