Benefit of Excise Duty Exemption Provided for Renewable Energy Equipment Including Solar

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The Minister of New and Renewable Energy, Dr. Farooq Abdullah Informed Rajya Sabha today that the Government has announced a National Manufacturing Policy which recognizes the need to launch programmes to build national capabilities in sectors of strategic significance that include solar energy. The Government has already launched the Jawaharlal Nehru National Solar Mission (JNNSM) in January 2010 for rapid diffusion of solar energy across the country through various measures that include creation of favourable conditions for developing solar manufacturing capability. Benefit of excise duty exemption is being provided for most renewable energy equipment including solar. The Government has also stipulated that Solar PV Cells/ modules used in grid connected solar power projects taken up under Phase-I of the JNNSM, should be manufactured in the country if based on crystalline silicon technology.

As per available information, domestic production of solar PV modules based on crystalline silicon technology during the year 2011 was around 300 MWp. Further, a total capacity of 268 MWp of Grid- connected Solar PV power plants have been set up under JNNSM so far (as on 31.10.2012), of which plants with 120 MWp aggregate capacity are using domestically produced module, which corresponds to about 40% of the domestic production. Off-grid solar PV systems with aggregate capacity of 31 MWp have also been deployed under JNNSM so far (as on 31.10.2012), of which 99% are using domestically produced modules.

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