Cabinet approves Phase-II of Grid Connected Rooftop Solar Programme

The Cabinet Committee on Economic Affairs has given its approval (On February 19, 2019) for the Phase-II of Grid Connected Rooftop Solar Programme for achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022.

Main Features

  • The programme will be implemented with total central financial support of Rs.11,814 crore.
  • In the Phase-II Programme Central Financial Assistance (CFA) for the residential sector has been restructured with availability of 40% CFA for RTS systems up to 3 kW capacity and 20% for RTS system capacity beyond 3 kW and up to 10 kW.
  • For Group Housing Societies/Residential Welfare Associations (GHS/RAW), CFA will be limited to 20% for RTS plants for supply of power to common facilities, however, the capacity eligible for CFA for GHS/RAW will be limited to 10 kW per house with maximum total capacity upto 500 kWp, inclusive of RTS put in individual houses in the GHS/RWA.
  • CFA under residential category will be provided for 4000 MW capacity and the same will be provided on the basis of benchmark cost or tender cost, which is lower.
  • Central financial support will not be available for other category i.e., institutional, educational, social, government, commercial, industrial, etc.
  • Under Phase-II Programme, focus will be on increased involvement of DISCOMs. Performance based incentives will be provided to DISCOMs based on RTS capacity achieved in a financial year (i.e. 1st April to 31st March every year till the duration of the scheme) over and above the base capacity i.e. cumulative capacity achieved at the end of previous financial year.

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