A framework for analyzing impact of potential financial/fiscal incentives for promoting institutional solar cooking in India

Sunil Indora and Tara C. Kandpal

Renewable Energy, 2019, vol. 143, issue C, 1531-1543

Abstract: A framework to estimate the extent of various incentives required to ensure financial attractiveness of institutional solar cooking is presented with typical examples from India. Incentives considered are capital subsidy/viability gap funding, accelerated depreciation, interest subsidy, and investment tax credit have been considered for three commercially available designs of solar cookers that can be used for institutional cooking (SK-23, Scheffler dish (direct), and Scheffler dish (steam)). Depending on the location, the extent of viability gap funding (VGF) for Scheffler dish (steam) solar cooking system varies from 18.7% to 66.5% of the capital cost, while the same for SK-23 and Scheffler dish (direct) varies from 8.7% to 82.9%, and 33.4%–94.5% respectively. From the government point of view, the provision of accelerated depreciation for incentivising institutional solar cooking is found to be the least cost option followed by viability gap funding, investment tax credit and interest subsidy in the order of increasing cost to the government. At locations in the cold and cloudy climatic zone of India, there is invariably a need to provide a combination of incentives (as the current provision of 30% capital subsidy is not adequate) to ensure a breakeven condition.

Keywords: Institutional solar cooking; Viability gap funding; Accelerated depreciation; Interest subsidy; Investment tax credit (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148119307700
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:143:y:2019:i:c:p:1531-1543

DOI: 10.1016/j.renene.2019.05.097

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().