Featured in A safe pair of hands – 08-2014

A dysfunctional subsidy

India: The 30% capital subsidy for rooftop PV has not been disbursed for over 18 months. As long as the dysfunctional subsidy is not removed, customers with projects viable without subsidies will defer installing PV. Dustin Zubke, a 2014 Thomas J. Watson Fellow, reports from India.

On June 12, 2014, the Times of India reported that the Ministry of New and Renewable Energy (MNRE) had a subsidy backlog of INR 32 billion ($536 million) of approved and pending applications for decentralized solar projects. The program provides a 30% capital subsidy for on-grid and off-grid solar PV systems smaller than 500 kW as well as a subsidy …

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