A tax incentive for purchasing rooftop solar panels is being considered by India’s finance minister Arun jaitley, according to the country’s power minister Piyush Goyal.
Income tax incentives for buying rooftop panels were suggested in a Q&A with Goyal published on his Facebook page last week, who responded: “We will discuss the suggestion with finance minister Arun Jaitley who has special interest in green energy.
"It is good suggestion. People get some tax concession.
“There should be some cut in the interest rate (on loan for solar panel).”
Goyal also said that the Indian government is in discussions with banks to provide easy loans for renewable energy schemes such as rooftop solar installations. Furthermore home loans could include finance for rooftop solar in the future.
When asked if the government plans to bring down the cost of rooftop solar panels, Goyal replied: “Absolutely. We are hoping to scale the demand for rooftop solar, and in the next seven years - we have plans to roll out 40,000MW for rooftop solar, which is massive. Concurrently, we will start procurement through reverse bidding which should help bring down the prices. To what extent the prices will come down, I cannot say at this point.”
Goyal also cited potential changes in construction rules to promote renewable energy and energy conservation in large-scale, commercial, industrial and residential projects.
He said: "Urban Development Ministry will give some concession for making green buildings and ensure additional incentives for them. They may get concession in terms of making extra floors or get tax rebate.”
Under India’s target of reaching 100GW solar by 2022, the government has earmarked 40GW rooftop, 40GW utility scale, and 20GW of small-scale systems under the Entrepreneurship scheme, which is still being finalised.
A PV Tech analysis published today looks in detail at the roadmap to India’s 100GW target.