Grid-connected Rooftop Solar Scheme

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Grid-connected Rooftop Solar Scheme

The Ministry of New and Renewable Energy, Government of India is implementing Grid-connected Rooftop Solar Scheme (Phase-II) to generate solar power by installing solar panels on the roof of the houses. Under this scheme Ministry is providing 40% subsidy for the first 3 kW and 20% subsidy beyond 3 kW and upto 10 kW. The scheme is being implemented in the states by local Electricity Distribution Companies (DISCOMs).

Benefits of Grid-connected Rooftop Solar Scheme

  • Rooftop solar provides companies and residential areas the option of an alternative source of electricity to that provided by the grid.
  • While the main benefit of this is to the environment, since it reduces the dependence on fossil-fuel generated electricity, solar power can also augment the grid supply in places where it is erratic.
  • Rooftop solar also has the great benefit of being able to provide electricity to those areas that are not yet connected to the grid — remote locations and areas where the terrain makes it difficult to set up power stations and lay power lines.

Key-Points of Grid-connected Rooftop Solar Scheme

  • The Programmes will have substantial environmental impact in terms of savings of CO2 emission. Considering average energy generation of 1.5 million units per MW, it is expected that addition of 38 GW solar rooftop plants under Phase-II by year 2022 will result in CO2 emission reduction of about 45.6 tonnes per year.
  • The programme has directed employment potential. Besides increasing self-employment the approval is likely to generate employment opportunity equivalent to 9.39 lakh job years for skilled and unskilled workers.
  • Under this scheme, the Ministry is providing 40% subsidy for the first 3 kW and 20% subsidy beyond 3 kW and up to 10 kW.
  • The scheme is being implemented in the state only by DISCOMs.The DISCOMs have empaneled vendors through the bidding process and have decided rates for setting up a rooftop solar plant.
  • Subsidy will be available for the residential sector only and for availing the benefit of subsidy, indigenously manufactured PV Modules and Cells are to be used.
  • Performance-based incentives are provided to DISCOMs based on Rooftop Solar capacity achieved in a financial year over and above the base capacity i.e. cumulative capacity achieved at the end of previous financial year.

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