Another condition stipulates that the DISCOMs should comply with the ambitious rooftop target specified by MNRE. This would be impossible for any DISCOM to comply with,” the Bridge to India statement mentioned.In a new policy move, the ministry has announced financial incentives for DISCOMs to support rooftop solar installations. “Indian government’s aim is to grow rooftop solar to 40 times the current installed base of 1 GW in a little over five years. This is a formidable target and grid connection is one of the main challenges affecting the growth of this market (refer). The view is that financial support for DISCOMs should continue until they can adapt their business models and find new sources of revenue from distributed energy generation.However, for the policy to be effective, MNRE needs to make sure that that eligibility conditions and funds disbursement process is not unduly restrictive.

Source: Economic Times January 09, 2017 14:39 UTC