MNRE Issues Guidelines for Phase-II of 40 GW Rooftop Solar Programme

MNRE has issued the implementation guidelines for the second phase of the 40 GW Rooftop Solar Programme, with the focus this time on Discoms for better execution

The Government of India (MNRE) has set the target of achieving 100 GW of solar power capacity in the country by the year 2022 of which 40 GW to be achieved from rooftop solar. guidelines

In 2015, the Centre had approved the “Grid Connected Rooftop and Small Solar Power Plants Programme‟ for installation of 4,200 MW RTS plants in the country by the year 2019-20, of which 2,100 MW was through Central Financial Assistance (CFA) and balance 2,100 MW was without CFA. Following which earlier this year, the Phase-II of the programme for achieving a cumulative capacity of 40 GW RTS plants by 2022 had been approved.

And now the Ministry of New and Renewable Energy (MNRE) has issued the implementation guidelines for the second phase of the program.

In Phase-II, it has been decided to implement the programme by making the Discoms and its local offices as the nodal points for implementation of the programme. Discoms will play a key role in the expansion of rooftop solar as they are having direct contact with the end-user and they provide approval for installation, manage the distribution network and also have billing interface with rooftop owner.

The key objectives which the ministry hopes to fulfill through the second phase of the program are:

1. To promote grid-connected rooftop solar systems in all consumer segments, viz., residential, institutional, social, government, commercial, industrial, etc.
2. To bring Discoms at the forefront as key drivers for rapid deployment of RTS.
3. To create awareness, capacity building, human resource development, etc.
4. To promote sustainable business models.
5. To create additional rooftop solar capacity of 38000 MW in the country by December 31, 2019, out of which a capacity of 4000 MW in residential sector with CFA and 34000 MW in other sectors (i.e., Social, Government, educational, PSUs, Statutory/ Autonomous bodies, Private Commercial, Industrial Sectors etc.) by suitably incentivising Discoms
6. To promote domestic manufacturing of solar cells and module.

There are two main components in the program:

Component A, up to 4,000 MW of grid-connected rooftop solar projects in the residential sector will be set up with CFA for which Discoms and its local offices will be the nodal points for the implementation of the program.

A CFA of up to 40 percent will be given for rooftop solar PV systems up to 3 kW capacity. For rooftop solar PV systems of capacity above 3 kW and up to 10 kW, the CFA will be limited to 20 percent, after the initial 3 kW.

Component B, under this the incentives to electricity distribution companies based on their achievement towards the initial 18,000 MW of grid-connected rooftop solar PV projects will be provided. Incentives will be provided for each MW capacity of solar rooftop, added by them in their distribution area over and above 10 percent of base capacity installed at the end of the previous year.

Discoms will have to submit the cumulative capacity of grid-connected rooftop solar PV projects (in MW) installed in their distribution area as on March 31, 2019. This will be taken as the installed base capacity for the first year of participating.

Speaking at the launch of the new SARAL Index, MNRE Secretary Anand Kumar explained that “for achievement above 10 percent and up to 15 percent over the installed base capacity, the Discom will get an incentive of 5 percent of the applicable cost for the capacity achieved above 10 percent of the installed base capacity. For an achievement beyond 15 percent over the installed base capacity, the Discom will get 5 percent of the applicable cost for the capacity achieved plus 10 percent of the applicable cost for capacity achieved beyond 15 percent of the installed base capacity.”

For more information click here.