Govt considering subsidy hike for residential rooftop solar systems with capacities up to 3 kW

KfW Rooftop


Pradhan Mantri Suryodaya Yojana [for solarization of residential rooftops] is being conceptualized and the guidelines for the scheme will be issued by the Ministry of New and Renewable Energy (MNRE) shortly, said Vivek Kumar Dewangan, chairman and managing director of REC Ltd (a non-banking finance company under the Ministry of Power).

Dewangan said the MNRE is in the process of revising the guidelines of the national rooftop solar scheme launched earlier. It is considering increasing the subsidy for the low-segment, grid-connected rooftop solar systems in the residential sector with capacities between 1-3 kW.

Under the previously launched national rooftop solar scheme, the subsidy (central financial assistance) amount for 1-3 kW grid-connected rooftop solar systems in the residential sector was up to 40% of the benchmark cost of the system, and for systems beyond 3 kW and up to 10 kW, the subsidy amount was up to 20%.

Dewangan said, under the Pradhan Mantri Suryodaya Yojana, the target is to cover one crore residential rooftops in one year. MNRE has already started a pilot project in the Varanasi district of Uttar Pradesh, where the target is to install 25,000 rooftop solar systems. Similarly, the MNRE has asked the states to prioritize the cities or the urban conglomeration for this rooftop solar mission. Once the cities are finalized, REC will coordinate with all the stakeholders.

Dewangan said, “MNRE has given us [REC] the mandate to work as a program implementation agency for the installation of 40 GW of rooftop solar capacity by 2026, for which the total financial workout is INR 240,000 crore. The subsidy part is still being worked out by the MNRE..If one crore [residential] rooftops are targeted in one year [through the Pradhan Mantri Suryodaya Yojana], the total installed capacity supported with this scheme will be 10 GW over a year’s period if only 1 kW systems are installed.”

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