More subsidy for rooftop solar projects likely in Raj Budget

Jaipur: The anemic growth in rooftop solar adoption by households is likely to get a fresh fillip if the energy department's proposal to the govt for providing additional subsidies finds a place in the state Budget announcements.
Sources said the department has pitched for state subsidies over and above the central financial assistance to the projects, and the proposal is likely to be announced in the state Budget to be presented on Feb 19.
Despite being the top source of industrial-scale solar projects in the country, Rajasthan has lagged in luring households to put up rooftop plants. Both industry and the state govt attribute the sluggish growth to the free power scheme.
"If people get free power, why would anybody invest in solar? The only way to wean away these households from free power and conventional energy is to make solar rooftop projects almost free with heavy subsidies of around 80%," said Ajay Yadav, president of the Renewable Energy Association of Rajasthan (REAR).
Rajasthan has set a target of 5 lakh households by next year, and the number of projects currently stands at 26,000.
The centre is already providing Rs 60,000 for a two-kilowatt rooftop solar project, which costs about Rs 1 lakh, though the industry estimates it at Rs 1.1-1.2 lakh, given the rise in prices of domestically produced panels.
As per the source, the state govt is planning to announce in the Budget a Rs 20,000 state subsidy, which will be additional to the central assistance, taking the total financial support to Rs 80,000 per two-kilowatt plant, which is almost 80% of the cost.
In a recent informal interaction with the media, state finance minister Diya Kumari said the focus of the state Budget for 2025-26 would be on green initiatives, again confirming the push to move households to solar energy. This will also save the state govt thousands of crores, which it gives under the free power scheme.
Yadav said that people have developed cold feet for solar, anticipating additional state subsidies. He said already 10 states in the country are providing their own subsidy besides the central govt assistance.