Monday, June 16, 2014: The MNRE scheme was launched in 2010 under the Jawaharlal Nehru National Solar Mission with an aim to encourage installation of solar water heaters across the country and deploy 20,000 MW of grid connected solar power by 2022 in the process.
The Solar Thermal Federation of India (STFI) has appealed to the Ministry of New and Renewable Energy (MNRE) to release the unpaid subsidies of around Rs 3,500 million that it owes to direct channel partners and manufacturers of solar water heaters. The same has been long pending since 2012.
“About Rs 500 million of subsidy remains unpaid for the year 2012-13 and Rs 3,000 million for 2013-14. Going by the market growth, the subsidy liability will grow additionally to about Rs 5,000 million,” Jaideep Malaviya, secretary general of STFI was quoted by Hindu Business Line as saying. The MNRE scheme was launched in 2010 under the Jawaharlal Nehru National Solar Mission with an aim to encourage installation of solar water heaters across the country and deploy 20,000 MW of grid connected solar power by 2022 in the process. The government had announced a subsidy of 30 per cent on solar water heaters sold through the direct channel partners (DCPs) across the country. These DCPs were directed to sell their solar panels and other components at subsidised rates and the subsidy amount was to be reimbursed to them later.
However, the government has failed to reimburse the DCPs. The lack of funds has forced manufacturers to lower or stop production of solar water heaters all together. “Demand has been growing at a CAGR of 35 per cent so it’s not that demand has come down’, but the fact is we don’t have the money to produce more,” M D Akole, Chairman of STFI was quoted as saying.
