About Phase-II of Grid Connected Rooftop Solar Programme

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.


The post ID for this chapter is 3487. For any suggestion or comment regarding the content, you may write to us at faqs[dot]solar[at]gmail[dot]com. Please quote the post ID in the subject, for better assistance.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.