To achieve a cumulative capacity of 40,000 MW from Rooftop Solar projects by 2022, the Phase-II of Grid Connected Rooftop Solar Program has been approved by the Cabinet Committee on Economic Affairs led by Honorable Prime Minister, Shri Narendra Modi. Rs. 11, 814 crores total central financial support would be provided for the implementation of this program.
Based on the restructuring of the
Central Finance Assistance for residential sector, for Rooftop Solar (RTS)
systems with up to 3 kW capacity 40% CFA and for RTS systems having more than
3kW capacity and up to 10 kW capacity 20% CFA would be made available.
20% CFA would be the limit for the
RTS plants supplying power to common facilities of Residential Welfare
associations/Group Housing societies where the limit for eligibility for CFA
is10 kW per house and maximum total capacity of up to 500 kWp including the RTS
put in the individual houses of the Group Housing societies/Residential Welfare
Under residential category, CFA will
be provided on basis of lower of the benchmark cost or tender cost, for 4000 MW
capacity while for other categories like institutional, social, commercial,
educational, industrial, government, etc this Central financial support is not
Under this program which aims to
increase the DISCOMs involvement, DISCOMs
would get performance based incentives depending on the RTS capacity
achieved every financial year (between 1st April and 31st
March), over and above the base capacity achieved at the end of previous year.
Following is the incentive details for the DISCOMs:
capacity achieved upto 10% over and above of installed base capacity* within
a financial year.
capacity achieved above 10% and up to 15% over and above of installed based
capacity* within a financial year
5% of the
applicable cost** for capacity achieved above 10% of the installed base
capacity achieved beyond 15% over and above of installed based capacity*
within one financial year.
5% of the
applicable cost** for capacity achieved above 10% and up to 15% of the
installed base capacity PLUS 10% of the applicable cost** for capacity
achieved beyond 15% of the installed base capacity.
*Installed base capacity refers to
the collective RTS capacity including Residential, government, institutional,
PSU, Private, Industrial etc., installed within the DISCOMs jurisdiction at
preceding financial year end.
**Applicable cost refers to the lower
of the applicable benchmark cost of MNRE for State or Union Territory for RTS
capacity of more than 10 kW and up to 100 kW or the lowest of the costs found
in the tenders of the States or Union Territory in that year.
DISCOMs and their local offices which
would be the nodal points for this program implementation would have to incur
additional costs in terms of more man-power, infrastructure development,
capacity building etc for implementing the program. To enable them to make an
enabling ecosystem which would expedite the RTS program implementation in their
area as well as to compensate them for the additional expenditure, performance
linked incentives have been approved for the DISCOMs. Only those DISCOMs adding
up 18000 MW initial capacity would be eligible for the incentives under this
This program is expected to provide
tremendous savings in CO2 emissions and provide substantial environmental
impact. Taking 1.5 million units per MW as the average energy generation, by
2022, addition of 38 GW solar rooftop plant under this program is expected to
reduce 45.6 tons of CO2 emissions yearly.
Additionally this program besides
increasing self-employment is also expected to generate around 9.39 lakhs job
year employment opportunities for both skilled and unskilled workers for adding
38 GW solar rooftop plants under this scheme by 2022.