MNRE Revises The Capital Subsidy For Off-Grid And Decentralised Solar Applications

(This post originally appeared on EAI Blog – It was contributed by Madhavan Nampoothiri, Founder & Director of RESolve Energy Consultants on 24 February 2011.)
The Ministry of New and Renewable Energy(MNRE) has revised the benchmark cost of the solar PV system and the capital subsidy w.e.f 2011. At present(2010-11), the benchmark cost is Rs. 300/Wp(with battery) and Rs. 210/Wp(without battery) for solar PV off-grid and decentralised applications and the subsidy limit is Rs. 90/Wp(with battery) and Rs. 70/Wp(withough battery).
Under the revised guidelines, there is about 10% reduction in these numbers. From April 1, 2011, the benchmark cost will be Rs. 270/Wp(with battery) and 190/Wp(without battery). The corresponding reduced capital subsidy will be Rs. 81/Wp(with battery) and Rs. 57/Wp(without battery) in general areas.
In Special category states/North East states, the subsidy will be limited to Rs.243/Wp(with battery) and Rs. 171/Wp(without battery). This represents a 90% capital subsidy from the benchmark cost.
The revised guideline is available here.