Solar Schemes in India

Solar Schemes in India

The Ministry of New and Renewable Energy (MNRE) develops and deploys projects and plans for meeting the energy requirements of India sustainably. By 2022, the Ministry has a target of producing 100 GW of Solar power. To reach this ambitious target, the ministry has introduced a number of Central Financial Assistance (CFA) schemes and various subsidies for individuals or enterprises setting up solar projects. Some of them are discussed below.


Scheme for development of solar parks and Ultra Mega Solar Power Projects1

The scheme aims to provide a huge impetus to solar energy generation by encouraging investors and project developers. It would enable each state to bring in significant investments to meet its solar renewable purchase obligation (RPO) mandate while providing employment opportunities to local populations. The solar parks will be developed in collaboration with the State Governments and their agencies. Solar Energy Corporation of India (SECI) would be MNRE’s Agency for handling this Scheme.

Central Financial Assistance (CFA) of Rs.25 lakhs per solar park is to be provided for the detailed Project Report preparation, conducting surveys, etc. In addition, CFA of up to Rs.20 lakhs or 30% of the project cost, including grid-connectivity cost, whichever is lower is to be provided by the MNRE for each MW.

Scheme for Setting up 300MW of Solar PV Power Projects by Defense Establishments2

The scheme aims to promote ecologically sustainable growth and to utilize available space of defense sector or Para military forces for achieving energy security by introducing solar power solutions such as power plants and domestically manufactured equipment.

The power generated through these solar plants will be utilized by the establishments of the ministry of defense or paramilitary forces at a fixed tariff of Rs 5.50 per kWh for 25 years.

A total of 300 MW had been planned between the 5 years period -2014 to 2019.

Scheme of MNRE for Large Scale Grid Connected Rooftop Solar Power Generation3

The specific objectives of the scheme include:

  • Demonstration of grid-connected rooftop solar power plants to facilitate a reduction in consumption of diesel for power generation and dependency on grid power.
  • To establish the effectiveness of these solar systems in different locations of India.

A subsidy of 30% on the system cost is provided by the SECI to the developer to whom the project has been allocated. The manner of disbursal of the subsidy can be understood clearly as below.
– 20% after successful installation and commissioning of the solar system.
– 5% after one year of the successful operation of the project.
– Balance 5% after two years of the successful operation of the project.
This scheme covers projects of system sizes between 100 kW to 500 kW.

Schemes for grid-connected Rooftop4

CFA is 30% of the benchmark cost for general and 70% CFA for North Eastern and the Special Category States, for the residential, social and institutional sectors. This subsidy is not available for the  Industrial & commercial solar panel installation.

Schemes for development of grid-connected PV plants on canal banks and canal tops5

Financial support of INR 30 million/MW or 30% of the project cost, whichever is lower, for canal top projects and INR 15 million/MW or 30% of the project cost, whichever is lower, for canal bank projects.

References:
1. https://www.indiafilings.com/learn/wp-content/uploads/2015/06/Scheme-for-development-of-Solar-Park-Ultra-Mega-Solar-Power-Project-2014-2019.pdf
2. https://www.indiafilings.com/learn/wp-content/uploads/2015/06/Scheme-for-Solar-Power-Project-by-Defence-Establishments.pdf
3. https://www.indiafilings.com/learn/wp-content/uploads/2015/06/Large-Scale-Grid-Connected-Roof-Top-Solar-Power-Generation-.pdf
4. https://www.pv-magazine-india.com/2018/01/15/summary-central-subsidies-for-solar-pv/

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