Himachal Government Hikes State Subsidy to Rs 6,000/kW for Rooftop Solar

The state government of Himachal Pradesh has proposed to increase the subsidy for grid connected rooftop solar power installations in the state. The move is aimed to encourage the domestic players and households to adopt and install solar power systems. HIMURJA said that the subsidy will be increased from Rs 4,000 for every kilowatt to Rs 6,000.

HIMURJA has also fixed the rates for installations of a rooftop solar power plant. The authority says that for a 1-3 KW rooftop solar plant, it would cost Rs 50,000 for every KW. For an installation that is 3-10 KW, it would cost Rs 48,600 for every KW.

The Central Government also gives subsidies to domestic installers as it has fixed a modest target of 10 MW by 2024 for Himachal Pradesh that needs to be realized through rooftop solar. HIMURJA says, “The Centre offers 40 per cent subsidy on solar panels of 1-3 kw and 20 per cent subsidy on panels of 3-10 kw.”

The renewables share in the energy basked of Himachal Pradesh already dominant, thanks to Hydro energy. The state is coming up with a Swaran Jayanti Energy Policy under which the government is aiming to add about 10GW of renewable energy  by the end of this decade. Chief Minister Jai Ram Thakur has said while presenting the state budget last month that Himachal Pradesh is making efforts to become the first renewable state in India by achieving 100 per cent energy from RE sources. The state is power surplus, and hopes to become a larger power exporter in the years to come.

A mere 2000 million units come from thermal power plants in Himachal Pradesh at present and the government may innovate ways to underwrite thermal obligations and come out of the PPAs. The state is also dominated by small hydro producers, with run of the river projects, even though those projects are churning out power at relatively higher rates today.

The share of solar power is rising in Himachal Pradesh where hydro and geothermal RE is dominant. Recently, SJVN has been asked to develop 400MW solar park in Upper Kinnaur. It’s also preparing a DPR for 800MW Kaza Solar Park in Himachal Pradesh. SJVN has also bagged a contract to develop the first floating solar power project of 15MW in Nangal Pond in Bilaspur district.