Central Financial Assistance (CFA)/Subsidy is provided to the residential electricity consumers under Component-A and incentives are provided to DISCOMs under Component-B of this programme.

To avail CFA a residential consumer has to apply for installation of Grid Connected Roof Top Solar (GCRTS) through any of following two mechanisms:

• Mechanism 1: Applicable through National Portal for Roof top Solar
• Applicable CFA under this mechanism is available at the link
  https://solarrooftop.gov.in/pdf/revised_CFA_structure_071222.pdf
• Applicable CFA will be transferred directly to the consumers account after successful installation (by empanelled vendors) and verification by State DISCOMs

• Mechanism 2: Applicable through State DISCOMs portal
• Applicable CFA under this mechanism is available at the link
  https://solarrooftop.gov.in/notification/Notification-21082019-143301.pdf
• The consumer has to pay only the balance amount after deducting the subsidy/CFA to the bank account of an empanelled vendor after successful installation and verification by the State DISCOMs

Component A: CFA to Residential sector - 4 GW

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

Admissibility of CFA for residential sector rooftop solar projects installed under Rooftop Solar Programme Phase-II (181kb PDF, 27/01/2023)
https://mnre.gov.in/img/documents/uploads/file_s-1674818128100.pdf

• The scheme aims to add solar and other renewable capacity of 30,800 MW by 2022 with total central financial support of Rs. 34,422 Crore including service charges to the implementing agencies.
• The Scheme consists of three components:
  • Component A: 10,000 MW of solar capacity through installation of small Solar Power Plants of individual plants of capacity upto 2 MW.
  • Component B: Installation of 20 lakh standalone Solar Powered Agriculture Pumps.
  • Component C: Solarisation of 15 Lakh Grid-connected Agriculture Pumps.

• Component A:
  • Solar energy-based power plants (SEPP) of capacity 500 kW to 2 MW will be setup by individual farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)/Water User associations (WUA) hereinafter called Solar Power Generator (SPG).In the above specified entities are not able to arrange equity required for setting up the SEPP, they can opt for developing the SEPP through developer(s) or even through local DISCOM, which will be considered as SPG in this case.
  • DISCOMs will notify sub-station wise surplus capacity which can be fed from such SEPP to the Grid and shall invite applications from interested beneficiaries for setting up the solar energy plants.
  • The solar power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC).
  • DISCOM would be eligible to get PBI @ Rs. 0.40 per unit purchased or Rs. 6.6 lakh per MW of capacity installed, whichever is less, for a period of five years from the Commercial Operation Date (COD).
• Component B:
  • Individual farmers will be supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP in off-grid areas, where grid supply is not available.
  • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar Agriculture pump will be provided. The State Government will give at-least a subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
  • o In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 20% will be provided by the farmer.
• Component C: Individual Pump Solarisation (IPS)
  • Individual farmers having grid connected agriculture pump will be supported to solarise pumps. Solar PV capacity up to two times of pump capacity in kW is allowed under the scheme.
  • The farmer will be able to use the generated solar power to meet the irrigation needs and the excess solar power will be sold to DISCOMs.
  • CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give at-least subsidy of 30%; and the remaining at-most 40% will be provided by the farmer. Bank finance can be availed by farmer, so that farmer has to initially pay only 10% of the cost and remaining up to 30% of the cost as loan.
  • In North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. The State Government will give a subsidy of at-least 30%; and the remaining at-most 20% will be provided by the farmer.
• Component C: Feeder Level Solarisation (FLS)
  • Instead of the individual solar pumps the states can solarize the agriculture feeders. Guidelines were issued on 04.12.2020.
  • Where agriculture feeders are not separated, loan for feeder separation may be taken from NABARD or PFC/REC. Further, assistance for feeder separation may be availed from the Revamped Distribution Sector Scheme (RDSS) of the Ministry of Power. However, mixed can also be solarised.
  • Solar plants of capacity that can cater to the requirement of the agriculture load of the selected feeder can be installed through CAPEX/RESCO mode for a project period of 25 years.
  • CFA of 30% on the cost of installation of solar power plant (up to Rs. 1.05 Cr/MW) will be provided. However, in the North Eastern States, Sikkim, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and A&N Islands 50% subsidy is available.
  • The farmers will get day-time reliable power for irrigation free of cost or at tariff fixed by their respective state.

• Component A
  • The renewable power generated will be purchased by DISCOMs at a feed-in-tariff (FiT) approved by respective State Electricity Regulatory Commission (SERC).
  • In case the farmers/ group of farmers/ cooperatives/ panchayats/ Farmer Producer Organisations (FPO)etc. are not able to arrange equity required for setting up the SEPP, they can opt for developing the SEPP through developer(s) or even through local DISCOM, which will be considered as RPG in this case. In such a case, the land owner will get lease rent as mutually agreed between the parties.
  • To avail of the PBI, the Implementing Agencies are requested to submit their claims for the projects which have been completed one year post their commissioning date, till 5 years from COD, along with the Signed Copy of the Joint Metering Report and Receipt of lease rent paid to the beneficiary/land-owner, wherever applicable.
• Component B & Component C (IPS)
  • State-wise allocation for solar pumps and solarisation of existing grid-connected pumps will be issued by MNRE, after approval by a Screening Committee under the chairmanship of the Secretary, MNRE.
  • On acceptance of the allocated quantity by the implementation agencies and submission of the detailed proposal as per MNRE format, within a given time, the final sanction will be issued by MNRE.
  • Projects for solarisation or installation of pumping systems shall be completed within 24 months from the date of sanction by MNRE. Extension in project completion timelines, up to a maximum period of three months, will be considered at the level of Group Head in MNRE and up to 6 months at the level of Secretary in MNRE on submission of valid reasons by the implementing agency.
  • Funds up to 40% of the applicable CFA for the sanctioned quantity would be released as advance to the implementing agency only after placement of letter of award(s) to the selected vendors.
  • The balance eligible CFA along with applicable service charges would be released on acceptance of the Project Completion Report in the prescribed format, Utilization Certificates as per GFR, and other related documents by the Ministry.
  • MNRE CFA and State Government’s subsidy will be adjusted in the system cost and the beneficiary will have to pay only the remaining balance.
• Component-C (FLS)
  • CFA applicable under the FLS can be released in the following manner wrt CAPEX/ RESCO mode of implementation of the FLS.
  • CAPEX:- Advance CFA up to 40% of the total eligible CFA will be released to DISCOMs on completion of tendering process and signing of work agreement with EPC contractor selected for installation of solar power plant. Balance CFA will be released on successful commissioning of solar power plant and plant starts supplying power to agriculture feeder(s).
  • RESCO:- No advance CFA. Further, the CFA up to 100% of the total eligible CFA will be released to the RESCO developer through DISCOM on successful commissioning and declaration of the Commercial Operation Date (COD) of the solar power plant.