Government incentives and support for solar Energy generation and usage

Central financial assistance (CFA) up to 40% of the benchmark cost is provided for rooftop solar projects upto 3kW capacity and up to 20% for rooftop solar system capacity beyond 3 kW and up to 10 kW for individual households.

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    For promoting solar energy in the residential sector, the Ministry of New and Renewable Energy is implementing Rooftop Solar Programme Phase-II. Under this Programme 4000 MW rooftop solar (RTS) capacity addition is targeted in residential sector through Central Financial Assistance (CFA).

    CFA up to 40% of the benchmark cost is provided for RTS projects upto 3 kW capacity and up to 20% for RTS system capacity beyond 3 kW and up to 10 kW for individual households. For Group Housing Societies/Residential Welfare Associations (GHS/RWA), CFA is limited to 20% for RTS plants for supply of power to common facilities maximum 500 kW capacity.

    In addition, Government has taken several steps to promote solar energy in the country. These include:

    1. permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
    2. waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
    3. declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
    4. setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
    5. schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM- KUSUM), 12000 MW CPSU Scheme Phase II, etc.,
    6. laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
    7. notification of standards for deployment of solar photovoltaic system/devices,
    8. setting up of Project Development Cell for attracting and facilitating investments,
    9. Standard Bidding Guidelines for tariff based competitive bidding for procurement of Power from Grid Connected Solar PV and Wind Projects.
    10. Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
    11. Conducting skill development programmes to create a pool of skilled manpower for setting up, operation and maintenance of RE projects.