To promote power generation from new and renewable energy sources in the country, the Union government is giving various fiscal and financial incentives, such as capital/interest subsidy, generation-based incentives, accelerated depreciation, concessional excise and customs duties to the generating firms.    

Under such incentives/subsidy scheme, power generators in North Eastern Region, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttarakhand states get upto Rs three crore for a stipulated capacity wind power projects, whereas in other states the subsidy is Rs 2.50 crore.    

Subsidy of 30 per cent of project cost and or 5 per cent interest bearing loans are being extended to solar energy systems. For solar light, through NABAAD, 40 per cent subsidy is available to beneficiaries.    

Similarly, such incentives are available for small hydro power projects, biomass power projects and bagasse (sugarcane pulp) cogeneration projects, says a government press release.