Question : Cost Reduction in Setting up of Solar Units

(a) whether there has been a significant growth in solar power sector in the country during the last three years and if so, the details thereof;
(b) the measures taken by the Government to ensure cost reduction in setting up of solar units;
(c) whether the Government has formulated any scheme and allocated funds to promote the installation of rooftop solar power systems and use the energy produced by it, only for domestic needs both in rural as well as in urban areas;
(d) if so, the details thereof; and
(e ) the number of solar pumps set up during the last three years and the current year, State/UT-wise?

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI R.K. SINGH)

(a) There has been a significant growth in solar power sector over the last three years in the country with the details of grid connected solar power capacity installed as under:
Year Cumulative capacity
(MW)
2016-17 12288.83
2017-18 21651.46
2018-19 28180.66

(b) The Government has taken various measures to reduce cost of solar power in the country. These inter-alia, include the following:
(i) Announcement of a target of installing 100 GW of solar energy capacity by 2022;
(ii) Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2021-22;
(iii) Fiscal & financial incentives such as Capital Subsidy, Viability gap funding (VGF), accelerated depreciation benefits etc;
(iv) Permitting 100% Foreign Direct Investment (FDI) under the automatic route in renewable energy sector;
(v) Issued guidelines for procurement of solar and wind power through tariff based competitive bidding process;
(vi) Waiving of Inter State Transmission System Charges and losses for inter-state sale of solar and wind power for projects to be commissioned up to December, 2022;
(vii) Raising funds from bilateral and multilateral finance and development institutions;
(viii) Implementation of Green Energy Corridor project to facilitate integration of large scale renewable generation capacity addition.


(c) and (d) The Phase II of Grid Connected Roof Top (GCRT) Programme approved in February 2019 provides for the Central Financial Assistance (CFA) of 40% of the benchmark cost or tendered cost, whichever is lower for residential grid connected rooftop systems upto 3 kW and 20% of the benchmark cost or tendered cost whichever is lower for residential grid connected rooftop systems of capacity 3 kW to 10 kW. There is no CFA for GCRT system above 10 kW in residential sector since solar power for such category is cost effective compared to grid tariffs applicable for such category of consumers. The Phase-II of GCRT programme also provides CFA upto 20% of benchmark cost or tendered cost whichever is lower, for Group Housing Societies/ Resident Welfare Associations ( GHS / RWA), for supply of power for common facilities. Under Phase II of GCRT programme Electricity Distribution Companies (DISCOMs) have been made as implementing agencies as they have direct access to the consumers, have an organised invoicing/billing/execution system and hence are best suited to manage distributed and relatively independent clients/prosumers. Incentives for the DISCOMs for installing additional capacity above baseline have also been provided for.
The scheme is applicable for urban as well as rural area.

(e):State/UT-wise details of solar pumps set up in the country during last three years and the current year are given at Annexure.

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