Nodal agency: Ministry of New and Renewable Energy

Policy brief

MNRE has approved guidelines for implementation of phase II of grid connected rooftop solar programme with a target of 40 GW installed capacity by 2026. Total financial support outlay for the scheme is INR 118 billion.

Key highlights

Component A Scheme targets addition of 4 GW capacity addition in residential segment.  
DISCOMs will be the nodal points for implementation of the programme and will invite expressions of interest for empanelment of agencies. Companies with bids within 25% of L1 bid would be empanelled for installation at L1 price. Minimum 10% of allocated capacity would be awarded to L1 bidder.
Capital subsidy of 40% for system size up to 3 kW and 20% for residual capacity up to 10 kW will be available. Total budget for capital subsidy is INR 66 billion.
For group housing societies, capital subsidy will be limited to 20% for installation up to 500 kWp capacity.
Consumers would also be eligible for subsidy if rooftop systems are installed by non-empanelled installers. 
Component B Incentives worth 5% of applicable system cost to DISCOMs – for annual installation above 10% of installed base capacity up to March 2019. Total budget for subsidy is INR 49.5 billion.
Procedure for implementation of component A
Procedure for implementation of component A Consumers will file application to set up rooftop solar systems at a national portal. DISCOMs will grant technical feasibility approval within 15 days of submission of application.
Installers must follow standards and specifications issued by MNRE for installation and enter into standard agreements with consumers. 
DISCOMs will grant net metering approval after installation of rooftop solar system.
DISCOMs will transfer subsidy to consumers after completing inspection of rooftop solar systems.