MNRE Offers Up to INR 2 Crore Support for Concentrating Solar Thermal Projects

Ministry of New and Renewable Energy (MNRE) has invited proposals to promote concentrating solar thermal (CST) technology for industrial process heating, offering financial support of up to 50 percent of the project cost, capped at INR 2 crore per project. The assistance may be provided as viability gap funding (VGF) under the Renewable Energy Research and Technology Development (RE-RTD) Programme.

The call will remain open until October 7, 2026. It aims to accelerate the adoption of CST and thermal energy storage (TES) for clean and reliable industrial heat, while reducing fossil fuel consumption and promoting indigenous development of efficient and cost effective technologies.

MNRE is seeking commercially viable and scalable solar thermal solutions that can be piloted and demonstrated within existing industrial processes. The projects are expected to establish technical feasibility, economic viability, scalability and replicability, creating a pathway for wider commercial deployment and replacement of fossil fuel based industrial heating.

The call identifies several potential technologies, including parabolic trough systems operating from 60°C to 400°C, linear Fresnel systems from 60°C to 250°C, parabolic dish systems from 100°C to 500°C and power tower systems from 150°C to 600°C. Solar PV coupled with heat pump technology capable of providing temperatures of up to 90°C or more is also covered. The technologies listed are indicative and not exhaustive.

Potential applications span automotive, breweries, cement, ceramics, chemicals, dairy, food processing, glass, iron and steel, leather and footwear, non ferrous metals, petroleum refineries, pharmaceuticals, plastics and polymers, pulp and paper, rubber, textile dyeing and hospitality.

Under the programme, suitable industrial clusters will be identified based on factors such as process temperature, thermal energy demand, existing fossil fuel consumption, potential for fossil fuel substitution, solar resource availability and techno economic feasibility.

Selected projects will demonstrate CST based process heat solutions integrated with existing industrial systems, including thermal storage and hybrid systems. Developers will be responsible for operation and maintenance of the installed systems for at least five years to ensure sustained performance and reliability.

The programme will also support documentation of successful CST installations, development of best practices and standard guidelines, and the creation of replicable business models to facilitate wider commercial deployment.

The call is open to industries engaged in the manufacture, development, deployment or utilisation of solar thermal technologies, including beneficiary industries participating through consortium arrangements. MNRE will provide partial capital expenditure support of up to 50 percent, subject to the INR 2 crore per project ceiling.

Interested organisations can submit proposals through the MNRE research portal. Proposals will be assessed under the RE-RTD Programme guidelines, with a dedicated committee constituted for evaluation.