The Haryana government has exempted solar devices, equipment or parts used in installation of solar power projects from Value Added Tax (VAT), to encourage entrepreneurs set up manufacturing of these items in the state.

Solar devices exempted from VAT includes solar lanterns, solar home systems, stand-alone street lighting systems, solar water heating systems, solar water pumping systems, solar cooker boxes and dish type, solar chargers or inverters and solar photovoltaic modules.

Besides, solar collectors, solar dishes, solar inverters or power conditioning units, energy meters and alternators purchased for the installation of solar power generation plants, both rooftop and ground-mounted, and spare parts would also be exempted from VAT.

A notification in this regard had been issued on May 8, 2017, Principal Secretary, New and Renewable Energy Department, Ankur Gupta, said here today.

Gupta said that the state government is giving subsidy at the rate of 30 per cent of the benchmark cost with a limit of Rs 20,000 per KWP for certain categories of the buildings for setting up of grid-connected rooftop solar power plant.

Net metering facility is also available in the atate, along with other incentives, he added.

He said that five acres of land were required for the setting up of 1MW ground-mounted solar power project, and its estimated cost is about Rs 5.30 crore.

About 16 lakh units of electricity per MW can be produced annually, which may be purchased by the Haryana power Purchase Centre by inviting tenders.