In India’s rapidly evolving clean energy landscape, government incentives for renewable energy continue to play a crucial role in driving adoption and innovation. As we are in 2024, these incentives are more important than ever in reducing the cost of implementing renewable energy solutions. However, many people remain unaware of the full range of renewable energy incentives available in India. In this comprehensive guide, we’ll explore 15 key government incentives that you might be overlooking in 2024, potentially leaving money on the table in your renewable energy journey.
1. National Green Hydrogen Mission
Launched in 2023, this mission aims to make India a global hub for green hydrogen production and export.
Key points:
- ₹19,744 crore allocated for the mission
- Target of 5 million tonnes of green hydrogen production by 2030
- Incentives for electrolyzer manufacturing and green hydrogen production
2. PM-KUSUM Scheme
This scheme continues to support the installation of solar pumps and grid-connected solar power plants for farmers.
Benefits:
- Extended to 2026 with enhanced targets
- Now includes solar tree installations in farmlands
- Increased subsidy for North-Eastern States up to 40%
3. Rooftop Solar Programme Phase-III
The programme promotes the installation of solar panels on rooftops with updated guidelines.
Details:
- Simplified process for residential installations
- Integration with smart meters for better monitoring
- Enhanced subsidies for residential sectors in certain states
4. Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules
This scheme has been expanded to boost domestic manufacturing of solar PV modules.
Highlights:
- Additional allocation of ₹19,500 crore announced in 2023
- Focus on advanced technologies like perovskite and tandem cells
- Aims to establish India as a solar manufacturing hub
5. Green Energy Open Access Rules
Recent amendments aim to further promote open access to green energy for consumers.
Impact:
- Reduced minimum limit for green energy open access to 50 kW
- Standardized banking provisions across states
- Promotes corporate procurement of renewable energy
6. National Mission on Advanced Energy Storage Technologies
Launched in late 2023, this mission focuses on developing and manufacturing advanced energy storage systems.
Advantages:
- ₹10,000 crore allocated for R&D and manufacturing support
- Covers various technologies including solid-state batteries and flow batteries
- Aims to reduce dependency on lithium-ion imports
7. Offshore Wind Energy Development Scheme
This new scheme aims to harness India’s vast offshore wind potential.
Key features:
- Target of 10 GW of offshore wind capacity by 2030
- Viability Gap Funding for initial projects
- Focus on developing port infrastructure for offshore wind
8. Waste to Energy Programme
The programme now includes more types of waste and advanced technologies.
Potential benefits:
- Increased Central Financial Assistance for biogas and RDF projects
- Integration with Smart Cities Mission for Urban Waste Management
- Promotion of new technologies like plasma gasification
9. National Bioenergy Programme
This comprehensive programme replaces and expands previous biomass initiatives.
Examples:
- Covers biomass power, biogas, and bio-CNG projects
- Enhanced subsidies for projects in rural and agricultural areas
- Promotes the use of agricultural residues to prevent stubble burning
10. Energy Storage Obligation (ESO)
Introduced in 2023, ESO mandates a certain percentage of energy storage for large consumers and distributors.
Benefits:
- Creates demand for energy storage solutions
- Complements renewable energy integration
- Phased implementation starting with 1% in 2024, increasing annually
11. Green Credit Programme
This innovative programme allows entities to earn tradable credits for environmentally beneficial actions.
Key points:
- Covers actions like afforestation, sustainable agriculture, and renewable energy generation
- Creates a market mechanism for environmental conservation
- Can be used to meet various regulatory requirements
12. Renewable Energy Bundling Scheme
This scheme mandates the bundling of renewable energy with conventional power for distribution companies.
Details:
- Aims to reduce the overall cost of power
- Promotes the integration of renewable energy into the grid
- Phased increase in the percentage of renewable energy in the bundle
13. Green Hydrogen Consumption Obligation (GHCO)
Similar to RPO, GHCO mandates the consumption of green hydrogen in certain industries.
Advantages:
- Creates assured demand for green hydrogen
- Focused on hard-to-abate sectors like steel and fertilizers
- Gradual increase in obligations from 2024 to 2030
14. National Clean Air Programme (NCAP) – Renewable Energy Integration
The NCAP now includes specific provisions for renewable energy to combat air pollution.
Benefits:
- Additional incentives for renewable energy projects in polluted areas
- Integration of air quality improvement with renewable energy targets
- Promotes decentralized renewable energy solutions in urban areas
15. Electric Vehicle (EV) Charging Infrastructure with Renewable Energy
This initiative promotes the use of renewable energy for EV charging infrastructure.
Examples:
- Additional subsidies for solar-powered EV charging stations
- Mandate for renewable energy use in public EV charging infrastructure
- Integration with smart grid initiatives for efficient power management
By leveraging these updated government incentives for renewable energy, businesses and individuals in India can significantly reduce the cost of transitioning to clean energy solutions in 2024. It’s important to note that these incentives may continue to evolve, so always check the latest information from official sources.
Research Data:
According to the latest report by the International Energy Agency (IEA), India is projected to add over 200 GW of renewable energy capacity between 2023-2028, driven by supportive policies and improved economics. The full report can be accessed here: https://www.iea.org/reports/renewables-2023
A recent study by the Council on Energy, Environment and Water (CEEW) predicts that India’s renewable energy sector could create over 5 million jobs by 2030, considering the latest policy developments. The full report is available here: https://www.ceew.in/sites/default/files/CEEW-NRDC-SCGJ-indias-renewable-energy-sector-to-employ-one-million-people-by-2030-27jan22.doc.pdf
How Reiconnect Can Help
At Reiconnect.online, we understand that navigating the complex and ever-changing landscape of renewable energy incentives in India can be challenging. Our comprehensive B2B platform connects you with industry experts who can help you identify and maximize the incentives available for your specific project in 2024. We provide:
- Real-time updates on government incentives across different states in India
- Connections to financial advisors specializing in the latest renewable energy projects
- Advanced tools to calculate potential savings from various incentive combinations
- A marketplace to source cutting-edge equipment and services for your renewable energy projects
By leveraging our platform, you can streamline your renewable energy journey, from initial planning to project completion, all while ensuring you’re taking full advantage of the latest government incentives for renewable energy available in India.
Don’t miss out on these opportunities – explore the full range of renewable energy incentives and let Reiconnect.online help you maximize your clean energy investments in India in 2024 and beyond.
