Rajasthan exempts electricity duty for solar rooftop units to encourage renewables
In what would further encourage investments in renewable energy projects, the state government has exempted electricity duty of 40 paise per unit for rooftop solar and captive units. The decision is expected to help Rajasthan reach closer to 2300 MW rooftop solar capacity by 2022, a target given to it by the Centre. The duty cut is expected to have a positive impact on the new capacity lined up. Recently, Rajasthan Renewable Energy Corporation (RREC) issued rate contract order for 25 MW rooftop plants and empaneled companies to design, supply and install these projects. People interested to put up rooftop plants can reach these vendors who are also required to guarantee 5 years of maintenance.
“These projects enjoy a subsidy of 30% provided by the government. Capacity of these plants vary from 1 kWh to 500 kWh. The 2300 MW target given to Rajasthan by the Centre for solar rooftop is steep, but we have all the necessary policies in place to achieve that,” said B K Doshi, managing director, RREC. He said tenders for another 5 MW has been issued on Friday and the projects will be come up on the government buildings in the divisional headquarters of the state. “We have adopted Resco model for the 5 MW under which the consumer can install a solar power plant and not pay anything upfront. A power purchase agreement is signed between the installer and the consumer. The installing company will make the investment and the consumer will pay for the power,” added Doshi.
Rooftop has received a fillip after the Rajasthan announced net-metering policy by which an individual can use the power he o r she generates and the surplus can be fed into the discom’s grid. The state already has an installed rooftop capacity of 47 MW.
“The duty exemption will create a lot of momentum in the rooftop segment by encouraging individuals and institutions to set up their own plants. They can actually cut down on power costs while contributing to the green energy,” said Sunil Bansal, promotor of city-based Diwakar Renewable & Infra Pvt Ltd.