Ministry of New and Renewable Energy (MNRE), Government of India, launched the Phase-II of Grid Connected Rooftop Solar Programme that provides a subsidy for installing rooftop solar systems in August 2019. The programme is being implemented through electricity distribution companies and provides a subsidy for only household owner and Group Housing Societies to set up solar systems on the rooftop of their residence/residential campus.
The Implementation arrangement of the programmes is divided into two components.
Component A: Central Financial Assistance (CFA)* to Residential sector – 4 GW, under which:
- CFA @ 40% for capacity up to 3 kWp
- CFA @ 20% for capacity beyond 3 kWp and up to 10 kWp
- CFA @ 20% for GHS/RWA capacity up to 500 kWp (limited to 10 kWp per house and total upto 500 kWp)
* CFA shall be on % of the benchmark cost of MNRE for the state/ UT or lowest of the costs discovered in the tenders for that state/ UT in that year, whichever is lower implementing agency: Power Distributing companies (DISCOMs)
Component B: Incentives to DISCOMs – for an initial 18 GW Capacity, under which:
The progressive incentive for Discoms for achievements above baseline (the cumulative RTS capacity installed at the end of the previous financial year).
- No incentives for capacity addition up to 10%
- 5% incentives for addition beyond 10% and up to 15%
- 10% incentives for addition beyond 15%
Only domestic manufactured modules and Solar cells to be used under this programme to be eligible for CFA. Click Here to study the Operational Guidelines on implementation of Phase – II of Grid Connected Rooftop Solar Programme.
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