Switching subsides from kerosene to off-grid solar would benefit the millions of Indian households that suffer frequent blackouts or that cannot afford grid electricity. A range of off-grid solar products is now cheaper than kerosene over the lifespan of the technology.
The Goods and Services Tax (GST) has increased the cost of solar photovoltaic (PV) power generation by almost 6 per cent and reduced the cost of coal thermal power generation by 1.6 per cent. The absolute size of the subsidy to coal power generation remains INR 7,685 crore (USD 1.1 billion) higher than for solar PV in 2018.
This is the fourth in the series of ten good practice notes under the Energy Sector Reform Assessment Framework (ESRAF), an initiative of the Energy Sector Management Assistance Program (ESMAP) of the World