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Central govt clears pending subsidies for Chandigarh's Solar Plants

2023-07-26

After a lengthy delay of over four years, the Central government finally gave its approval on Monday to clear the pending subsidy dues worth Rs 32.5 million for residents who had installed rooftop solar power plants back in 2019.

The Chandigarh administration received a communication, informing them that the Central government had sanctioned the long-awaited subsidy payments, which were initiated and forwarded by the Chandigarh Renewable Energy Science and Technology Promotion Society (CREST).

Due to a shortage of funds, CREST officials had been unable to make the payments to residents of Chandigarh who had installed solar power plants, leading to a backlog of 421 cases where people were still waiting for their entitled subsidies.

In August 2019, the Central government had decided to boost the adoption of green energy in Chandigarh by increasing the subsidy amount to 40 per cent for residents installing solar plants up to 3 kWp on their rooftops. The CREST confirmed that the pending subsidy amount would be disbursed starting next month.

A senior official from CREST spoke to media affirming that the subsidy would be released to eligible homeowners during the first week of August, as the Central government had cleared Rs 32.5 million for this purpose.

This decision came as a great relief to numerous residents who had been persistently visiting the CREST office for the past four years, seeking their promised subsidies without success. One such resident from Sector 33, Chandigarh, expressed her gratitude, sharing how she had installed a solar power plant in September 2019, paid around Rs 1.5 lakh for it, and was expecting a subsidy of approximately Rs 60,000. Despite multiple visits to CREST, she had not received any money until now. However, with the recent announcement, she felt relieved and hopeful about finally receiving her subsidy.

The new RESCO (Renewable Energy Services Company) model was introduced in Chandigarh, making it the first among all states and union territories in India to adopt it. Under this model, a third party builds, operates, and transfers the solar power plant to consumers while covering the installation and commissioning costs. The excess power generated from these plants is supplied to the common grid after fulfilling the homeowner's consumption needs.

As per the RESCO model's terms and conditions, house owners provide nearly 500 sq ft of rooftop space for a 5kWp solar plant installation. They, in turn, receive electricity at the rate of Rs 3.23 per unit during the build-operate-transfer period.

In January of the current year, the JERC (Joint Electricity Regulatory Commission) granted approval to CREST's petition for the RESCO model, designating CREST as the executing agency for renewable energy projects under the Department of Science and Technology, UT.

The Ministry of New and Renewable Energy had set an increased solar power generation target for Chandigarh, raising it from 69 MW by 2022 to be achieved to 75 MW by August 15, 2023. As of now, the UT has achieved a generation of approximately 55 MW.