Minister of New and Renewable Energy Dr Farooq Abdullah informed the Rajya Sabha that there is no requirement of getting “go ahead” from the Government of India for setting up solar projects. There are some schemes under which some support is provided as per guidelines contained therein. The Government is encouraging setting up solar energy projects.

The Government has brought out schemes for setting up grid connected solar power projects and to promote various off grid applications. In addition, the Government notified reduced customs duty and exemption from excise duty on all items of machinery required for the initial setting up of a solar power generation project or facility. The Government provides capital subsidy upto 30% of the benchmark cost and / or soft loan at a rate of 5% interest to support deployment of various off grid solar applications. India is emerging as one of the leading countries in the field of solar power.

The total installed capacity of solar power projects in the country has increased from 2 MW in 2009 to over 900 MW during 2012. Under JNNSM, 20,000 MW capacity addition of solar power projects is envisaged by 2022.