Guidelines for "Grid-Connected Rooftop and Small Solar Power Plants Programme"

The "Off-Grid & Decentralized Solar Applications" Scheme get administrative approval  by MNRE for continuation in the Phase II of the JNNSM during 12th Plan Period including 2014-15. Along with that Guidelines for "Grid-Connected Rooftop and Small Solar Power Plants Programme" was also laid down by MNRE.

There is a large potential available for generating solar power using unutilized space on rooftops and wastelands around buildings. Small quantities of power generated by each individual household, industrial building, commercial building or any other type of building can be used to partly fulfill the requirement of the building occupants and surplus, if any, can be fed into the grid. The roof-top SPV systems on building's roof space can be installed to replace DG gensets for operation during load shedding.

The cost of generating solar power at present is a little higher than the tariff charged from consumers by Distribution Licensees/DISCOMS in most cases (other than commercial). With the capital subsidy (upto30%) or so, it can be possible to generate power between Rs.5.0 -6.50 per unit for the next 20 years, which is cheaper than the diesel gen-set based electricity and this could also be cheaper than the cost at which most Distribution Licensees/DISCOMS would make power available to the same consumer. It is therefore important to popularize the use of solar energy so that people gain confidence and then its use can increase on its own.

Based on the experience gained during the 1st phase of the Mission, the programme is being expanded with a focus on energy access and replacement of fossil fuels with renewable energy. These systems still require interventions to bring down costs but the key challenge is to provide an enabling framework and support for entrepreneurs to develop markets. The scheme is completely demand driven.

The price of power generated from solar plants installed today is at par with or lower than the commercial tariff for consumers. The cost of solar power is on the decline trend while the cost of fossil fuel based electricity is increasing day by day.

Implementation: The grid connected rooftop solar photovoltaic power generation plants up to a maximum capacity of 500 kWp per project/system to generate electricity/power are eligible under the Programme. The minimum capacity of 1.0 kW are eligible under this programme. The programme can be implemented in Urban and Rural Areas as well. The programme encourages installation of rooftop solar photovoltaic power generation plant for self-consumption as well as supply/sale of electricity to the grid.

The projects up to 50 kWp can be implemented in programme mode. Beyond 50 kWp the implementation will be in project mode. The yearly target will be allocated to the States/SNAs depending upon their interest, demand and the capability in the beginning of the Financial Year (FY) or even in February for the preceding year. About 10% of eligible CFA can be released in advance at the time of target allocation.

The benchmark cost will be fixed by MNRE on yearly/half yearly basis. The Central Financial Assistance (CFA) will be 30 % / 70% of the benchmark cost or the actual project cost as applicable, whichever is lower.

The present benchmark price for photovoltaic systems without battery back­up support is considered as Rs.100/-per Wp for the systems upto 100 kWp and Rs. 90/- per kWp for the systems 100-500 kWp.

Following criteria is suggested for selection of voltage level in the distribution system for ready reference of the solar suppliers however, the connectivity level may be decided depending upon the site conditions and policies:

• Up to 10 kW solar PV systems the connectivity may be at Low Voltage single phase supply point.
• Between 10-100 kW solar PV systems, the connectivity may be at three phases low voltage supply
• Above 100 kWp upto 500 kWp capacity, system connection can be made at 11 kV/33 kV level.

The billing of buildings by DISCOM will be done on the basis of net energy drawn from the grid during the month on the tariff prescribed by the Regulatory Commission for commercial consumers or as finalized with the DISCOM.

Approval Mechanism: Not more than 50% of the capacity will be available for execution through the channel partner route. All the Channel Partners have to submit, within a 15 day period to be prescribed by MNRE. Targets are to be approved and communicated and the channel partners can start implementation at their own risk and investment. They will be responsible for following the scheme guidelines and MNRE specifications. Project will be sanctioned within 45 days of receiving of the project report from the project proponent. The proposals of the Channel Partners will be sanctioned on the appraisal and recommendations of the Project Appraisal Committee (PAC) constituted by MNRE. In no casethe total capacity allocated through Channel Partners should exceed 50% of the total capacity allocation in any particular quarter.

There would be a provision to promote hybrids like Wind-solar etc. within the defined CFA and subsidy limits for that particular component in this scheme.

Online monitoring will be compulsory for all systems more than 10 kWp capacity for PV and equivalent of 10 kW capacity for thermal systems. Real time monitoring may be specified by MNRE for large systems and online monitoring would be eventually extended to 1 kWp systems as well.

For further information, please refer to the attachment: