Government Targets 4,000 MW Rooftop Solar Capacity Addition In Residential Sector

Union Minister for Power and New and Renewable Energy RK Singh has informed the Parliament that MNRE is targeting 4,000 MW rooftop solar (RTS) capacity addition in residential sector through Central Financial Assistance (CFA) under the Rooftop Solar Programme (Phase-II).

The Union Minister said in a written response to a question asked in the Rajya Sabha, that the CFA up to 40 per cent of the benchmark cost is provided for Rooftop Solar Sector (RTS) projects up to 3 kW capacity and up to 20 per cent for RTS system capacity beyond 3 kW and up to 10 kW for individual households.

RK Singh said, “For Group Housing Societies or Residential Welfare Associations (GHS/RWA), CFA is limited to 20 per cent for RTS plants for supply of solar power to common facilities for maximum 500 kW capacity. In addition, incentives up to 10 per cent of cost of rooftop solar is provided to distribution utilities depending upon achievements in capacity addition above baseline.”

“The programme is demand driven and capacities are allocated based on demand received from distribution utilities and other state implementing agencies. The ministry has so far allocated 3,162 MW of capacity for the residential sector. Against the allocated capacity of 3,162 MW, a total 1,252 MW capacity has been reported installed as on 28 February this year,” informed RK Singh

He informed the Parliament that the grid connectivity for rooftop solar projects including net-metering is provided by distribution utilities as per regulations notified by the respective State Electricity Regulatory Commission (SERC) or Joint Electricity Regulatory Commissions (JERC) and these regulations are notified by regulatory commissions after stakeholder consultation and are amended from time to time.

The MNRE Minister said that the Ministry has also issued a notification for simplification of the Rooftop Solar Programme which among other things includes online application for net- metering approval.

India has struggled to meet its 40 GW target for rooftop solar by 2022, by far the biggest reason for underperformance on the 100 GW solar target by this year end. Total rooftop solar capacity has barely crossed 7 GW till date. To that extent, the 5 GW incremental target remains a little unambitious, to say the least.

Subsidy is the least of the problem here, as user feedback has regularly shown. The larger issue is one of awareness, process (of getting a rooftop solar installed), and outright discom apathy in many states to the concept.