PHASE-II Grid connected Solar rooftop programme

The Cabinet Committee on Economic Affairs (CCEA) has approved the Phase-2 of Grid Connected Roof top Solar programme for achieving cumulative capacity of 40 GW from Roof top Solar (RTS) projects by 2022 through a total Central Financial support of Rs.11,814 Cr. This scheme is proposed to be implemented through the Electricity Distribution Companies (DISCOMs).

The brief of different components/ incentives are as follows:

Component A : Central Financial Assistance (CFA) to residential sector – 4GW:

CFA at 20% for capacity beyond 3 kWp and upto 10 kWp

CFA at 20% for Group Housing Societies (GHS)/Residential Welfare Associations (RWA) capacity upto 500 kWp (limited to 10 kWp per house and total upto 500 kWp).

Domestic manufactured modules and Solar cells to be used.

CFA shall be on benchmark cost of MNRE for the State/UT or lowest of the cost discovered in the tenders for that State/UT in that year, whichever is lower.

Component B: Incentives to DISCOMs – for initial 18 GW Capacity:

Progressive incentive for DISCOMs for achievements above baseline (the cumulative RTS capacity installed at the end of previous financial year).

No incentives for capacity addition up to 10%

5% incentives for addition beyond 10% and upto 15%

10% incentives for addition beyond 15%