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Scheme launched by Indian government to promote Solar Energy

Power News - Published on Wed, 03 Jan 2018

Image Source: backwoodssolar.com
Indian Minister of State for Power and New & Renewable Energy, Mr Raj Kumar Singh, in a written reply to a question on schemes initiated by Government to promote Solar Power in the country, in Lok Sabha informed that in order to promote solar energy, the Government have launched several schemes in the country. The details of schemes and the component of Central Financial Assistance therein is given below:

1. Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects
Rs.20 lakhs/MW or 30% of the project cost including Grid-connectivity cost, whichever is lower
CFA @ Rs 25.00 lakh per park for DPR preparation of solar parks, conducting surveys, etc.

2. Operationalization of 300 MW Solar PV Projects by defence establishment and para military forces
The bidders selected on the basis of bids for minimum VGF requirement for the project with commitment to supply solar power at Rs. 5.50/KWh for 25 years. 
The upper limits of the VGF are as follows:
Category-I: Rs.2.5 crore/MW for project capacity up to 5 MW or 30% of the project cost whichever is lower;
Category-II: Rs. 2 crore/MW for project capacity greater than 5 MW up to 25 MW or 30% of the project cost whichever is lower; and
Category-III: Rs. 1.5 crore /MW for project capacity greater than 25 MW or 30% of the project cost whichever is lower.
Keeping in view the technology upgradation and economies of scales, the upper limit of VGF was revised on 17.02.2017 to @ Rs. 1.10 Cr./MW for all projects irrespective of sizes for which tenders were not brought out.

3. Scheme for Setting up of 750 MW Grid-connected Solar PV Power Projects under Batch-1 of Phase-II of JNNSM with Viability Gap Funding Support
The selection of the bidders has been based on the Viability Gap Funding (VGF) required for the project in an ascending order upto the full capacity. Viability Gap Funding (VGF) is limited to 30% of the project cost or 2.5 crore per MW, whichever is lower. Solar Energy Corporation of India (SECI) has signed PPA with such project developers for purchasing entire power from the project for 25 years at 5.45 Rs. per unit (4.75 Rs. per unit for projects availing accelerated depreciation).

4. Scheme for Setting up of 2000 MW Grid-connected Solar PV Power Projects under Batch-III of Phase-II of JNNSM with Viability Gap Funding Support
The Project developer is provided a viability gap funding based on his bid. The upper limit for VGF is kept at Rs.1.0 Crore/MW for open category (Rs. 1.31 Crore/MW for projects in DCR category).

5. Scheme for Setting up of 5000 MW Grid-connected Solar PV Power Projects under Batch-IV of Phase-II of JNNSM with Viability Gap Funding Support
The Project developer is provided a Viability Gap Funding based on his bid. The upper limit for VGF is kept at Rs. 1.0 crore/MW for open category and Rs. 1.25 crore/MW for projects in DCR category. SECI will select projects through competitive e-bidding based on minimum VGF sought (quoted in INR/MW), or there may be a provision for quoting a discounted tariff (quoted in INR/kWh).

6. Grid Connected Rooftop
CFA is 30% of the benchmark cost for general and 70% CFA for North Eastern and Special Category States for residential, social and institutional sector.

7. Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops
Financial support of Rs.3 crore/MW or 30% of the project cost, whichever is lower, for Canal Top SPV projects and Rs. 1.5 crore/MW or 30% of the project cost, whichever is lower, for Canal Bank SPV projects.
Total CFA of upto Rs.225 crore for 100 MW (50 MW on Canal Tops and 50 MW on Canal Banks) to be disbursed over a period of maximum 2 years post sanctioning of the plants as under:
upto 40% on sanctioning of the projects.
60% on successful commissioning of the projects.
Service charge to SECI @1% of project cost.

8. Scheme for setting up of 1000 MW of Grid-Connected Solar PV Power projects by Central Public Sector Undertakings (CPSUs) under Batch- V of Phase II of JNNSM
Viability Gap Funding (VGF) provided through SECI at a fixed rate of Rs. 1 Cr/ MW for projects where domestically produced cells and modules are used and Rs. 50 lakh/ MW in cases where domestically produced modules are used. 
VGF released in two tranches as follows:
50% on successful commissioning of the full capacity of project (COD).
Balance 50% after one year of successful operation of the project.

9. Off-Grid scheme- SPV lighting systems and power plants, Solar Pumps
1. Lighting Systems
A. Home lights/Lanterns/Street Lights with Lead acid batteries: Benchmark Cost = Rs. 340/Wp:
CFA=Rs. 102/Wp
 B. Street lights with Lithium Ferro Phosphate batteries: Benchmark cost= Rs. 475/Wp: CFA= Rs. 142.5/Wp

2. Power packs with battery bank @7.2 VAh/Wp
A. Up to 300 Wp: Benchmark Cost = 200/Wp:
CFA=Rs. 60/Wp
B. 300 Wp to 1 kWp: Benchmark Cost = Rs. 135/Wp: CFA=Rs. 40.5/Wp

3. Solar Power plants with battery bank @7.2 VAh/Wp and capacity up to 10 kWp:
Benchmark Cost = Rs. 135/Wp: CFA=Rs. 40.5/Wp

4. Solar Pumps
A. Up to 3 HP (DC): Benchmark Cost = Rs. 1,20,000/HP: CFA=Rs. 30,000/HP
B. 3HP to 5 HP (DC): Benchmark Cost = Rs. 95,000/HP: CFA=Rs. 19,000/HP
C. Up to 3 HP (AC): Benchmark Cost = Rs. 1,00,000/HP: CFA=Rs. 25,000/HP
D. 3HP to 5 HP (AC): Benchmark Cost = Rs. 85,000/HP: CFA=Rs. 17,000/HP

Note: CFA stands for Central Financial Assistance.
The benefits can be availed by applying under these schemes in accordance with guidelines of respective schemes.

Source :

Posted By : Nanda Koijam on Wed, 03 Jan 2018
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