MNRE Issues Phase-2 Norms For Rooftop Solar Project

• Under the second phase, 22 GW of rooftop solar PV projects must be set up
• Incentives to discoms will be based on their achievement towards the initial 18,000 MW of rooftop solar projects
• Discoms will also have to provide online monitoring system to ensure the functioning of all the RTS plants

The Union Ministry of New and Renewable Energy (MNRE) issued guidelines to implement the second phase of its grid-connected rooftop solar photovoltaic program. Under the second phase, 22 GW of rooftop solar PV projects must be set up.

The major components of the second phase of the program are:

1) RTS projects in the residential sector

• To install the grid-connected RTS projects in residential sectors, central financial assistance (CFA) of 4,000 MW will be provided to government-owned discoms.
• For RTS systems up to 3 kW capacity, higher CFA up to 40 per cent will be given, while for that above 3 kW and up to 10 kW, the CFA would be limited to 20 per cent.
• The CFA would be limited to 20 per cent for RTS plants that supply power for common facilities in group housing societies or residential welfare associations. The capacity will be limited to 10-kilowatt peak (kWp) per house and total not more than 500 kWp.
• Only the government-owned discoms will be eligible to avail an advance CFA up to 30 per cent. For private discoms, CFA will be given on a reimbursement basis. 
• Institutional, educational, social, government, commercial and industrial sectors will not be provided with CFAs.

2) Incentives to discoms

• The discoms will be provided with incentives because they will incur additional expenses in terms of more man-power, creating infrastructure, capacity building, awareness, etc, to implement the project.
• Thus, the incentive will be based on their achievement towards the initial 18,000 MW of rooftop solar projects.
• The incentives may be provided for each megawatt peak capacity of solar rooftop, added by them in their distribution area over and above 10 per cent of base capacity installed at the end of the previous year.
• The discoms will also have to provide online monitoring system to ensure the functioning of all the RTS plants.