Promotion of Solar Energy

The Ministry of New and Renewable Energy (MNRE) has been implementing various schemes in the country, including in Madhya Pradesh, to promote solar energy.

The names of the schemes are as under:

i. Development of Solar Parks and Ultra Mega Solar Power Projects.

  1. Scheme for setting up 1000 MW of Grid-Connected Solar PV Power Projects by the Central Public Sector Undertakings (CPSUs) and the Government of India organisations with Viability Gap Funding (VGF).
  2. Scheme for setting up 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments and Para Military Forces with VGF.
  3. Pilot-cum-demonstration projects for development of grid connected solar PV power plants on canal banks and canal tops.
  4. Bundling Scheme – 15000 MW grid-connected solar PV power plants through NTPC Ltd./NVVN.
  5. VGF Scheme for setting up of 2000 MW of Grid Connected Solar PV Power Projects through Solar Energy Corporation of India(SECI).

vii. VGF Scheme for setting up of 5000 MW of Grid Connected Solar PV Power Projects through SECI.

viii. Installation of Grid Connected Solar Rooftop Power Plants.

ix. Off-Grid Solar PV Scheme.

The details of quantum of funds provided to Madhya Pradesh under various schemes during the last two years are given in Annexure-I.

The details of provision of subsidy for consumption of solar energy are given in Annexure-II.

Above information was given by Minister of State (I/C) for New and Renewable Energy and Power Shri R. K Singh in a written reply in the Lok Sabha today.

ANNEXURE-I

Quantum of Funds provided to Madhya Pradesh under Various Schemes during the last two years

(Rs. in Crore)

Sl.

No.

Schemes 2016-17 2017-18
1. Development of Solar Parks and Ultra Mega Solar

Power Projects

56.56 13.47
2. Grid Connected Solar Rooftops Scheme 31.96 3.14
3. Roof Top PV and Small Solar Power Generation Programme (RPSSGP) Solar GBI Scheme 8.78 2.00
4. Off-Grid SPV Scheme 0.66 69.09
5. Scheme for Setting up of Grid Connected Solar PV

Power Projects by CPSUs and Govt. Organizations with Viability Gap Funding (VGF)

82.50 114.75
Total 180.46 202.45

ANNEXURE-II

DETAILS OF PROVISION OF SUBSIDY FOR USE OF SOLAR ENERGY

Sr.

No.

Scheme Central Financial Assistance (CFA) / Subsidy
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 islower
  • CFA @ Rs 25.00 lakh per park for DPR preparation of solar parks, conducting surveys,etc.
2. Operationalization of 300 MWSolar 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 25years.
  • The upper limits of the VGF are asfollows:
    1. Category-I: Rs.2.5 crore/MW for project capacity up to 5 MW or 30% of the project cost whichever is lower;
    2. Category-II: Rs. 2 crores/MW for project capacity greater than 5 MW up to 25 MW or 30% of the project cost whichever is lower;and
    3. Category-III: Rs. 1.5 crore /MW for project capacity greater than 25 MW or 30% of the project cost whichever islower.

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 and the tariff was revised from Rs. 5.50/KWh to Rs.4.50/kWh.

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 up to 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 (VGF) Support The Project developer is provided a VGF based on his bid. The upper limit for VGF is kept at Rs.1.0 Crore/MW with a pre- determined tariff of Rs. 4.50/kWh.
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 (VGF) Support The Project developer is provided a VGF based on his bid. The upper limit for VGF is kept at Rs. 1.0 crore/MW. SECI will select projects through competitive e-bidding based on minimum VGF sought (quoted in INR/MW), or there may be a provisionforquotingadiscountedtariff(quotedinINR/kWh)

with zero VGF.

Sr.

No.

Scheme Central Financial Assistance (CFA) / Subsidy
6. Grid Connected Rooftop CFA of up to 30% of project cost /bench mark cost (whichever is lower) is being provided for installation of Grid Connected Rooftop Solar Projects in Residential, Institutional and Social sectors in General Category States and up to 70% of the project cost/benchmark cost (whichever is lower) in Special Category States (i.e. North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman& Nicobar Islands).

For Govt. sector, achievement linked incentives are being provided. Subsidy/CFA is not applicable for commercial and

industrial establishments in private sector

7. Pilot-cum-demonstration project for development of grid connected solar PV power plants on canal banks and canal tops The Scheme has provision for Central Financial assistance as follows:

  • 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 SPVprojects.

The Scheme is closed for new sanctions.

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 The Scheme has provision for Viability Gap Funding as follows:

  • Rs.1 Cr. /MW, for projects where domestically produced Cells and Modules are used
  • Rs.50 Lakh /MW, for projects where domestically produced Modules areused.

The Scheme is closed for new sanctions.

9. Off-Grid scheme- SPV lighting systems and power plants, Solar Pumps 1. Lighting Systems

  1. Street Lights with Lead acidbatteries:

Benchmark Cost = Rs. 300/Wp: CFA=Rs. 90/Wp

  1. Street lights with Lithium Ferro Phosphatebatteries:

Benchmark cost= Rs. 435/Wp: CFA= Rs. 130.50/Wp

  1. Power plants with 6 hours’ batterybank:

Benchmark Cost = Rs. 100/Wp: CFA=Rs. 30/Wp

  1. Solar Lamp:

Benchmark Cost = Rs. 250/Wp: CFA=Rs. 212.50/Wp

This was informed by Minister of State (I/C) for New and Renewable Energy and Power Shri R. K Singh in a written reply in the Lok Sabha today.

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