Government Solar Programmes

Generation Based Incentives Name of the Generation Based Incentives For Grid Interactive Solar Scheme PVi/Solar Thermalii Generation Projects Target This Programme supported by Ministry of New & Renewable Energy (MNRE) targeted a capacity addition of 50 MW (including solar PV and as well as solar thermal) during the 11th Five Year Plan period as well as development and demonstration of technical performance, achieving reduction in cost of grid connected PV systems and cost of power generation. To avail Generation Based incentives, existing registered companies, central & state power generation companies, and public/private sector PV project developers who have or plan to set up registered company in India will be eligible. Solar PV/ Thermal Generation Plants connected with grid having a minimum installed capacity of 1 MWp per plant (may be set up through modular units to make 1 MW) at a single location are deemed as eligible for GBI. A maximum cumulative capacity of 10 MWp of Grid interactive solar PV/Thermal power generation projects can be set up in a State. A GBI of maximum of Rs. 12/kWh (for PV projects) and Rs. 10/kWh (for solar thermal projects) is decided by MNRE to be provided through IREDA for projects commissioned by 31st December, 2009. The maximum GBI to be given to a PV project is determined after deducting the power purchase rate at which the PPA is signed from a notional amount of Rs. 15/kWh (in case of PV) or Rs. 13/kWh (in case of solar thermal). Projects commissioned after 31st December, 2009, are eligible for a maximum incentive with 5% reduction and ceiling of GBI of Rs. 11.40/kWh (in case of PV) or Rs. 9.50/kWh (in case of solar thermal). The GBI approved for a Grid Interactive PV power project will be applicable for a maximum period of 10 years from the date of approval and regular power generation and power purchase from that project. MNRE, IREDA, concerned State Nodal Agencies and any independent organization appointed by MNRE/ IREDA are open to examine/ inspect the PV power plants under the scheme for performance monitoring.

Eligible Organizatio ns Eligible Projects

Generation based Incentives

Valid For

Monitoring

Solar Energy for Rural Applications i. For Remote Villages/HamletsInstallations

Incentives

for

Solar

PV

Name of the Remote Village Lighting/ Electrification Programmeiii Scheme Description The Remote Village Electrification Scheme of Ministry of New and Renewable Energy aims to provide lighting and basic electric facilities based on renewable energy with 90% Central Fiscal Assistance to the remote unelectrified villages & hamlets where providing grid connectivity is either not feasible or non-cost effective. Of the villages taken up for electrification under this scheme 6431 villages/hamlets have been covered through solar photovoltaic (power plants & Home lighting systems) technologies. Target The Programme is expected to cover 10,000 remote, unelectrified villages and hamlets and benefit around 1 million households.iv Policy Solar PV home lighting is a feasible and cost effective option in the very remote village. According to the Rural Electrification Policyv, Villages/habitations, where grid connectivity would not be feasible or not cost effective, off-grid solutions based on stand-alone systems may be taken up for supply of electricity so that every household gets access to electricity. Where neither standalone systems nor grid connectivity is feasible and if only alternative is to use isolated lighting technologies like solar photovoltaic, these may be adopted. Achieveme nt About 95%of the remote census villages under this scheme are supplied with Solar PV Home Lighting Systems. Each household has been provided with 2 lighting systems (providing 0.1 kWh of energy per day, cost Rs 13000-15000 per system per household) with 90% CFA and BPL households are provided single lighting system with 100% subsidy. General Category States (Rs.) 5895 11250 Special Category States (Rs.) 6165 11250

Central Financial Technolog Assistance y for SPV systems SPV home lighting systems Model-I (maximum) Solar PV home lighting system

Model-II SPV street lighting system 19602 Maximum CFA per household will be Rs.18, 000.

20578

ii.

Solar Energy Programme- For all Villages

Name of Solar Thermal Energy Demonstration Programmevi the Scheme Descriptio Solar Thermal Energy Demonstration Programme by the Ministry of n New & Renewable Energy provides financial support for procuring concentrating solar cookers and promotional incentives for box type solar cookers. Central Financial Assistance For Concentrat ing Solar Cookersvii Type of Cooker Solar Support to Users Service Charges to SNAs

Dish solar cooker 30% of total cost, Rs. 250 per cooker (Diameter 1.4 m, limited to Rs.1500/minimum) per cooker. 30% of eligible Rs. 2,500 per cooker capital cost, limited to Rs.15000/- per cooker Incentive per cooker to SNAs if the sale is made through their own outlets (Rs.) Incentive per cooker if the sale made by SNAs is through their associated promoters (Rs.) SNAs Associate d Promoter s 100 50

Community solar cooker for indoor cooking (Aperture area 7 sq. m., minimum) Incentives Types of solar to State cooker sold Nodal Agencies (SNAs) and associated promoters for sale of solar cookersviii

ISI marked box solar 200 cooker Non-ISI box solar 100 cooker but approved by SEC/RTCs

100 50

Solar Energy for Urban, Commercial and Industrial Applications i. Solar Water Heaters Name of Accelerated development and deployment of solar water the Scheme heating systems in domestic, industrial and commercial sectorsix Description The scheme intends to promote the widespread use of solar water heaters to save electricity and achieve peak load savings in urban areas by providing subsidies to the users of solar water heaters and incentives to BIS/MNRE approved manufacturers/ suppliers etc. Target of 1.4 million sq m of collector area has been set for 2008-09 & 2009-10. Interest / capital subsidy to end users of solar water heaters is available up to 31st March 2010 under this scheme after which it is to be reviewed for continuation for the rest of the 11th five year plan. The scheme is implemented through IREDA and other financial institutions Expenditure of Rs. 49.50 crore is planned to be incurred under the scheme.

Target Benefits

Implement ation Agencies Expenditur e

ii.

Green Buildings

Name of Energy Efficient Solar/ Green Buildingsx the Scheme Description The scheme intends to promote the construction of energy efficient solar/ green buildings with the provision of financial & promotional incentives to save electricity and do peak load savings in urban areas Target Benefits To add 5 lakh sq m of covered area in 2008-09 and 35 lakh sq m of covered area in the rest of the 11th five year plan period. Reimbursement of the registration or rating fee by MNRE, Incentives to Architects & Design Consultants and capital subsidy for SPV installations upto 1% of the total connected load for interior lighting and space conditioning. Also incentives to urban local bodies will be provided who announce rebates in property tax for energy efficient buildings rated under GRIHA. The Scheme is implemented through State Municipal Corporations/ government Bodies etc. Nodal Agencies/

Implement ation Agencies Expenditur

Expenditure outlay of Rs 49 crore is set for the activities under this

e iii.

scheme during 2008-09 and the rest of the 11th five year plan period. Solar/ Green Cities

Name of Development of Solar Citiesxi the Scheme Description Enabling Urban Local bodies to address the energy challenges at the city level which includes assessment of the current energy situation and future demand and development of action plans providing sustainable energy options. Target Benefits 60 cities/ towns with at least 1 city/ town in each state is planned to be set up as solar city Financial Provisions of Rs. 50 Lakhs per city/town include preparation of master plan, oversight of implementation during the five year plan duration, setting up of solar cell and promotional activities. The scheme will be implemented through urban local bodies of the cities. During the 11th five year plan period, an expenditure outlay of Rs 30 crore is planned.

Implement ation Agencies Expenditur e

iv.

Solar Photovoltaic Systems

Name of Demonstration and Promotion of Solar Photovoltaic Devices/ the Scheme Systems in Urban Areas & Industryxii Description Promotion of rooftop solar PV for diesel abatement, solar street lights, traffic signals, blinkers, power packs/inverters, solar illuminating hoardings & bill boards etc. during the rest of the 11 th five year plan period. Target Target to add 4.25 MW through Roof top systems and 750 kW for systems for electricity conservation during the rest of 11th five year plan period through solar PV systems Benefits Benefits of upto 50% of the cost of the systems to urban local bodies/ SNAs/Institutions not availing AD benefits v. Solar Air Heating/ Steam Systems and Akshay Urja Shops

Name of Promotion of Solar Thermal Systems for air heating/ Steam the Scheme generating applications, Solar buildings and Akshay Urja Shopsxiii Description To promote use of solar thermal systems for air heating, steam generation applications in buildings and reduce or conserve the consumption of electricity from conventional sources of energy and

Target

Benefits Implement ation Agencies Expenditur e

creation of a chain of retail outlets Akshay Urja Shops in all the districts. Targets for the year 2005-06: FPC based Solar Air Heating Systems: 6,000 sq.m. of collector area (minimum 25 systems) Solar Concentrating Systems: 4,000 sq.m. of dish area (minimum 15 systems) Demonstration Solar Buildings: 10 buildings in at least eight States. Akshay Urja Shops : 200 shops in at least 10 States To set up Akshay Urja shop in each district soft loan at an interest rate of 7% to a maximum of 85% of the cost of establishment will be provided The scheme is to be implemented through State Nodal Agencies/IREDA/Technical Institutions etc The expenditure for the scheme will be taken from the budget allocated under Solar Thermal Energy Programme.

MNRE: http://www.mnre.gov.in/pdf/guidelines_spg.pdf Accessed December 2010 MNRE: http://www.mnre.gov.in/pdf/guidelines_stpg.pdf Accessed December 2010 MNRE: http://www.mnre.gov.in/prog-rvlp.htm Accessed December 2010

ii

iii

iv

Continuation of Remote Village Electrification Programme Approved: The Indian News, August 27, 2009: http://www.thaindian.com/newsportal/india-news/continuation-of-remote-villageelectrification-programme-approved_100238897.html
v

Ministry of Power: 3.2-Approach to Rural Electrification http://www.powermin.nic.in/whats_new/pdf/RE%20Policy.pdf Accessed December 2010

vi

MNRE: http://www.mnre.gov.in/solar-tdau.htm Accessed December 2010 MNRE: http://mnre.gov.in/solar-finsupp.htm Accessed December 2010

vii

viii

MNRE: http://mnre.gov.in/solar-finsupp.htm Accessed December 2010 Accessed December 2010

ix

MNRE: http://www.mnre.gov.in/Solar-water-heaters/revised-SWHS-2008-09_2009-10.pdf Accessed December 2010

x

MNRE: http://www.mnre.gov.in/website-green-buildings/MNRE-scheme-green-buildings.pdf Accessed December 2010

xi

MNRE: http://www.mnre.gov.in/pdf/city-scheme.pdf Accessed December 2010 MNRE: http://www.mnre.gov.in/pdf/rtpsvs-features.pdf Accessed December 2010

xii

xiii

MNRE: http://www.mnre.gov.in/Solar%20air%20heating%20and%20steam%20systems/swhscheme.pdf Accessed December 2010