‘Govt delay in subsidy disbursal affecting rooftop solar plants

‘Govt delay in subsidy disbursal affecting rooftop solar plants

The growth of solar photovoltaic power plants in Punjab has been hampered by delayed disbursement of subsidy to residents. Even as the Punjab government is struggling to install solar rooftop power plants, around 300 applications of subsidy to the tune of around Rs 6 crore are pending for more than six months. As an incentive, the government provide subsidy at the rate of Rs 17,000 per kilowatt (KW).

All those interested in installing solar plants are entitled to avail subsidy from the ministry of new and renewal energy (MNRE) through Punjab Energy Development Agency (PEDA).

The subsidy is released to the applicant after commissioning of the project and receipt from the MNRE on the basis of rates of different categories. Arun Khetarpal, proprietor of a Ferozepur-based firm, said there was a long delay in release of subsidy, which has emerged as a big challenge for the firms which install solar rooftop.

“Due to this delay, the firms, at times, are forced to pay the subsidy amount to the customers from their own pocket. The customers pay after the subsidy is released by the government,” said Khetarpal. Read More

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