Uttar Pradesh government has announced plans to provide an additional subsidy of Rs 15,000 per kW for the development of residential rooftop solar projects in the state. In case of a single project having maximum capacity of 3 kW, the subsidy amount will be capped at Rs 30,000 for the entire project.
According to Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), this subsidy will be in addition to the 30 per cent central financial assistance already being provided by the Ministry of New and Renewable Energy (MNRE).
Through this initiative, the state is looking to increase the affordability of installing rooftop solar PV systems for residential consumers. Over the past year, Uttar Pradesh has made considerable efforts to increase both utility-scale and rooftop solar capacity in the state. In December 2017, the Uttar Pradesh had approved its draft Solar Policy 2017. As per MNRE statistics, Uttar Pradesh had cumulative rooftop solar installations of 55 MW in October 2017.
Lately many Indian states have come out with additional subsidies for promoting rooftop solar installations on residential and government buildings. Recently Himachal Pradesh announced additional subsidy amounting to 10 per cent of the total cost of the plant (Rs 4,000 per kW) to residential consumers. However, many developers have opposed such subsidy provisions due to their experience with delays or non-payment of subsidies by government agencies.