Union Power & NRE Minister Reports 63% Increase in Expenditure for Promoting Solar Energy in Last 4 Years; Gives Overview of Ongoing Schemes

The Ministry of New and Renewable Energy (MNRE) in India has been taking significant steps towards promoting solar energy in the country. MNRE’s schemes and programs for solar energy offer a wide range of benefits, including better access to energy, reduction in environmental pollution, and employment opportunities.

One of the ongoing schemes is the Rooftop Solar Programme Phase-II, which aims to add 4000 MW rooftop solar capacity in the residential sector through the provision of Central Financial Assistance (CFA). Additionally, Discoms (distribution companies) are incentivized for the initial 18000 MW rooftop solar capacity addition. The scheme offers CFAs of up to 40% for capacity up to 3 kWp and up to 20% for capacity beyond 3 kWp and up to 10 kWp for the residential sector. For Group Housing Societies (GHS)/Resident Welfare Associations (RWA), CFAs of up to 20% for capacity up to 500 kWp are provided (limited to 10 kWp per house and total up to 500 kWp). Discoms can receive incentives of up to 10% of the project cost depending on achievements in capacity addition above baseline.

Another significant scheme is the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan) scheme, which is demand-driven and open to all farmers of the country for implementation as per guidelines issued for the scheme. The scheme comprises three components:

Component A involves setting up 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants on barren/fallow/pasture/marshy land of farmers, which can be installed by individual farmers, Solar Power Developers, Cooperatives, Panchayats, and Farmers Producer Organizations. Benefit available: Procurement Based Incentive (PBI) to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI that payable to DISCOMs is up to Rs. 33 Lakh per MW.

Component B involves the installation of 20.00 Lakh Stand-alone Solar Pumps in off-grid areas. Benefit available: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agriculture pump is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, 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 is provided.

Component C involves Solarisation of 15 Lakh Grid Connected Agriculture Pumps through (i) Individual Pump Solarisation and (ii) Feeder Level Solarisation. Benefit available: (a) Individual Pump Solarisation: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, 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 is provided. (b) Feeder Level Solarisation: Agriculture feeders can be solarized by the State Government in CAPEX or RESCO mode with CFA of Rs. 1.05 Crore per MW.

MNRE also provided the data which shows the funds allocated and expenditure made on the promotion of solar energy in the last three years, as well as the current year. In 2019-20, the government allocated Rs. 2280.51 crores for this purpose and spent Rs. 1985.12 crores. The following year, in 2020-21, the allocated funds decreased to Rs. 1776.24 crores and the expenditure decreased further to Rs. 1199.28 crores.

However, in the current year, 2021-22, the allocated funds increased significantly to Rs. 2685.26 crores and the expenditure also increased to Rs. 2202.46 crores. It is also worth noting that the allocated funds for the next year, 2022-23, are even higher at Rs. 3604.80 crores, indicating a strong commitment by the government towards the promotion of solar energy.