MNRE Increases Subsidy For New Residential Solar Rooftop Consumers

MNRE Increases Subsidy For New Residential Solar Rooftop Consumers Photo by-xb100/Freepik

The Ministry of New and Renewable Energy (MNRE) announced an increase in the Central Financial Assistance (CFA) under the rooftop solar scheme (Phase-II) for different categories of residential consumers. The ministry said that the new rates will be applicable for projects undertaken either through the tender mode or through applications received through the National portal for Rooftop Solar.

As per the new notification, MNRE will grant a CFA of Rs 18,000 per KW for residential solar rooftop projects between 1-3 KW capacity. This contrasts with the existing CFA grant of Rs 14,588/KW. With the revision of the CFA grants under this category, any consumer applying for a central subsidy will be eligible for an increased CFA per KW.

Similarly, the ministry has revised the rates for rooftop solar projects between 3KW and 10KW from Rs 7,294/KW to Rs 9000/KW, registering an increased allocation. For the special states, the subsidies have been revised, too. For special status, the central subsidy for residential rooftop projects between 1-3KW stands at Rs 20,000/KW, and for the projects above 3 KW but below 10 KW, the total subsidy will be Rs 10,000/KW, the latest notification from the ministry said.

It also added that for the Resident Welfare Associations/Group Housing Societies, for common facilities up to 500 KW with a ceiling of 10KW per household, the ministry will give a grant of Rs 9,000 per KW for general states and Rs 10,000/KW for special states.
Special states include North-East States, including Sikkim, Uttarakhand, Himachal Pradesh, and UTs – Jammu and Kashmir (J&K). Ladakh, Lakshadweep and Andaman & Nicobar Islands.

The ministry said that the new rates will be applicable for all future bids and bids which are scheduled to be closed after 15 days after the issue of the notice. It also added that the new benchmark CFA rates will be applicable for all claims submitted in the National Portal for Rooftop Solar.

“The implementing agencies (discoms/SIAs, etc) shall be required to mandatorily carry out the tendering process for discovery of rates and empanelment of vendors for implementation of capacity allotted by the MNRE as per extant guidelines issued. In such cases (tender mode), the admissible CFA shall be restricted to the (o) revised bench market CFA or (ii) the admissible CFA as per the discovery rate (i.e 40% for 1-3 KW, 20% for above 3-10 KW, whichever is lower…” the notice said.