The Union Budget 2015 has been a disappointment for solar retailers and consumers in the city, as no tax exemptions or reductions have been announced for green energy.
Though an ambitious target of 1,75,000 mega watt (MW) has been planned in the renewable energy sector — solar, wind, biomass and small hydro — specialists said it will be difficult to achieve unless authorities see the link between energy conservation and clean energy by providing subsidy and tax reductions.
For instance, the manufacturers of various LED lighting fixtures point out the discrepancy in value added tax (VAT) between CFL and LED bulbs.
According to R. Muralikrishnan, CMO, Concept 4E, the need of the hour is reducing VAT on LED lighting, which is 14.5 per cent, whereas the environment-damaging CFL is taxed at only five per cent.
P. Ashokkumar, president, Tamil Nadu Solar Energy Developers Association, citing the ambitious plan to generate one lakh mega watt of solar power, said under the circumstances, where 30 per cent subsidy provided by the ministry of new and renewable energy does not reach consumers, the response to installing rooftop plants is poor. In response to such complaints, the Central government had proposed to bring down subsidy to 15 per cent with the assurance of disbursing it properly or converting it into interest subsidy.
He said, “At present, loans for installing rooftop solar plants are disbursed at interest rates charged for home loans. The Central government should advise banks to provide interest rates that are attractive for commercial and domestic customers.”
The only silver lining for renewable energy is the allotment of Rs. 75 crore for producing electric cars, experts said on Saturday.
