The subsidy rate and disbursement criteria as per the existing renewable (rural) energy subsidy arrangement shall be revised as required in the basis of geographical condition, population, and available resources. Subsidy delivery shall be as per the provisions of the existing subsidy delivery mechanism. The following strategy shall be adopted for this purpose:
5.1 Subsidy shall be arranged by classifying Village Development Committees based on poverty, remoteness, dalit and backward caste and tribes.
5.2 The existing subsidy shall be gradually reduced in accessible areas and areas where it is commercial viable.
5.3 Community management and holistic approach shall be encouraged as may be necessary for the sustainable rural energy development and management.
5.4 Micro hydro projects developed by the user-groups and cooperatives shall be encouraged.
5.5 Poor and backward families shall be identified and provided with additional support for use of rural energy system.
5.6 Necessary arrangement shall be made for encouragement in the feasible areas where there is no biogas.
5.7 The operation of biogas plants with toilet attachment shall be encouraged.
5.8 Development and promotion of briquette, bio-fuel, biomass gasification etc. shall be encouraged.
5.9 Subsidy to solar electricity shall be discouraged in the areas where there is financial and physical feasibility of micro and small hydro.
5.10 Use of solar energy and wind energy shall be encouraged where hydropower is not feasible.
5.11 Necessary arrangement shall be made for development of solar thermal technology in the rural areas.
5.12 Necessary financial support shall be made available for research and development of new technology.