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According to the Federation of Indian Chambers of Commerce and Industry (FICCI), the Union Budget 2022-23 must concentrate on incentivizing technology uptake in the renewable energy (RE) sector through tax breaks and credit guarantees.
The chamber in its pre-budget memorandum cited that it is critical to establish a conducive environment for green technologies in order to further accelerate the realization of promoting renewables and waste management, in which India has played a worldwide leadership role.
China enticed corporations to create green solar technology by offering free land, reduced electricity costs, and low-interest financing. Many other nations that have developed as centres of solar modules and components, such as Malaysia, Taiwan and Vietnam, have done so as a result of massive government subsidies, stated FICCI.
FICCI articulated that the government should apply a concessional tax rate of 15% to companies that invest in renewable initiatives, as well as allow a full deduction for the investment or acquisition of cleantech assets when describing the tax incentives that may be viewed for the advancement and adoption of green technology.
“A credit guarantee plan should be established, primarily to mitigate risk for consumers with poor credit ratings. This will allow such customers to get bank funding for the installation of rooftop solar projects” said the chamber.
The majority of rooftop solar power capacity has been installed in the industrial, institutional and commercial sectors, while the residential market remains nearly underexplored, despite the fact that it is projected that the residential segment can make a significant contribution of around 15% of total rooftop solar throughput.