Government subsidies for off-grid renewable energy projects in India

biogas plant

Greentech Lead India: Off-grid solar energy systems –both photovoltaic and thermal – in India can earn subsidy of 30 percent of project cost and / or 5 percent interest bearing loans. For solar light through NABAAD, RRD and other commercial bank 40 percent subsidy is available.

The Government of India is offering subsidies ranging from Rs. 2,100 to Rs. 14,700 per biogas plant at various states. For example, biogas plants in North East region states (except plain areas of Assam) can fetch a subsidiary of Rs. 11,700 to Rs.14,700 per plant depending on capacity of plant and CDM benefits availed.

Biogas plants in plain areas of Assam are given subsidies ranging from Rs.9,000 to Rs.10,000 per plant while biogas plants in J&K, Himachal Pradesh, Uttarakhand (excluding Terai region), Nilgiris of Tamil Nadu, Sadar, Kurseong and Kalimpong sub-divisions of Darjeeling, Sunderbans, A&N Islands are given Rs.3,500 to Rs.10,000 per plant as subsidy.

Rest of the Indian states are given subsidies of Rs.2,100 to Rs.8,000 per biogas plant depending on capacity of plant and CDM benefits availed.

Subsidies are also available for biomass gasifier systems, water mills and small aero-generators and hybrid systems.

Special category states covering NE, Sikkim, J&K, HP and Uttarakhand get subsidy of Rs. 18,000 / kW while other states get a subsidy of Rs. 15,000 / kW.

Small aero-generators and hybrid systems can fetch up to Rs.1.00 lakh and Rs.1.50 lakh per kW for commercial and non-commercial beneficiaries respectively. Higher support of Rs.2.25 lakh per kW is available for projects in NE Region States Sikkim and Jammu & Kashmir.

Rs.0.35 lakh is available as subsidiary per watermill for mechanical application while Rs.1.10 lakh per watermill is available for electrical application.

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