Centre’s condition for availing subsidy in setting up solar power plants leading to high investment, says Bhatti
Telangana's Energy Minister Mallu Bhatti Vikramarka stated that federal subsidy conditions for solar power plants are driving up investment costs. He noted that the requirement to use indigenous equipment makes projects significantly more expensive than those using imported materials.
Why it matters
The conflict between domestic manufacturing mandates and project cost-efficiency highlights the challenges in scaling renewable energy infrastructure in India.
Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka told the Assembly on Thursday that the conditions set by the Centre for availing subsidy or Viability Gap Funding (VGF) for establishing solar power plants has become a major impediment in bringing down the investment cost.
Replying to a question on establishing floating solar power plants on reservoir waters, he said that the cost of setting up such plants was ₹1 crore per megawatt higher compared to the ground-mounted plants. (The investment for setting up ground-mounted solar power plants in the country is ranging from ₹3.8 crore per MW to ₹5 crore per MW and that for floating plants ₹1 crore per MW more.)
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