New Delhi: The announcements made in the Budget to promote use of cleaner energy will direct significant investment into the solar energy sector, Moserbaer Group chief financial officer Yogesh Mathur said.
“The government has been clearly consistent and has taken measures to support various technology and renewal energy sectors. The Budget is testimony to that as there is provision of a Clean Energy fund, for driving investment towards clean energy,” Mathur told PTI.
The Clean Energy fund could see several thousand crore rupees being mobilised on an annual basis and a significant chunk of this would go into promoting investment into the solar sector, he added.
Finance minister had also announced a concessional duty of 5% on equipment and appliances required “for initial setting up of photovoltaic and solar thermal power generation” while exempting those from central excise duty.
“Overall, the custom duty reduction is to basically promote the sector and make it more competitive,” Mathur said.
Solar equipment maker Moser Baer expects that the sector will now see major investments for setting up large solar farms.
“The cost of solar energy per unit is still high compared to conventional sources of energy but with advancing technology, that is coming down. With increasing investments in the sector and government support, it will become cheaper,” Mathur said.
The cost per unit in coal based power generation (base load) is approximately in the range of Rs4-9, while the cost per unit in solar power generation is around Rs15-17.
Moser Baer has a capacity of about 120 MW units, which is expected to go up to 240 MW in the next fiscal.