In order to provide a collective policy covering all sources of energy including renewable energy sources, the Government of India has formulated an Integrated Energy Policy. The said policy outlines a roadmap to develop energy supply options and increased exploitation of renewable energy sources. The Ministry of New and Renewable Energy aims at a capacity addition of about 30,000 MW power during the 12th Five Year Plan from the various renewable energy sources available in the country.
The Policy outlines the following initiatives by the Government to promote solar energy in India:
(a) The National Solar Mission is being implemented which aims at the utilization of solar energy for power generation as well as direct thermal energy applications in the country.
(b) The above mentioned policy creates an enabling regulatory environment through measures like solar specific RPOs under National Tariff Policy, State specific Solar Policies and RPO targets, and REC mechanism.
(c) The Government in this effort is providing fiscal and financial incentives in the form of accelerated depreciation, concessional/ nil customs and excise duties, preferential tariffs and generation based incentives to improve the viability of the solar power generation units.
(d) Capital subsidy is being provided for off-grid/ decentralized solar power generation systems.
(e) A scheme for setting up Grid-connected Solar PV Power projects of 750 MW aggregate capacity with Viability Gap Funding from NCEF is being implemented.
(f) Further, a scheme for promotion of grid-connected roof-top PV systems with a provision for 30% subsidy has also been formulated.
(g) The Government in addition to the above is planning to construct Solar Parks in various parts of the country to achieve cost reductions of solar power generation units through utilization of common infrastructure.
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