Green Investing's Blog | India’s Feed-In Tariff System for Renew. ::: Central Electricity Regulatory Commission ::: India to adopt feed-in tariffs. India's Central Electricity Regulatory Commission (CERC), based in New Delhi, has announced new regulations that include a system of feed-in tariffs (FiTs) for renewable energy, incentivising both wind and solar energy. According to the National Action Plan on Climate Change, five percent of electricity generation in India is to come from renewable sources by 2010, and will increase one percent per year for the next 10 years. The announcement from CERC on FiTs strengthens India's position in the run up to the climate change negotiations in Copenhagen. With China's introduction of FiTs for wind power this year and other recent advancements for the clean energy industry announced by the Government, Asia's two economic giants seem to be getting ahead of the game in comparison to many in the developed world, including the USA, Canada and Australia.
Neither the USA nor Canada has a climate change action plan, or a national goal of renewable energy in either nation's electricity supply. Feed-in-tariff and solar energy. Solar power in India had found it difficult to attain commercial viability for quite some time. It had generally been pushing forward in niche areas like rural electrification, which of course is justifiable in areas deprived from grid connectivity. Certainly alternative viable options to provide power to the remote rural population are an essential necessity for raising living standards. However, inhibitions about the potential of solar power because of its high cost seem to be slowly eroding and right steps are being taken by the government for boosting growth. After the government of India announced feed-in-tariff (FIT) to the maximum of Rs 15/kwh in case of grid connected systems in March 2008 West Bengal became the first state to declare FIT at Rs 11/kwh and other states are soon set to follow.
The aspirants to invest in solar power include entrepreneurs from all strata from Ambani group down to ordinary investors.