MNRE Slashes Benchmark Costs for Grid-Connected Rooftop Solar PV Systems for FY21

With an aim to provide further boost to the rooftop solar segment, Ministry of New and Renewable Energy (MNRE) has set reduced benchmark costs for FY 2020-21 for the grid-connected rooftop solar photovoltaic (PV) systems.

According to the Ministry, the newly issued benchmark costs will be applicable for all the Letter of Awards (LoAs) to be issued and/or empanelment of developers/vendors to be done after July 31, 2020 by the implementing agencies in the states/UTs.

The MNRE has issued benchmark costs under different capacity ranges, and these would be calculated based on the inverter capacity or the SPV module array capacity, whichever is lower.

Further, the benchmark costs has been issued under two categories i.e. for ‘General Category States/UTs’ and ‘special category states including North-Eastern states including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, Andaman & Nicobar and Lakshadweep Islands’.

The capacities has been divided into 1 kW, >1 to 2 kW, >2 to 3 kW, >3 to 10 kW, >10 to 100 kW, and >100 to 500 kW respectively. Now, the benchmark costs for ‘General Category States/UTs’ FY21 has been set at Rs 47 per Watt, Rs 43 per Watt, Rs 42 per Watt, Rs 41 per Watt, Rs 38 per Watt, and Rs 36 per Watt respectively.

However in FY20, the benchmark cost for ‘General Category States/UTs’ were Rs 54 per Watt for sizes between 1 kW and 10 kW, Rs 48 per Watt for sizes between 10 kW and 100 kW, and Rs 45 per Watt for sizes between 100 kW and 500 kW respectively.

For ‘Special Category States’, the benchmark costs for FY21 has been set at Rs 52 per Watt, Rs 47 per Watt, Rs 46 per Watt, Rs 45 per Watt, Rs 42 per Watt, and Rs 40 per Watt respectively, for capacities of 1 kW, >1 to 2 kW, >2 to 3 kW, >3 to 10 kW, >10 to 100 kW, and >100 to 500 kW respectively.

While during FY20, the benchmark costs for ‘Special Category States’ were Rs 59 per Watt for sizes between 1 kW and 10 kW, Rs 53 per Watt for sizes between 10 kW and 100 kW, and Rs 50 per Watt for sizes between 100 kW and 500 kW respectively.

The Ministry also said that the separate benchmark cost for ‘Special Category States’ will be applicable for projects under phase II of the program only.

Meanwhile, these benchmark costs are inclusive of the total system costs, including PV solar modules, inverters, balance of systems including cables, switches/ circuit breakers/ connectors/ junction boxes, mounting structure, earthing, lightening arrester, cost of meters (if any other than net meter), local connectivity cost, cost of civil works, foundations etc. and its installation, commissioning, transportation, insurance, capital cost of online monitoring, comprehensive maintenance charges for 5 years, applicable fees and taxes etc.

Significantly, these benchmark costs didn’t include net metering costs and battery back-up costs.

To get the MNRE document click on PDF