MNRE Amends Solar Power Scheme to Boost Electricity Access for Tribal Groups
Effective immediately, the amendments broaden the scope of the scheme to include the installation of solar mini-grids for household electrification.
March 27, 2024. By Abha Rustagi
Effective immediately, the amendments broaden the scope of the scheme to include the installation of solar mini-grids for household electrification, thereby extending its benefits to underserved communities.
The revisions, outlined in the Implementation Guidelines issued on January 4, 2024, come in response to requests from state implementing agencies. The primary change allows for the electrification of households (HHs) through the installation of solar mini-grids in PVTG habitations or villages. Previously, the scheme primarily focused on providing Solar Home Lighting Systems (SHLS) to individual households.
Under the amended provisions, a solar mini-grid of suitable capacity, complete with a battery bank, distribution lines, metering, and control equipment, may be installed for a cluster of households within a PVTG habitation. The MNRE will provide financial support in the form of a Capital Subsidy (CFA) limited to INR 50,000 per un-electrified household covered under the mini-grid scheme.
Crucially, the amendments offer flexibility in the implementation mode, allowing for either Capital Expenditure (CAPEX) or Renewable Energy Service Company (RESCO) models. In both cases, the MNRE's CFA support remains unchanged at INR 50,000 per household. However, if the CAPEX mode is chosen, the implementing agency is required to secure additional funding from the state government as necessary.
Furthermore, the responsibilities for operating and maintaining the solar mini-grid fall to the developer, who must ensure its upkeep for a minimum period of five years. This move not only extends electricity access to remote and marginalized communities but also promotes sustainable energy solutions in line with the government's renewable energy goals.
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