Govt. Schemes and  Subsidy

Both the Central Government as well as State Nodal Agencies offer subsidy schemes to the people for installing rooftop PV systems. This encourages people to exploit renewable energy and to cut their electricity bill. Govt has launched many schemes and provides financial assistance as well e.g.

  • Grid Connected Rooftop Solar Programme

  • Solar Pumps and Grid Connected Solar Power Plants

  • Jawaharlal Nehru National Solar Mission (Jnnsm)

  • Development Of Solar Park Scheme

  • Uday Scheme

  • SECI Scheme

Grid Connected Rooftop Solar Programme

The CFA has been restructured and higher CFA up to 40 % will be given for RTS systems up to 3 kW capacity. For RTS systems of capacity above 3 kW and up to 10 kW, the CFA of 40% would be applicable only for the first 3 kW capacity and for capacity above 3 kW the CFA would be limited to 20 %. The residential sectors users may install RTS plant of  even higher capacity as per their requirement and the respective SERC regulation; however, the CFA would be limited for first 10 kWp capacity RTS plant as mentioned above.

Solar Pumps and Grid Connected Solar Power Plants

The Government has approved launch of new scheme for farmers for installation of solar pumps and grid connected solar power Plants, with an objective of providing financial and water security to farmers. The scheme consists of three components:


(i) Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected Renewable Power Plants.


(ii) Component-B: Installation of 17.50 lakh standalone Solar Powered Agriculture Pumps.


(iii) Component-C: Solarisation of 10 Lakh Grid-connected Solar Powered Agriculture Pumps.

The power generated will be purchased by Discoms at a feed-in-tariff (FiT) determined by respective State Electricity Regulatory Commission (SERC) for which PPA will be signed by Discom for a period of 25 years. In case, the aggregate capacity offered by applicants is more than notified capacity for a particular substation, bidding route will be followed to select power generators as per guidelines issued by MNRE and in such cases the FiT will be the ceiling tariff for bidding. MNRE will also devise a model Power Purchase Agreement.

The power projects under the scheme would be implemented on any land, including agricultural lands where solar plants may be installed in stilt fashion and with adequate spacing between panel rows for ensuring that farming activity is not affected. The bidding may be renewable energy source agnostic, with the evaluation parameter being the tariff offered, irrespective of the renewable energy source (ground or stilt mounted solar, wind, bio-mass, waste to energy or small hydro). The farmer or other eligible bidders would be free to adopt any renewable energy source or technology while responding to the bid. However, the State Government, if they wish, can call for bids specifically only for solar plants to be installed on stilts, especially on cultivable lands, so that the farmers continue to get the opportunity to cultivate the land, apart from enjoying lease rent.

Government of India will provide a Procurement Based Incentive (PBI) to the Discoms @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar/ other renewable power under this scheme. The PBI will be given to the Discoms for a period of five years from the Commercial Operation Date of the plant. Therefore, the maximum PBI to be given to a Discom will be Rs. 33 Lakh per MW.

Jawaharlal Nehru National Solar Mission (JNNSM)

Te Jawaharlal Nehru National Solar Mission also called  National Solar Mission is one of the eight key National Mission’s comprising India’s NAPCC. The objective of this solar scheme is to establish India as a global leader in the solar sector by creating the policy conditions. The Mission has set the ambitious target of deploying 20,000 MW of grid-connected solar power by 2022, which was revised to 1,00,000 MW by 2022 during June 2015.

Development of Solar Park Scheme

MNRE has formed a scheme aiming to set solar parks in various states, each with a capacity of above 500KW. The Scheme proposes to offer financial support by the government to establish and facilitate infrastructure necessary for setting up solar power plants. MNRE is executing a scheme for the development of at least 25 solar parks with a combined capacity of at least 20,000 MW.

UDAY Scheme

UDAY or Ujjwal Discom Assurance Yojna was launched in November 2015 as a revival package for electricity distribution companies of India initiated by the Government of India with the idea to find a permanent solution to the financial mess that the power distribution is in. It aims at reforming the power sector, operational improvement, development in renewable energy, reduction of cost of generation of power, energy efficiency, and conservation.

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