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Solar rooftop makers yet to get Centre’s Rs 200 crore subsidy in Gujarat

Source Name: 
ET Energyworld
Source Url: 
https://energy.economictimes.indiatimes.com/news/renewable/solar-rooftop-makers-yet-to-get-centres-rs-200-crore-subsidy/63778211

Solar rooftop system manufacturers, who pass on subsidy benefits to customers and later recover the amount from governments in the state and Centre, have not been paid their subsidy dues by the central government since September last. The total outstanding subsidy amount has surged to Rs200 crore for which 118 solar rooftop system manufacturers approved by Gujarat Energy Development Agency (GEDA) have moved heaven and earth but to no avail.

According to the policy for residential solar rooftop system, the state government provides Rs 10,000 subsidy per kilowatt for maximum 2 kilowatt while central government’s Ministry of New and Renewable Energy (MNRE) gives Rs 20,700 per kilowatt. A solar rooftop system of 1 kilowatt capacity worth Rs 60,000 costs Rs 41,000 to an end user after deducting the subsidy of both the governments. 

GEDA has approved nearly 118 manufacturers in the state for installing rooftop solar systems for residents with subsidy. These channel partners have to provide rooftop systems to end users after deducting the subsidy and then claim the amount from the governments. GEDA is the nodal agency which processes the applications for the subsidy.

Rajesh Joshi, chairman of Federation of Solar Manufacturers and Intermediaries, said, “Since last September, we have not received the subsidy amount from the central government which is around Rs200 crore. We are facing a fund crunch because our money remains blocked.”

Whoever wants to install solar rooftop system in his/her residential premises needs to approach one of these channel partners who files an online application to GEDA with valid documents of customer. GEDA issues a sanction letter and also sends a letter to electricity distribution company (discom) of that area informing that a customer wants to install a solar rooftop system. 

Once the sanction is received, the channel partner installs the solar rooftop system and takes the pictures and issues an invoice to the customer. They also collect the amount from him or her after deducting the subsidy. The channel partner informs the discom to change the meter of the customer and the company issues a pro forma. Along with the picture, invoice and pro forma issued by the discom, the channel partner applies to GEDA for release of the subsidy.

When contacted, GEDA director Saidingpuii Chhakchhuak told TOI, “Government of Gujarat has not defaulted on payment and its share has been released. MNRE has not been able to release the subsidy because of some problem. We are constantly in touch with them. The subsidy will be released by end of April.” 

Author: sustainabilityoutlook