Trend Analysis: Govt Funding for Grid Connected Solar Rooftops

However, the ratio of allocation of funds for the grid-connected solar rooftop segment has been declined sharply.

Grid Connected Rooftop Solar

With an aim to promote solar energy in the country, government has taken various significant measures in the past few years including amendments in policies, releasing funds under various schemes for the sector etc.

However, most of the solar power projects in the country have been set up with private investment, as informed by R.K. Singh, the Union Minister of State (IC) New & Renewable Energy, Power and Skill Development and Entrepreneurship, in response to a question in Lok Sabha.

Here’s the small analysis of government funds released in recent four years for the grid-connected solar rooftop segment.

The government has released an aggregate sum of Rs 174.53 crore during the financial year (FY) 2019-20 (as on November 25, 2019) for the grid-connected solar rooftop segment, whereas it released a total of Rs 678.01 crore during FY 2016-17.

The total amount includes funds released for all states along with the various government departments and public sector undertakings (PSUs).

Below is the list of top five states which received the highest share of funding in FY 2016-17 and FY 2019-20 (as on November 25, 2019).

S. No. 2016-17 2019-20 (as on 25.11.2019)
State Amount (in Cr) State Amount (in Cr)
1 Tamil Nadu 69.67 West Bengal 13.38
2 Assam 38.46 Haryana 13.06
3 Madhya Pradesh 31.96 Gujarat 12.10
4 Uttarakhand 25.97 Assam 9.24
5 Maharashtra 23.18 Uttarakhand 7.67

In FY 2016-17, the government provided the highest share of its fund allocation to the states of Tamil Nadu, Assam, Madhya Pradesh, Uttarakhand, and Maharashtra with an allocated amount of Rs 69.67 crore, Rs 38.46 crore, Rs 31.96 crore, Rs 25.97 crore, and Rs 23.18 crore respectively.

On the flip side, in FY 2019-20 (as on November 25, 2019), the Ministry of Power has given preference in issuing funds to the states of West Bengal, Haryana, Gujarat, Assam, and Uttarakhand with allocated amount of Rs 13.38 crore, Rs 13.06 crore, Rs 12.10 crore, Rs 9.24 crore, and Rs 7.67 crore respectively.

However, the ratio of allocation of funds for the grid-connected solar rooftop segment has been declined sharply.

The total allocation of funds for all the states comprised of Rs 71.89 crore for FY 2019-20 (as on 25.11.2019). It had been Rs 343.89 crore for the FY 2016-17.

For the grid-connected solar rooftop segment, the power ministry has allocated Rs 102.64 crore of funds for FY 2019-20 (as on 25.11.2019) for various government departments including SECI. It had allocated Rs 334.12 crore to various government departments including SECI during FY 2016-17.

S. No. Department 2016-17 Amount (in Cr) 2019-20 (as on 25.11.2019) Amount (in Cr)
1 SECI 250 81.81
2 PSU/ Govt Departments 74.74 20.83
3 Others (NFDC) 9.38

Meanwhile, among different government departments, the Solar Energy Corporation of India (SECI) remained on top with the highest share of funding received.

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.