Solar Pump Yojana Updates: Govt is Offering 40% Subsidy for Power Plants with 3 Kilowatt Capacity; Subsidies to be released in Two Weeks

In midst of the nationwide lockdown, the government is gearing up for implementing agriculture Solar Pump across the nation and the last date for the installation of solar plants in private residences has been extended to March 2021. As per reports, the state government of Punjab has recently released a notification that it is going to release all pending subsidies in the next two weeks.

All pending subsidies for the same will be released in two weeks which were delayed due to lockdown, the Chandigarh Renewal Energy and Science and Technology Promotion Society (CREST) has announced recently. 

Moreover, Finance Minister Nirmala Sitharaman has announced in her Budget speech that the PM KUSUM scheme will be expanded to cover 20 lakh farmers across the nation. However, due to lockdown, the operation is under halt.

Phase 2 of Installation Delayed due to Lockdown

As per reports, CREST CEO Debendra Dalai said, “Under phase 2 of installation, which comprises all solar plants set up after May 2019, the subsidies were delayed due to the lockdown. There are 650 such cases out of which we have released subsidies of around 400 cases. I am currently approving around 50 cases a day so the remaining subsidies will be released within the next two weeks.”

Installation Mandatory of Rooftop Solar Power Plants in new Properties Measuring 500 square yards

As per reports, the administration had made installation mandatory of rooftop solar power plants in new properties measuring 500 square yards and above and in group housing societies in 2016. As per Dalai, there are around 7,200 such residential areas in the city. About 3,000 of them are yet to apply for permissions for setting up the plant.

Moreover, Dalai added, “The date had to be extended to give some time to these people to apply for as well as to set up the plant”.

The government has also proposed a Renewable Energy Service Company (RESCO) model (which provides energy to the consumers from renewable energy sources, usually solar photovoltaics and wind power) for setting up power plants due to which installation costs would come down, Dalai added.

Govt to Release 40% Subsidy for Power Plants with a Capacity 3 Kilowatt

Moreover, the residents who had installed the plants, the have been waiting long for subsidies. CREST releases a subsidy of 40% for power plants with a capacity 3 kilowatt (kW).

The “After spending over Rs 4 lakh on the solar project, it is disheartening to not receive the subsidy. During the Covid-19 epidemic the government resident welfare association (RWA), Ravinder Singh Gill said, should make it a priority to pay back what they owe us. “

“We had held a meeting with CREST in January 2020 and were assured that around Rs 5 crore in funds had been received by CREST for this payment, so I hope we receive it soon”, said Sandeep Bhalla, the Federation of Sector Welfare Association Chandigarh.

Moreover, Crest has set a target of producing 69 megawatts (MW) power in the city by 2022, while currently, the city produces over 30 MW. Of this, about 12 MW is from residential areas.