PIB Press Releases

Government incentivizing rooftop solar systems connected to the grid

Subsidy upto 40% of the benchmark cost  provided for Rooftop Solar plants upto 3 kW capacity

To promote rooftop solar (RTS) in the country including in rural areas, the Ministry of New and Renewable Energy is implementing Rooftop Solar Programme Phase II wherein RTS capacity aggregating 4000 MW by 2022 is targeted for installation in the residential sector with the provision of subsidy. For individual households, subsidy up to 40% of the benchmark cost is provided for RTS plants up to 3 kW capacity and 20% for RTS plants of capacity beyond 3 kW and up to 10 kW. For Group Housing Societies/Residential Welfare Associations (GHS/RWA), the subsidy is limited to 20% of the benchmark cost for RTS plants of capacity up to 500 kW used for supply of power to common facilities.

The following major steps have been taken by the Government for the overall promotion of Grid Connected Rooftop Solar Systems in the country:

  • Launch of phase II of rooftop solar programme under with Central Financial Assistance (CFA) for residential sector and incentives in slabs for the Power Distribution Companies (DISCOMs) for achievement of additional capacity over and above the installed capacity of the previous year.
  • Earlier under Phase-I of the programme, CFA assistance for residential/ institutional/social sectors and achievement linked incentives for Government sectors was provided.
  • Assistance to states in development/ integration of online portal and aggregation of demands relating to rooftop solar projects.
  • Preparing of model MoU, PPA and Capex Agreement for expeditious implementation of RTS projects in Government Sector. Ministry-wise expert PSUs were identified for handholding and providing support for implementation of RTS projects in various Ministries/ Departments under erstwhile phase I of the programme.
  •  Advising States to notify the net/gross metering regulations for RTS projects. At present, all 36 States/UTs/SERCs have notified such regulations and/or tariff orders.
  •  SPIN-an online platform developed for expediting project approval, report submission and monitoring progress of implementation of RTS projects.
  •  Facilitation of concessional loans from World Bank and Asian Development Bank (ADB) through SBI and PNB respectively, for disbursal of loans to industrial and  commercial sectors, where CFA/incentive is not being provided by the Ministry.
  • Renewable energy included under priority sector lending
  • Declaration of trajectory of renewable Purchase Obligation (RPO) upto year 2022
  • Quality standards for deployment of solar photovoltaic system/ devises notified.
  • Innovative Business models for rooftop solar shared with the States
  • Information and public awareness activities through print and electronic media.

This information was given by Union Minister for Power and New and Renewable Energy, Shri R.K. Singh in a written reply in Rajya Sabha yesterday.

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