India starts process of selecting solar plants for incentives

Indian government on Monday has started the process of selecting rooftop and small solar projects that would become part of the National Solar Mission and be entitled for subsidies on capital expenditures, interest and for generation-based incentives.
The plan is to take up projects with a capacity of 2 megawatts or lower that are designated for completion on or before March 2013. The capacity proposed to be set up through this path is 100 megawatts.

Bharat Bhargava, director at the ministry of new and renewable energy said that the payout for generation-based incentives will be trivial this year and around 800 million rupees ($17 million) next financial year, when many of these projects would be operational. The incentive could cross 1 billion rupees as more projects are commissioned.

“The limit of 100 megawatts will guarantee that the subsidy element remains capped and we don’t want to lock in large capacity at this price,” he said in an interview.

The government today opened access to the online application forms. Actual registration of projects will begin on July 15 and the initial shortlist will be announced by Aug. 16.

Each entitled state will have a limit of 20 megawatts of capacity that can be incorporated in the mission. Many states are in the process of short-listing projects that they would want to be included in the mission. Registration with the state is a prerequisite for inclusion.

The government of Delhi for instance has invited project proposals for registration as has the government of Bihar.