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Economy and Finance

Economy and Finance

Grid Connected Solar Rooftop Programme

15 Jan 2024 Zinkpot 164
  1. The Grid Connected Solar Rooftop Programme is an initiative by the Ministry of New and Renewable Energy, Government of India, intending to achieve a cumulative installed capacity of 40,000 MW from Grid Connected Rooftop Solar (RTS) projects.
  2. The program offers central financial assistance (CFA) to residential electricity consumers who install grid-connected rooftop solar systems.
  3. Key features of the program include:
    • Central Financial Assistance (CFA): The program provides financial support to residential consumers who install grid-connected rooftop solar systems. The CFA can be applied through the National Portal for Rooftop Solar or through State DISCOMs portals.
    • Component A: CFA to the residential sector – 4 GW. This component aims to encourage residential consumers to install grid-connected rooftop solar systems and avail of the subsidy.
    • Component B: Incentives to DISCOMs – for initial 18 GW capacity. This component incentivizes distribution companies to promote the installation of grid-connected rooftop solar systems.
    • Net Metering: Grid-connected rooftop solar systems can work on a net metering basis, wherein the beneficiary pays for the electricity imported from the grid. Alternatively, two meters can be installed to measure the export and import of power separately, or a mechanism based on gross metering at mutually agreed tariffs can be adopted.
    • Feed-in-Tariff: There is a provision of a feed-in-tariff for the sale of excess solar energy generated by the grid-connected rooftop solar system to the grid.
    • Battery Backup: Grid-connected rooftop solar systems can be set up with battery backup to ensure uninterrupted power supply during power cuts or periods of low solar radiation.
    • Business Models: Solar rooftop PV systems can be set up under two business models – CAPEX and RESCO. In the CAPEX model, the entire investment comes from the power consumer, while in the RESCO model, the investment is made by the developer, and the consumer pays for the solar energy generated.
    • Potential: India has a huge potential for deployment of grid-connected rooftop solar photovoltaic power systems, with a capacity of 124 GWp estimated by a study conducted by TERI.
  4. This program has been implemented in multiple phases. The current phase, Phase II, was approved by the Cabinet Committee on Economic Affairs (CCEA) and aims to achieve a cumulative capacity of 40,000 MW from Rooftop Solar (RTS) projects by 2026.
  5. The programme has been extended until March 8, 2026, without any financial implications and will be implemented with the original outlay
  6. The goals and objectives of Phase II of the Grid Connected Rooftop Solar Programme are as follows:
    • To achieve a cumulative capacity of 40,000 MW from Rooftop Solar (RTS) projects by 2026
    • To provide financial support to residential consumers who install grid-connected rooftop solar systems
    • To encourage residential consumers to install grid-connected rooftop solar systems and avail of the subsidy
    • To incentivize distribution companies to promote the installation of grid-connected rooftop solar systems
  7. The programme has introduced a centralized monitoring platform for various solar PV based plants, a subsidy of 40% for 1-3 kW and 20% for capacities above 3 kW for consumers, and a hassle-free application process through the 'National Portal For Rooftop Solar'.
     

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