The Indian government has addressed concerns regarding the financing of solar energy projects, assuring stakeholders that there is no freeze on lending to the sector. This clarification comes after reports emerged of an oversupply of solar panels, leading to worries about the financial viability of projects. The Ministry of New and Renewable Energy (MNRE) has stated that banks and financial institutions have not been instructed to stop lending to solar projects, and that the government remains committed to achieving its renewable energy targets.
The concerns arose when the government announced that it would impose a 25% safeguard duty on imported solar panels to protect domestic manufacturers. This move led to a surge in imports, resulting in an oversupply of solar panels in the market. As a result, prices plummeted, making it challenging for project developers to secure financing from banks and financial institutions.
However, the MNRE has clarified that the safeguard duty is intended to promote domestic manufacturing, not to stifle the growth of the solar sector. The ministry has assured that it is working closely with banks and financial institutions to ensure that solar projects continue to receive funding. The government has also announced plans to provide incentives to domestic manufacturers to boost their production capacity and reduce dependence on imports.
The Indian government has set an ambitious target of achieving 100 GW of solar power capacity by 2022, and the solar sector has been a key driver of growth in the country’s renewable energy sector. The government’s clarification on solar financing is expected to alleviate concerns among stakeholders and provide a much-needed boost to the sector.
In a statement, the MNRE said that it is committed to promoting the growth of the solar sector and is working to address any challenges that may arise. The ministry has also urged project developers to work closely with banks and financial institutions to ensure that projects are viable and financially sustainable.
Overall, the government’s clarification on solar financing is a positive development for the sector, and is expected to help India achieve its renewable energy targets. The move is also expected to promote domestic manufacturing, reduce dependence on imports, and create jobs in the solar sector. With the government’s support, the solar sector is likely to continue to grow and play a key role in India’s energy mix.