Indian Economy News

IREDA launches loan scheme for rooftop solar power projects

New Delhi: The Indian Renewable Energy Development Agency (IREDA) — the government company tasked to promote renewable energy — has launched a new loan scheme in order to promote rooftop solar photovoltaic (PV) power projects.

The scheme will provide loans at the interest rate of 9.9 to 10.75 per cent to the system aggregators and the developers.

The government is also planning amendments to the Electricity Act, 2003, to introduce renewable generation obligation along with raising of renewable power obligation (RPO) in the tariff policy.

Additionally, the government will introduce stringent penalties if there are any violations of such obligation. Union Minister of State (IC) for Power, Coal, New & Renewable Energy Piyush Goyal launched the scheme here on Tuesday during a workshop on Grid Connected Solar Rooftop.

While delivering his address, the minister assured all participants that the intricacies of each and every renewable energy plan is well thought of in advance for achieving energy security for the nation.

He also said that the target of generating 1,75,000 mW of renewable energy (RE) by 2022 should be taken as a mission for ensuring energy security of the country.

Speaking on the occasion, Cabinet Secretary Pradeep Kumar Sinha pointed out that policy and regulatory interventions were necessary for the country to fulfil such targets.

Consequently, Sinha proposed that there will be amendments to the Electricity Act, 2003, introducing renewable generation obligation. He added that such obligation will also be raised in the tariff policy.

Highlighting importance of evacuation of RE power, Sinha suggested that states should socialise cost of transmission within the state itself to improve renewable capacity. He further added that, in order to popularise such programmes, state regulators have to fix the tariff for RE power which goes to grid.

Upendra Tripathy, Secreatry, Ministry of New and Renewable Energy, said that the government is also trying to get 2 billion dollars from World Bank and Asian Development Bank (ADB) towards rooftop projects which can be passed on to the banks to enable them to finance the projects on soft rates of interest to the agencies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.