Solar Schemes

Objective

Solar power projects can be set up anywhere in the country, however the solar power projects developed in scattered manner leads to higher project cost per MW and higher transmission losses. Individual projects of smaller capacity incur significant expenses in site development, drawing separate transmission lines to nearest substation, procuring water and in creation of other necessary infrastructure. It also takes longer time for project developers to acquire land, get all types of clearances and permissions etc. which ultimately delays the project. To overcome these challenges, the scheme for “Development of Solar Parks and Ultra-Mega Solar Power Projects” was rolled out in December, 2014 with an objective to facilitate the solar project developers to set up projects expeditiously.

Period

Up to 2023-24

Salient Features

  • A solar park is large chunk of land developed with common infrastructure facilities like transmission infrastructure, road, water, drainage, communication network etc. with all statutory clearances. Thus, the solar project developers can set up solar projects hassle-free.
  • The scheme was rolled out by Ministry of New & Renewable Energy on 12-12-2014. Under the scheme, it was proposed to set up at least 25 Solar Parks and Ultra Mega Solar Power Projects targeting 20,000 MW of solar power installed capacity within a span of 5 years starting from 2014-15.
  • • The capacity of the Scheme was enhanced from 20,000 MW to 40,000 MW on 21-03-2017. These parks are proposed to be set up by 2023-24.
  • The scheme envisages supporting the States/UTs in setting up solar parks at various locations in the country with a view to create required infrastructure for setting up of solar power projects. The solar parks provide suitable developed land with all clearances, transmission system, water access, road connectivity, communication network, etc. The scheme facilitates and speed up installation of grid connected solar power projects for electricity generation on a large scale.
  • All the States and Union Territories are eligible for getting benefit under the scheme.
  • The capacity of the solar parks shall be 500 MW and above. However, smaller parks are also considered where contiguous land may be difficult to acquire in view of difficult terrain and where there is acute shortage of non-agricultural land.
  • The solar parks are developed in collaboration with the State Governments and their agencies, CPSUs, and private entrepreneurs. The implementing agency is termed as Solar Power Park Developer (SPPD). There are 7 modes for selection of SPPDs.

CFA Pattern:

  • Under the scheme, the Ministry provides Central Financial Assistance (CFA) of up to Rs. 25 lakh per solar park for preparation of Detailed Project Report (DPR). Beside this, CFA of up to Rs. 20.00 lakh per MW or 30% of the project cost, including Grid-connectivity cost, whichever is lower, is also provided on achieving the milestones prescribed in the scheme.
  • The various modes for selection of SPPD and eligibility of CFA under various modes are given as under:
  • Mode

    Brief Description

    CFA Pattern

    Mode-1

    The State designated nodal agency or a State Government Public Sector Undertaking (PSU) or a Special Purpose Vehicle (SPV) of the State Government.

    Rs 12 lakh/MW or 30 % of the project cost to SPPD for development of internal infrastructure,
    and
    Rs 8 lakh/MW or 30 % of the project cost to the CTU/STU for creation of external transmission infrastructure.

    Mode-2

    A Joint Venture Company of State designated nodal agency and Solar Energy Corporation of India Ltd (SECI).

    Mode-3

    The State designates SECI as the nodal agency

    Mode-4

    (i) Private entrepreneurs with/without equity participation from the State Government

    Mode-5

    Central Public Sector Undertakings (CPSUs) like SECI, NTPC etc.

    Mode-6

    Private entrepreneurs without any Central Financial Assistance from MNRE

    No CFA

    Mode-7

    SECI will act as the Solar Power Park Developer (SPPD) for Renewable Energy Parks

    Rs 20 lakh/MW or 30 % of the project cost for external transmission infrastructure only.

    Mode-8

    CPSU/ state PSU/ Government organisation/ their subsidiaries or the JV of above entities can act as SPPD.

    Rs 20 lakh/MW or 30% of the project cost for internal infrastructure only.

How to avail the financial assistance?

By submitting proposals to MNRE/SECI. As on 30-11-2022, a capacity of 39,285 MW has been sanctioned in 13 states. The approved parks are at various stages of implementation.

Whom to contact

  1. 1. Advisor (NSM), Ministry of New and Renewable Energy Email: dilipnigam@nic.in  
  2. 2. Managing Director, Solar Energy Corporation of India (SECI), 6th Floor, Plate-B, NBCC Office Block Tower-2, East Kidwai Nagar, New Delhi-110023, Email: md@seci.co.in

Relevant Document

  1. Norms suggested for charges in Solar Parks (12-11-2021)
  2. Clarification regarding Rehabilitation and Resettlement (R & R) for Solar Parks (26-03-2021)
  3. Extension in the timeline of Solar Park Scheme & change in implementing agency (02-03-2021)
  4. Development of Solar Parks and Ultra Mega Solar Power Projects-Extension of timelines-reg (19-08-2020)
  5. Modifications in Scheme for "Development of Solar Parks and Ultra Mega Solar Power Projects"-regarding (15-06-2020)
  6. Modifications in Scheme for "Development of Solar Parks and Ultra Mega Solar Park Scheme"-reg (19-07-2019)
  7. Advisory for effective use of water in Solar Power Projects - reg. (03.06.2019)
  8. Introduction ofMode-7 under Solar Park Scheme (09-03-2019)
  9. Modification in SolarPark Scheme Time Lines and Mode IV (05-02-2019)
  10. Modification in Mode5A & Mode 6 of SPPD under Solar Park Scheme (18-09-2018)
  11. Extension-of-timelines of Solar Park Scheme (02-07-2018)
  12. Modification inselection of SPPDs (22-05-2018)
  13. Modification-in-Milestones-on-release-of-CFA-to-CTU-STU (18-01-2018)
  14. Clarification onapplicability of EIA for Solar Park (14-08-2017)
  15. Verification-of-Receipt-of-Material-for-Pooling-Stations-by-SECI (25-07-2017)
  16. Corrigendum Purchase-of-at-least-20-percent-of-solar-power-producedin-Solar-Park-through-DISCOMSs (19-06-2017)
  17. Scheme for enhancement of capacityof Solar Park Scheme from 20 GW to 40GW (21-03-2017)
  18. Apportionment of CFA (29-09-2016)
  19. Standard Table of Contents forsubmission DPRs of Solar Park (not mentioned)
  20. Format for submission of Proposalfor New Solar Parks (not mentioned)
  21. Scheme-fordevelopment-of-Solar-Park Ultra-Mega-Solar-Power-Projects (12-12-1014)

 

ObjectiveTo set up solar PV projects through Government Producers using domestic cells & modules in WTO compliant manner to facilitate national energy security and environment sustainability for Government purpose.
Period2019-20 to 2022-23
Salient Features
  • Eligible Organisations: Government Producers (PSUs/ Govt. Orgns.) which are under administrative control or have 50% shareholding of Central / State Govt.
  • GoI Support offered: VGF of upto Rs. 70 lakhs/ MW; actual VGF decided through bidding for VGF required.
  • Mode of allocation: Bidding through SECI on VGF required
  • Usage of solar power: Self-Use or use by Other Govt. Orgns. thorugh Discoms
  • Domestic Content Requirement: Domestically manufactured solar PV cells & Modules
How to avail the financial assistanceThrough participation in bids issued by Solar Energy Corporation of India Limited (SECI) under this Scheme
Whom to contact
  1. Shri Ruchin Gupta, Director, Ministry of New & Renewable Energy, Block-14, C.G.O. Complex. Lodhi Road, New Delhi – 110003. Telefax: 011-24362488, Email: ruchin.gupta@gov.in
  2. Managing Director, Solar Energy Corporation of India (SECI), 1st Floor, D-3, A Wing, Prius Platinum Building, District Centre, Saket, New Delhi-110017, Tel: 011-71989201, Fax: 011-71989235, Email: md@seci.co.in
Relevant Document
  1. Letter to Electricity Distribution Companies in Government Sector and SECI regarding Scheme Modalities and Role of DISCOMS in MNRE's CPSU Scheme Phase-II (03-07-2019)
  2. Administrative Approval dated 5th March 2019 regarding Scheme Guidelines for CPSU Scheme Phase-II (Government Producer Scheme) (05-03-2019)
  3. Format of undertaking from the Government Producers, under CPSU Scheme Phase-II (not mentioned)

Objective To achieve a cumulative installed capacity of 40,000 MW from Grid Connected Rooftop Solar (RTS) projects.
Period of existing Phase-II scheme Till 31.03.2026
Salient Features

Central Financial Assistance (CFA)/Subsidy is provided to the residential electricity consumers under Component-A and incentives are provided to DISCOMs under Component-B of this programme.

To avail CFA a residential consumer has to apply for installation of Grid Connected Roof Top Solar (GCRTS) through any of following two mechanisms:


  • Mechanism 2: Applicable through State DISCOMs portal
  • Applicable CFA under this mechanism is available at the link
  • The consumer has to pay only the balance amount after deducting the subsidy/CFA to the bank account of an empanelled vendor after successful installation and verification by the State DISCOMs

Component A: CFA to Residential sector - 4 GW

Component B: Incentives to DISCOMs – for initial 18 GW Capacity

Admissibility of CFA for residential sector rooftop solar projects installed under Rooftop Solar Programme Phase-II (181kb PDF, 27/01/2023)

Whom to contact
Relevant Document
  1. Notification Simplification of Procedure
  2. Virtual net metering
  3. Benchmark cost (FY 21-22, 20-21, 19-20, 18-19)
  4. Scheme Guidelines and their subsequent amendments
  5. For more information regarding Rooftop Solar please visit National Portal on Rooftop Solar

  • Objective
    • The scheme aims to add solar and other renewable capacity of 30,800 MW by 2022 with total central financial support of Rs. 34,422 Crore including service charges to the implementing agencies.
    • The Scheme consists of three components:
      • Component A: 10,000 MW of solar capacity through installation of small Solar Power Plants of individual plants of capacity upto 2 MW.
      • Component B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps.
      • Component C: Solarisation of 15 Lakh Grid-connected Agriculture Pumps.
    Period Till 31.12.2026
    Salient Features
    • Component A:
      • Solar energy-based power plants (SEPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG).In the above specified entities are not able to arrange equity required for setting up the SEPP, they can opt for developing the SEPP through developer(s) or even through local DISCOM, which will be considered as SPG in this case.
      • DISCOMs will notify sub-station wise surplus capacity which can be fed from such SEPP to the Grid and shall invite applications from interested beneficiaries for setting up the solar energy plants.
      • The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
      • DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date (COD).
    • Component B:
      • Individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP in off-grid areas, where grid supply is not available.
      • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give at-least a subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
      • o In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 20% will be provided by the farmer.
    • Component C: Individual Pump Solarisation (IPS)
      • Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme.
      • The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
      • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
      • In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of at-least 30%; and the remaining at-most 20% will be provided by the farmer.
    • Component C: Feeder Level Solarisation (FLS)
      • Instead of the individual solar pumps the states can solarize the agriculture feeders. Guidelines were issued on 04.12.2020.
      • Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. Further, assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power. However, mixed can also be solarised.
      • Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.
      • CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. However, in the North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and A&N Islands 50% subsidy is available.
      • The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.
    How to avail the financial assistance
    • Component A
      • The renewable power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) approved by respective State Electricity Regulatory Commission (SERC).
      • In case the farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)etc. are not able to arrange equity required for setting up the SEPP, they can opt for developing the SEPP through developer(s) or even through local DISCOM, which will be considered as RPG in this case. In such a case, the land owner will get lease rent as mutually agreed between the parties.
      • To avail of the PBI, the Implementing Agencies are requested to submit their claims for the projects which have been completed one year post their commissioning date, till 5 years from COD, along with the Signed Copy of the Joint Metering Report and Receipt of lease rent paid to the beneficiary/land-owner, wherever applicable.
    • Component B & Component C (IPS)
      • State-wise allocation for solar pumps and solarisation of existing grid-connected pumps will be issued by MNRE, after approval by a Screening Committee under the chairmanship of the Secretary, MNRE.
      • On acceptance of the allocated quantity by the implementation agencies and submission of the detailed proposal as per MNRE format, within a given time, the final sanction will be issued by MNRE.
      • Projects for solarisation or installation of pumping systems shall be completed within 24 months from the date of sanction by MNRE. Extension in project completion timelines, up to a maximum period of three months, will be considered at the level of Group Head in MNRE and up to 6 months at the level of Secretary in MNRE on submission of valid reasons by the implementing agency.
      • Funds up to 40% of the applicable CFA for the sanctioned quantity would be released as advance to the implementing agency only after placement of letter of award(s) to the selected vendors.
      • The balance eligible CFA along with applicable service charges would be released on acceptance of the Project Completion Report in the prescribed format, Utilization Certificates as per GFR, and other related documents by the Ministry.
      • MNRE CFA and State Government’s subsidy will be adjusted in the system cost and the beneficiary will have to pay only the remaining balance.
    • Component-C (FLS)
      • CFA applicable under the FLS can be released in the following manner wrt CAPEX/ RESCO mode of implementation of the FLS.
      • CAPEX:- Advance CFA up to 40% of the total eligible CFA will be released to DISCOMs on completion of tendering process and signing of work agreement with EPC contractor selected for installation of solar power plant. Balance CFA will be released on successful commissioning of solar power plant and plant starts supplying power to agriculture feeder(s).
      • RESCO:- No advance CFA. Further, the CFA up to 100% of the total eligible CFA will be released to the RESCO developer through DISCOM on successful commissioning and declaration of the Commercial Operation Date (COD) of the solar power plant.
    Whom to contact