Government of India has not proposed to make the use of solar energy compulsory for all categories of houses, industries, hospitals, hotels, nursing homes, etc. in the country with a view to promote the use of solar energy. However, Government has requested State Governments to promote Solar Energy by making suitable provision in buildings laws. Some urban local bodies have made provision in by-laws for solar water heaters.
Under Off grid and Decentralized Solar Applications Scheme of Jawaharlal Nehru National Solar Mission (JNNSM), the Ministry provides Central Financial Assistance of 30% of the cost of solar systems for installing Solar PV and Thermal Systems at Educational Institutions, Hospitals, Police stations, Panchayats, Jails, Govt. Guest Houses, Community buildings, Anganwadis, Orphanage and other buildings for social and community use, etc. For special categories states viz. NE, Sikkim, J&K, Himachal Pradesh and Uttarakhand, remote and difficult areas such as Lakshadweep, Andaman & Nicobar Islands, and districts on India’s international borders the CFA is limited to 60% of the cost of the water heating systems and 90% of the benchmark cost for SPV power projects accessed by only State Nodal Agencies(SNAs) / Solar Energy Corporation of India (SECI) . The benchmark cost set by the Ministry ranges from Rs 100 /Wp to Rs 450/Wp depending upon the size of the SPV system and Rs.8500 to Rs 11000 per sq. meter of collector area based on type of the collectors.
This information was given by the Minister of New and Renewable Energy Dr. Farooq Abdullah in a written reply in the Lok Sabha on 21st February, 2014.