Ministry of New and Renewable Energy

A number of incentives are being provided for growth of the renewable energy sector in the country: Union Power & NRE Minister Shri R. K. Singh

Posted On: 20 JUL 2023 6:34PM by PIB Delhi

The Ministry is implementing various schemes and programmes which have provisions of incentives for Renewable Energy deployment. These include:

    1. Grid Connected Rooftop Solar PV Power Projects
    2. Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for grid-connected Solar Photovoltaic (PV) Power Projects by the Government Producers
    3. PLI Scheme ‘National Programme on High Efficiency Solar PV Modules’
    4. Solar Park Scheme
    5. PM-KUSUM scheme
    6. Green Energy Corridor Scheme
    7. Biomass Programme
    8. Waste to Energy Programme
    9. Biogas Programme
    10. R&D programme
    11. National Green Hydrogen Mission

The details of incentives being provided as Central Financial Assistance (CFA) by the Ministry under these schemes/ programmes are given in Annexure.

During the year 2023-24, as on 30.06.2023, a total of 4.48 GW renewable energy capacity has been installed in India. This includes 3.32 GW Solar Power, 1.14 GW Wind Power, 0.01 GW Small Hydro Power, and 0.01 GW Bio-Power.

On the basis of details received from Madhya Pradesh Urja Vikas Nigam Ltd. (MPUVNL), the details of implementation of major projects related to renewable energy in Khargone-Barwani Parliamentary Constituency is as under:-

Bio mass registered projects 1.5 MW at Village-Mendrana, Tehsil-Pansemal, District-Barwani.

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Annexure

 

Incentives being provided as Central Financial Assistance (CFA) for the implementation of major renewable energy schemes/ programmes.

 

Scheme/ Programmes

Incentive presently eligible as per the Scheme

a)   Grid   Connected   Rooftop Solar PV Power Projects

  1. For Residential Sector
    • Central Financial Assistance (CFA) up to 40% for capacity up to 3 kWp
    • CFA up to 20% for capacity beyond 3 kWp and up to 10 kWp
    • CFA up to 20% for GHS/RWA capacity up to 500 kWp (limited to 10 kWp per house and total upto 500 kWp)
  2. For Discoms

Incentives up to 10% of project cost depending upon achievements in capacity addition above baseline.

Vide its OM dated 27.01.2023, Ministry has fixed the CFA for the entire country. The revised CFA rates would be applicable on all future bids and the bids which are scheduled to be closed after 15 days of issuance of this OM. The revised rates are as follows:

For general category States/UTs:

  1. Individual Household - For first 3 kW: Rs. 14588/ kW and for RTS capacity beyond 3 kW and upto 10 kW: Rs. 7294/kW.
  2. Resident Welfare Associations/Group Housing Societies (RWA/GHS) - Rs. 7294/kW for common facilities up to 500 kWp @ 10 kWp per house. For special category States/UTs:
  1. Individual Household - For first 3 kW: Rs. 17662/ kW and for RTS capacity beyond 3 kW and upto 10 kW: Rs. 8831/kW.
  2. Resident Welfare Associations/Group Housing Societies (RWA/GHS) - Rs. 8831/kW for common facilities up to 500 kWp @ 10 kWp per house.

b) Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for grid-connected Solar Photovoltaic (PV) Power Projects by the Government

Producers

Viability Gap Funding (VGF) support up to Rs 55 lakhs per MW to the CPSUs/Govt. Organizations entities selected through competitive bidding process.

c) PLI Scheme ‘National Programme on High Efficiency Solar PV Modules’

The beneficiaries are eligible for Production Linked Incentive (PLI) on production and sale of solar PV modules. The quantum of PLI eligible for disbursal depends upon: (i) quantum of sales of solar PV modules; (ii) performance parameters (efficiency and temperature coefficient of maximum power) of solar PV modules sold; and (iii) percentage of local

value addition in modules sold.

d) Solar Park Scheme

Up to 25 lakhs per Solar park, for preparation of Detailed Project Report (DPR).

20 Lakh per MW or 30% of the project cost, whichever is lower, for development of infrastructure.

e) PM-KUSUM scheme

Component A: Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants

Benefit available: Procurement Based Incentive (PBI) to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI payable to DISCOMs is up to Rs. 33 Lakh per MW.

Component B: Installation of 20.00 Lakh Stand-alone Solar Pumps

Benefit available: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agriculture pump is provided.

 

Scheme/ Programmes

Incentive presently eligible as per the Scheme

 

However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump is provided.

Component C: Solarisation of 15 Lakh Grid Connected Agriculture Pumps including through feeder level solarisation

Benefit available:

  1. Individual Pump Solarization: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh and Uttarakhand, Lakshadweep and A&N Islands, CFA of 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component is provided.
  2. Feeder Level Solarization: Agriculture feeders can be solarized by the State Government in CAPEX or RESCO mode with CFA of Rs. 1.05 Crore per MW as provided by MNRE. However in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarkhand, Lakshadweep

and Andaman & Nicobar Island, CFA of Rs. 1.75 crore per MW is provided.

f)    Green    Energy    Corridor Scheme

(for development of intra-state transmission system for RE

projects)

GEC Phase-I: CFA of 40 % of DPR cost or awarded cost whichever is lower. GEC Phase-II: CFA of 33 % of DPR cost or awarded cost whichever is lower.

g) Biomass Programme

  1. For Briquette/Pellet manufacturing plants: Rs. 9.00 Lakhs/ MTPH (Maximum CFA- Rs. 45.00 Lakh per project)
  2. For Non-Bagasse Cogeneration Projects: Rs. 40 Lakhs/ Megawatt

(Maximum CFA- Rs. 5.00 Crore per project)

h) Waste to Energy Programme

  1. for Biogas generation: Rs 0.25 crore per 12000 cum/day (Maximum CFA- Rs.5.00 crore/project)

 

  1. for    BioCNG/Enriched    Biogas/Compressed   Biogas    generation: (Maximum CFA- Rs.10 crore/project)
    1. BioCNG generation from new Biogas plant- Rs 4.0 Crore per 4800 Kg/day;
    2. BioCNG generation from existing Biogas plant- Rs 3.0 Crore per 4800 Kg/day;

 

  1. for Power generation based on Biogas (Maximum CFA- Rs. 5.00 crore/project):-
    1. Power generation from new biogas plant: Rs 0.75 Crore per MW
    2. Power generation from existing biogas plant: Rs 0.5 crore / MW

 

  1. for Power generation based on bio & agro-industrial waste (other than MSW through incineration process):- Rs. 0.40 crore/MW (Maximum CFA - Rs.5.00 Crore/Project)

 

  1. for Biomass Gasifier for electricity/ thermal applications:
  1. Rs. 2,500 per kWe with duel fuel engines for electrical application
  2. Rs. 15,000 per kWe with 100% gas engines for electrical application
  3. Rs. 2 lakh per 300 kWth for thermal applications.

 

Note:

    • In case, the Waste to Energy plants are set up in Special Category States (NE Region, Sikkim, Himachal Pradesh and Uttarakhand), Jammu & Kashmir, Ladakh, Lakshadweep and Andaman & Nicobar Islands, the eligible CFA would be 20% higher than Standard CFA pattern given above.
    • Biogas/BioCNG/Power (biogas based) generation plants based on cattle dung as main feedstock set up by Gaushalas independently or through joint ventures/partnerships will be eligible for 20% higher

 

Scheme/ Programmes

Incentive presently eligible as per the Scheme

 

CFA than  Standard CFA pattern given  above. These  Gaushalas

(Shelters) should be registered with the respective State Government.

i)Biogas Programme

  1. Rs. 9800/- to Rs. 70,400/- per plant based on size of the plant in cubic meter for small biogas plants (1-25 cubic meter/day plant capacity);

 

  1. Rs. 35,000/- to Rs. 45,000/- per kilowatt for power generation and Rs. 17,500 /- to Rs. 22,500/- per kilowatt equivalent for thermal applications (25 - 2500 cubic meter/day plant capacity) .

 

The eligible CFA would be 20% higher than Standard CFA in for NER, Island, Registered Gaushalas and SC/ST beneficiaries

j) R&D programme

The Ministry encourages research and technology development proposals in collaboration with the industry and provides upto 100% financial support to Government/non-profit research organizations and upto 50- 70% to Industry, Start-ups, Private Institutes, Entrepreneurs and

Manufacturing units.

k) National Green Hydrogen Mission

The SIGHT scheme guidelines under the Mission have been notified for Electrolyser Manufacturing and Mode-I for Green Hydrogen production.

 

1. SIGHT programme for Electrolyser manufacturing has an allocation of Rs. 4440 crores by 2029-30. The incentives start from Rs. 4440 per kW in the first year and end at Rs. 1480 per kW in the fifth year.

 

SIGHT programme for Green Hydrogen production (Mode-I) provides incentives for Green Hydrogen production, which are capped at Rs. 50/kg

, Rs. 40/kg and Rs. 30/kg for the first, second and third year respectively.

 

This information was given by The Union Minister of New Renewable Energy & Power Sh. R. K. Singh in Lok Sabha in a written reply today.

   

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AM/DP



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