Madhya Pradesh has released its “Renewable
Energy Policy for Decentralized Renewable Energy Systems, 2016” after
receiving cabinet approval in Bhopal on Friday, September 23. The policy is expected to drive the growth of the
rooftop solar segment in the state.
Of the total of 40 GW of rooftop solar goal set by the Ministry of
New and Renewable Energy (MNRE), Madhya
Pradesh has allotted an installation target of 2.2 GW of rooftop solar by 2022.
According to Mercom’s India Solar Project
Tracker, cumulative solar installations in the state come to 867 MW to date.According to the policy document, renewable
energy systems installed under this policy will not be considered
“construction” and therefore, “would not attract any additional liability of
property tax for installation of [renewable energy] systems on their rooftops
or premises.” Under the Madhya Pradesh Value Added Tax (VAT) (Amendment) Act, 2009,
the equipment purchased for installation or repairs of renewable energy systems
will be exempt from the VAT and entry tax.
Mercom’s sources at Madhya Pradesh Urja
Vikas Nigam Ltd. (MPUVNL)
stated that the state government will
provide a 30 percent subsidy to users installing on their own rooftops or land.
Installations on government buildings are expected to get a subsidy of 45 to 50
percent. They also added that with three cities in the state being selected for
development as smart cities, there will be several off-takers for the solar
rooftop systems as smart cities need to use solar energy to satisfy at least 10
percent of their total power consumption in the initial stage.
Formal notification of the policy is
expected by September 29, 2016.