The Ministry of New and Renewable Energy (MNRE) has announced a revised Central Financial Assistance (CFA) for grid-connected rooftop solar power systems under Phase II of the Grid-Connected Rooftop Solar Program.
As per the statement, systems ranging from 1kW to 3kW capacity are now eligible for a subsidy of ₹18,000/kW in general states and ₹20,000/kW in special states. The previous subsidy for the general states category was ₹14,588/kW.
Here, special category states include north-eastern states, including Sikkim, Uttarakhand, Himachal Pradesh, and the union territories of Jammu and Kashmir, Ladakh, Lakshadweep, and Andaman and Nicobar Islands.
Rooftop solar energy systems between 3kW to 10kW capacity, installed in general states, are eligible for a CFA of ₹9,000/kW. In the special state category, this CFA has been raised to ₹10,000/kW.
Moreover, MNRE has removed the CFA for systems above 10kW, installed in individual households.
Residential welfare associations (RWA) or group housing societies can also claim a subsidy of ₹9,000/kW (general states) and ₹10,000/kW (special category states) for common facilities up to 500 kW. The CFA will be allotted up to 10kW per house.
Consumers must submit their applications at the National Portal for Rooftop Solar to avail the subsidy.
For all the rooftop solar systems installed through the tendering process, CFA will be calculated as the percentage of cost discovered. This means, 40% for 1-3 kW and 20% for above 3-10 kW, 20% for group Housing/RWAs up to 500 kW.
Central Financial Assistance for General States
| Project Capacity | Previous | Revised |
|---|---|---|
| Up to 3kW | ₹14,588/kW | ₹18,000/kW |
| 3-10kW | ₹7,294/kW | ₹9,000/kW |
| RWH/Group Housing Societies (for common facilities up to 500 kWp @ 10 kWp per house) | ₹7,294/kW | ₹9,000/kW |
Central Financial Assistance for Special Category States
| Project Capacity | Previous | Revised |
|---|---|---|
| Up to 3kW | ₹17,662/kW | ₹20,000/kW |
| 3-10kW | ₹8,831/kW | ₹10,000/kW |
| RWH/Group Housing Societies (for common facilities up to 500 kWp @ 10 kWp per house) | ₹8,831/kW | ₹10,000/kW |
All future bids after January 20, 2024, and claims submitted in the National Portal for Rooftop Solar after January 5, 2024, will have to adhere to the revised rates.
MNRE has extended Phase II of the rooftop solar program until March 31, 2026, without any addition to the initial budget of ₹118.14 billion.
India’s boost in solar subsidies is a big move towards transitioning to renewable energy and meeting its goal of achieving zero net carbon emissions.
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Resource: Mercom India
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