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Policy Framework and Key Incentives for RE Technologies

Technology Policy Framework Key Incentives

1 Wind PowerFiscal and financial incentives import duty on specified wind turbine Parts

80% accelerated depreciation

Customs and Excise duty relief

2

Grant for setting up projects in North Eastern States

3 Biomass Power

subsidy for commercial biomass power projects

4

Si

No

Wheeling, banking, Third party sale, Buy-backfacility by statesCapital subsidies and sales tax incentives incertain states

Loans through IREDA (Indian Renewable Energy Development AgencyLimited )

Small HydroPower

Fiscal and financial incentives Detailed project report preparation at discounted price

Wheeling, banking, Third party sale, Buy-backfacility by states

Capital subsidies and sales taxFinancial support for renovation, modernization and capacity up-rating of

old SHP (Small Hydro Potential) stationsincentives in certain states Financial support for development/upgradation of water mills

Soft loans from IREDA for setting up of SHP projects upto 25 MW capacity

Enactment of favorable policy regimes at thestate as well as the Central levels

Buy-back/Wheeling/Banking of generatedelectricity by the SEBs

Upto 3% interest subsidy for biomass/bagasse cogeneration (commercialprojects)

Incentives in the form of sales tax exemptions,equity and grants, etc.

Capital subsidy for cogeneration projects in Joint

Venture model/IPP ( Independent Power Project ) mode incooperative/public sector sugar millFinancial assistance under the National BiomassResource Assessment Program (NBRAP)

Energy fromWaste

Easy allotment of land, supply of garbage andfacilities for evacuation, sale and purchase ofpower to encourage setting up of waste-to-energy projects

Commercial Projects: Financial assistance as interest subsidy for reducingrates of interest

Demonstration Project: Financial assistance on capital cost of the project

Power Generation at Sewage Treatment Plants:

Financial assistance on incremental cost for Generation of power from thebio-gas

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5

No specific conditions for JV formation

6 Biogas

Central subsidy to users

Organizational and infrastructure

SolarPhotovoltaics

MNES financial incentives for solar PV grid

EOU to set up a manufacturing plant connected power projects

Technology transfer for the manufacture of

silicon solar cells and and PV Systems

IREDA financial package for solar photovoltaic (power generation

systems)MNES(Ministry of Non- Conventional Energy Sources) Financial Incentivesfor Solar Photovoltaic Systems

Special incentives are available for turnkey

Remuneration to SEWs entrepreneurs in rural areas

Dealership support to Fair Price ShopsLoans from commercial and cooperative banks for setting up of biogasplants under Agricultural Priority Area

Automatic refinancing by NABARD( National Bank Of Agriculture and RuralDevelopment)

support to implementing agencies

Technical and training support

Source: Ministry of New and Renewable Energy, India.