SUBSIDIES IN THE RE SECTOR

Encouraging RE installation in the state, till now, the country’s policies have provided various benefits in the form of subsidies, generation based incentives, viability gap funding, etc.As the installed capacity of solar and wind energy has been increasing consistently, the government has consistently decreased the incentives to renewable energy.

Now that the prices of electricity generated from renewable energy has come very close to the price of electricity generated through fossil fuel based sources, almost achieving grid parity, the government is considering removal of subsidies and incentives given to installation and generation from renewable energy. This change may take place in the coming financial year, as per experts. This development has been reported by the Economic Times.

The wind tariff recently dropped down to Rs 2.43 per unit in an auction held by GUVNL in the month of December 2017 and solar tariff dropped down to Rs 2.65 per unit in September.