Pre-Budget Expectations by Mr. Kunwer Sachdev, Managing Director of Su-Kam
India is a country that has tremendous solar energy potential. As the nation is facing an increasing demand – supply gap in energy, it is important to tap the solar potential to meet the energy needs. So, from this budget solar power industry expects that the Government should offer more benefits to the individual customers and end-users in terms of tax rebate etc. to encourage them to switch to solar power back-up systems. The Solar power equipment (like solar invertors, UPS, charge controllers) should be brought under “zero” VAT/CST regime similar to solar panels, all across the country. We hope that the 80% accelerated benefit should be extended to individual taxpayers as well for installing rooftop solar systems and other solar energy equipment.
Further, we hope that the Retail lending facility through commercial banks for buying solar energy equipment should be made as easy as getting a consumer loan, in fact solar energy sector should be given of priority lending status. The interest paid on loans used for solar energy systems should be allowed as deduction from income while arriving (at) income tax for individual taxpayers as well.
The use of solar energy must be made mandatory for new construction through building by-law. We hope that the RPO should be implemented strictly by imposing penalties on non-implementation. All forms of tax, including CST, VAT and service tax should be waived off on the grid connected and off grid solar energy projects using indigenously manufactured system for a period of five years.