Solar Panels in state are yet to get Rs 30 crore subsidy

The manufacturers of solar panels for water heater systems in the state are yet to get Rs 30 crore worth of subsidy since the last two years from the central government. The Ministry of New and Renewable Energy (MNRE) launched a scheme in 2010 under the Jawaharlal Nehru National Solar Mission to encourage installation of solar water heaters. The mission had set a target of deploying 20,000 MW of grid connected solar power by 2022 and reduce the cost of solar power generation in the country.

To promote the scheme, the government had announced a 30% subsidy on solar water heaters sold through the direct channel partners (DCPs) across the country. The subsidy amount was to be reimbursed to the channel partners. From 2010-11 to 2013-14, Gujarat added over one lakh square metres of solar water heaters commissioned by MNRE but the subsidies for 2012-13 and 2013-14 are yet to reach the manufacturers. The manufacturers have sent several letters to MNRE as well as to state’s nodal agency Gujarat Energy Development Authority (GEDA), but there has been little breakthrough. “Around Rs 5 crore, 50% dues of 2012-13 was hurriedly sanctioned before the visit of power minister Piyush Goyal to refrain us from highlighting our issue to the minister,” said a solar system manufacturer. However, dues of approximately Rs 30 crore are yet to be received.

After Bangalore and Pune, Gujarat comes third in the area added with solar water heaters. Gujarat added 24,000 sq m in 2010-11, 30,000 sq m in 2012-13 and around 45,000-50,000 sq m of solar water heaters in 2013-14. Jaideep Malaviya, secretary general of Solar Thermal Federation of India (STFI), said the subsidy attracted a large number of users and the area under solar water heaters grew steadily at the rate of 10 lakh sq meters per year.

“The long pendency is forcing many direct partners to shut shop. India was the third largest market for solar water heaters after China and Germany, but 2013 saw it slipping to the 5th rank,” said Malaviya. “Of the Rs 375 crore pending across the country, about Rs 55 crore is due for the year 2012-13 and Rs 320 crore for 2013-14,” added Malaviya. MNRE sources said that unexpected growth of the programme led to shortage of funds and will soon be reimbursed. The manufacturers want that the new government should speed up reimbursement and also declare the policy for 2014-15.

Source: Times of India