Funding Over Rs 7,000 Crore! India Plans To Install 30GW Of Rooftop PV Systems

The Indian government has reportedly approved a program that will provide 750.21 billion rupees in grants to householders installing rooftop photovoltaic (PV) systems, which was announced by Prime Minister Narendra Modi in early February.

India will utilize the Central Financial Assistance (CFA) system to provide financial assistance to 10 million households. The program will provide a 60% cost subsidy for the installed capacity of 2kW rooftop photovoltaic systems, and a 40% cost subsidy for rooftop photovoltaic systems with an installed capacity of 2kW to 3kW. The installed capacity of these rooftop PV systems is capped at 3kW. at current benchmark prices, this means that a 1kW rooftop PV system receives a subsidy of Rs. 30,000, a 2kW rooftop PV system receives a subsidy of Rs. 60,000, and a rooftop PV system with an installed capacity of 3kW or higher receives a subsidy of Rs. 78,000.

Householders can apply for the subsidy on a Government of India portal where they can choose the supplier for installing the rooftop PV system. The website will help them decide by providing information on the size of the rooftop PV system, subsidy calculator, and supplier ratings.

Householders are currently able to access unsecured low-interest loans of around 7% for the installation of residential rooftop PV systems with an installed capacity of up to 3kW.

The site is supported by state-owned financial institution REC, and 20 banks and non-banking financial institutions in India will provide loans to householders seeking to install rooftop PV systems. Eight utility companies, backed by India's Ministry of Power, will support the program in several Indian states.

The Government of India has also approved the establishment of model villages for the adoption of rooftop photovoltaic systems across the country.

In a statement released by the Indian government, it said, "The proposed scheme will install 30GW of rooftop PV systems on homes across India, which will generate 100 billion units (BUs) of electricity and reduce carbon emissions by 720 million tons over the 25-year lifetime of the rooftop PV systems."

The program will serve people who use less than 300 units of electricity, typically lower-middle-class households in urban areas. India's power sector official said earlier this month, "It is difficult for these people to buy PV systems or install them on their roofs. Therefore, we are increasing loans and asking the power sector to help them install them."

The installed capacity of rooftop PV systems installed in India has been lagging compared to grid-connected ground-mounted PV plants. Of the cumulative 73GW of PV systems installed in India, the installed capacity of ground-mounted (large-scale PV plants) is 56.9GW, while the installed capacity of grid-connected rooftop PV is 11GW, and the off-grid PV system is 2.75GW. Officials from India's Ministry of Power have said that the country currently has about 675,000 household rooftop PV systems.

In addition, the Indian government recently approved the establishment of the International Big Cat Alliance (IBCA) to create a global network for the conservation of tigers and other big cats. The alliance will be a multi-country, multi-agency alliance of 96 big cat range states. India has also announced a subsidy of Rs. 2442 crore for farmers on phosphatic and potash fertilizers.