Solar Panel Manufactures and the Support of The Government

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 Solar energy is the energy that is obtained from the sun, and is a renewable form of energy. Because of its geographical location, our country receives ample sunlight almost throughout the year. India has progressed quite a lot when it comes to generating power using solar energy because of the large amount of sun’s radiation that falls on the landmass throughout the year. In the past few years, it has been observed that the unit costs of solar power have fallen, encouraging more people to go solar for energy generation. The solar panel manufacturers are making the most of this and are also being encouraged by the government to come up with better solutions for the future. So, how is the government supporting them?


Government subsidy for rooftop solar systems
 
The upfront installation cost for the rooftop solar system is usually substantial and most of the population of India cannot afford this cost. The subsidy scheme launched by the Government of India encourages people to make use of this renewable energy and reduce their electricity bills. When there is more demand for solar panels due to the subsidy and other government policies, solar panel manufactures get a good chance to improve their profits too and feel satisfied. You will also be amazed to know that in some cities, the government pays 30 percent of the benchmarked installation cost for rooftop PV systems.

Support of the government for domestic manufacturers

It is a great fact to know that a financial incentive is available for new manufacturing facilities. The Modified Special Incentive Package Scheme offers 25 percent of capital cost subsidy to solar panel manufacturers.  According to the new solar manufacturing policy, the government offers Viability Gap Funding which is a financial subsidy to companies who plan to set up integrated manufacturing facilities. This is done so that these companies can compete with their global counterparts. Also, with the implementation of GST, the tax parity between the domestic and overseas manufactures has been restored.

The application process for the subsidy

The Indian government has issued a priority list for processing subsidy claims. While public institutions, schools, etc are at a higher rank in this list, residential projects hold a lower rank. To promote electricity generation using solar energy, the government of India has simplified the application process for the subsidy. The manufacturers also feel comfortable because the hassle of applying for benefits and paperwork is reduced. Because of such initiatives, both individuals and organizations are being encouraged to generate solar energy at reduced capital costs.

With these favorable developments, it is expected that new players will enter the market. With a favorable policy framework and a booming local market, it is expected that there will be more production of electricity using solar energy in the coming years. When the solar panel manufacturers feel that there is a favorable environment for solar power manufacturing in India, they will compete with global counterparts with confidence. India can generate far more solar energy than is being produced currently if the government extends more support and creates a friendly environment for these manufactures.

Related Post:

Why are solar panel manufacturers in India so popular? - Link

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