T17 2019/10/24 08:16:28.039709 GMT+0530
  • State: Open for Edit


this page contains information about the renewable energy programmes

Solar Lantern Programme


  • To reduce the consumption of kerosene for lighting purposes by replacing the kerosene lanterns and wick lamps by Solar Lantern.
  • To improve the quality of life in rural areas through the use of environment friendly solar lighting systems, which do not need any fossil fuels, do not emit any pollutants and are free from health and fire hazards; and
  • To provide an alternative for meeting small lighting requirements

Programme Implementing Organizations

The Solar lantern programme is implemented only through the state nodal agencies/Departments (SNAs) and the Akshaya Urja shops. Shops opened / managed by manufacturers or their associations will not be eligible under the scheme. The SNAs will not be allowed to allocate targets to the manufacturers to market the lanterns on their behalf. Further, the Ministry will not allocate targets for direct marketing by the manufacturers, their associations or NGOs etc.

Eligible Beneficiaries

  • All Categories of individual beneficiaries & non-profit institutions / organizations would be eligible to have solar lantern under the scheme in the un-electrified villages and hamlets of the special category states and UT islands.
  • Not more than one solar lantern would be provided to a family.
  • With a view to encourage education among girl child, one school going girl child per BPL family, studying in class IX to Class XII will be eligible to get one solar lantern free of cost. She will not be eligible to get another solar lantern during the entire period of her school study. The distribution of solar lanterns to such girl child will be organized by the concerned SNAs through the District Administration to ensure verification of BPL status and for obtaining the details of the school and class of the girl child. The beneficiaries would be required to show proof of identity such as ration card, voter identity card etc., to the implementing agency.
  • Solar Lanterns for SC / ST Beneficiaries : The programme implementing organizations should ensure that the Scheduled Caste and Scheduled Tribe beneficiaries are provided at least 15 % and 10 % of the total solar lanterns respectively out of the allocated targets.
  • Women's Component in the Solar Lantern Programme - While distributing solar lanterns preference should be given to girls hostels, adult education centres meant for women and DWACRA centres. Preference should also be extended to the families having a school going girl child.
  • The distribution of solar lanterns should be taken up in a cluster mode so that implementation, maintenance and after sale service and inspection of Solar Lanterns becomes easy.

Approved solar lantern models

Indigenous Solar Lanterns

Fully imported solar lanterns are not covered under the programme. Use of imported modules and / or batteries is however permitted. The imported modules may be used provided an independent test agency has certified their performance, conforming to the MNRE specifications of solar lanterns.

The Implementing organizations are required to procure only those solar lanterns which fully conform to the MNRE specifications.

Biogas based power generation programme

The programme was started by Ministry of New and Renewable Energy from 2005-06 (4th January 2006) with a view to promote biogas based power generation, especially in the small capacity range (3 kW to 250 kW), based on the availability of large quantity of animal wastes and wastes from forestry, rural based industries (agro / food processing), kitchen wastes, etc.

Eligibility criteria

The programme would be implemented through nodal departments / agencies of the States / UTs, KVIC, institutions and NGOs. The projects to be taken up by any village level organization, institution, private entrepreneurs etc in rural areas as well as areas covered under the Remote Village Electrification (RVE) programme other than the industries and commercial establishments covered under Urban, Industrial & Commercial Applications (UICA) programmes for sale of electricity to individual / community / grid etc. on mutually agreeable terms. Installation of projects will be encouraged only if specific responsibility is taken upright from the initiation of project by the institution including for operation and maintenance for the specified period as per DPR norms or otherwise for a minimum period of ten years. The proposals have to be submitted in the prescribed format to the concerned State Nodal agencies who in turn would forward to the Ministry with their recommendations for seeking Central Financial Assistance (CFA) under the scheme.

Components of a Biogas Based Power Generation System

  • Biogas Plants - Standard KVIC floating drum model (vertical or horizontal type) would be supported.
  • Gas Cleaning System
  • Engine with alternator
  • Control Panel
  • Machine Room / Shed
  • Manure management system / protocol

Central Financial Assistance (CFA)

Power generating capacityBiogas plant capacityRequirement of DPRCFA / subsidy limited to the following ceiling or 40% of the cost of the system whichever is less.
3-20kW 25 M3 to 85 M3 No DPR required Rs. 40,000 per kW
>20kW up to 100kW Any combination of above plants or approved alternate capacity / design DPR required Rs. 35,000 per kW
>100kW up to 250 kW Any combination of above plants or approved alternate capacity / design DPR required Rs. 30,000 per kW

For more information, click here.

Akshay Urja Shops

The Ministry of New and Renewable Energy, Government of India has been promoting the establishment of Aditya Solar Shops in major cities. These shops are now called as “Akshay Urja Shops” with a view to cover sales and service of all renewable energy devices and systems including solar energy products. The shops carry out the following functions:-

  • Sale of different renewable energy and energy efficient devices
  • Repair and servicing of renewable energy devices
  • Dissemination of information on renewable energy devices/ systems and
  • Facilitate individuals/companies to go in for renewable energy devices.

Eligible Organizations for financial assistance

State Nodal agencies, Private entrepreneurs and NGOs can set up and operate such shops in all districts of the country.

Financial Assistance

  • Applicants are eligible to avail loans to a maximum of 85% of the cost of establishment subject to a maximum of Rs.10 lakhs from public sector banks and scheduled co-operative banks for establishment of the shops at an interest rate of 7%. It is repayable over a period of five years.
  • Recurring grant/incentive through State Nodal Agencies (Subject to some minimum turnover) Rs.5000/- p.m as recurring grant towards manpower, electricity, telephone bills and other miscellaneous expenses.
  • Rs. 5000/- p.m as incentive towards turnover made, subject to a minimum turnover of Rs. 50,000/- p.m during the first year and Rs. 1,00,000/- p.m during the second year of operation. (the shops will not be eligible for any incentive for a particular month if the turnover is below the minimum amount) . (Eligibility for recurring grant or incentive will be worked out on the basis of the turnover for each six month period. If the six-monthly turnover falls below Rs.1.5 lakh during the first year or Rs.3.0 lakh during the second year, the shops will not be eligible for any grant or incentive. The payments towards grant and incentive will be released by the State Nodal Agencies on reimbursement basis after every six months. These will be available in the new shops for a period of 2 years after their establishment).
  • The scheme will be operated through State Nodal Agencies and IREDA.

Guidelines for setting up of the Shops

  • Only one shop is to be established in each district. Districts already having the shops established earlier are not entitled for more shops.
  • The shop will have a minimum covered area of 200 sq.ft. (excluding storage). It will either be constructed / purchased/ renovated. Shops on rent will not be eligible for Govt. support.
  • The shop shall be located in the prime and easily accessible part of the city.
  • It will have a common name all over the country. The name with ‘Akshay Urja Shop’ will be displayed on a glow sign board of at least 8’x3’ size. The name of the shop may start with a different word , say, the name of the owner and may be called as “……Akshay Urja Shop”
  • The shop will have decent aesthetics and will be well illuminated to attract the customers.
  • The shop will have a minimum of two employees. At least one of them should be a technical person having knowledge of repair and maintenance of renewable energy devices The Ministry of New and Renewable Energy will assume no liability towards the staff deployed in the shops.
  • The shop shall function on normal business lines and is expected to earn revenues from their operation.
  • The shop shall provide repair & servicing facility not only for the products being sold by the shop but also for other renewable energy products/devices installed/procured from any other source at reasonable price.
  • The shop shall operate as a customer-friendly outlet. Rigid or inconvenient timings and indifferent service should be avoided. The shop will display different models of renewable energy devices/systems from various manufacturers so that the customer can procure the items of his choice.
  • The price list of the items to be sold in the solar shop will be properly displayed / made available to the public. The shop will also disseminate information on these devices/systems to the people visiting them.
  • To make the solar shops a commercially viable entity, the shop may sell energy- efficient items, such as compact fluorescent lamps (CFL), lighting accessories, high efficiency kerosene stoves etc. in addition to the items related to renewable energy.
  • For benefit of the customers, the shop will establish a linkage with banks providing soft loans for various renewable energy products.

For a list of Akshay Urja Shops in the country, click here

Development of Solar Cities Programme

Ministry of New and Renewable Energy (MNRE) had launched a program on “Development of Solar Cities”. The programme has been modified /revised vide no. 5/4/2013-14/SC dated 17th January 2014 for implementation during the 12th Five Year Plan. The Solar City aims at minimum 10% reduction in projected demand of conventional energy at the end of five years, which can be achieved through a combination of energy efficiency measures and enhancing supply from renewable energy sources in the City.

A total of 60 cities/towns are proposed to be supported for development as “Solar/ Green Cities”. At least one city in each State to a maximum of seven cities in a State may be supported by the Ministry. The cities should have population between 5 to 50 lakh. Relaxation could be considered for special category states including North-Eastern States.

Goals and Objectives

The Goal of the program is to promote the use of Renewable Energy in Urban Areas by providing support to the Municipal Corporations for preparation and implementation of a Road Map to develop their cities as Solar Cities.

The objectives of the programme are given below:

  • to enable/empower Urban Local Governments to address energy challenges at City - level.
  • to provide a framework and support to prepare a Master Plan including assessment of current energy situation, future demand and action plans
  • to build capacity in the Urban Local Bodies and create awareness among all sections of civil society.
  • to involve various stakeholders in the planning process
  • to oversee the implementation of sustainable energy options through public - private partnerships.

Physical Targets

The target of total 60 cities/towns/Unban Agglomerations (Class I – III) duly notified by the Municipal Authorities/Local Governments with at least one in each State (including 45 Solar Cities already sanctioned i.e. 15 Nos. additional Solar Cities) has been set for the 2013-14 and rest of the 12th Five Year Plan period. The targets will be achieved by providing support for preparation of a Master Plan for their city; setting up of a ‘Solar City Cell’ in the Council/Administration, organizing training programmes/ workshops/ business meets for various stakeholders such as elected representatives of the municipal bodies, municipal officials, architects/engineers, builders and developers, financial institutions, NGOs, technical institutions, manufactures and suppliers, RWAs etc. and on creation of public information and awareness.

The total 15 Cities (including 10 Pilot Solar Cities already sanctioned i.e. 5 Nos. additional Pilot Solar Cities) within the above target are proposed to be developed as ‘Pilot Solar Cities’.

Out of above target of 60 cities, total eight cities (including 4 Model Solar Cities already sanctioned i.e. 4 Nos. additional Model Solar Cities) are also proposed to be developed as ‘Model Solar Cities’ with part financial support for installation of renewable energy and energy conservation projects/devices/systems in the city.

Apart from 60 Solar cities, about 100 small townships/campuses including new and the existing one, duly notified/permitted by the concerned Authorities being developed by the promoters/builders, SEZs/ industrial towns, Institutional campus etc. for preparation of Master Plan/DPR including the action plan for renewable energy installations, green campus development, awareness generation and trainings etc. will be covered.

Implementation Arrangements

The programme will be implemented through State Nodal Agencies/Urban Local Bodies or other corporate houses for respective cities. For townships and Institutional Campuses the respective organizations may also be involved. The detailed Guidelines for implementation of the scheme and financial provisions for various activities are given in the Annexure enclosed

Financial Provisions

The Central Financial Assistance (CFA) will be provided as follows:

CFA for preparation of Master Plans along with the Action Plans, setting up of Solar City Cell and it’s functioning, other promotional activities and oversight of implementation etc.

Up to Rs. 50.00 lakh per city/town depending upon population and initiatives to be taken by the City Council/ Administration/Municipal Corporation, break-up of which is given below:

  • Up to Rs. 10.00 lakh is for preparation of a Master Plan along with few implementable Detailed Project Reports within a year.
  • Up to Rs. 10.00 lakh is for oversight of implementation during three years.
  • Up to Rs. 10.00 lakh is for setting up of Solar City Cell and its functioning for a period of three years.
  • Remaining amount of Rs. 20 lakh is to be utilized in three years for other promotional activities, trainings, workshops, study tours and augmenting the activities of Solar City Cell.

The above provisions are applicable for all 60 Solar Cities including Pilot Solar Cities and Model Solar Cities irrespective of financial provisions made separately for these, elsewhere. The small towns/tourist places/religious/important places of mass gathering should also be covered for the RE installations in these Solar Cities. In case the above funds are not utilized completely, the remaining funds may be considered to be utilized towards RE projects installations including few innovative projects.

Criteria for selection of cities

The program encourages cities with high level of commitment and leadership quality. MNRE willconsider the following while selection of cities:

  • City Population, regional setting and prominence in region.
  • Political and administrative commitment towards adoption of sustainable energies (Resolution to be passed by the City Council/Administration for implementing all the activities specified in the ‘Solar cities’ programme).
  • Regulatory measures taken on adoption of energy conservation and renewable energy.
  • Potential for adoption of energy conservation and renewable energy in the city activities.
  • Initiatives already taken by City Council/Administration/ Private Developers/ Industry/General Public in promoting energy conservation and renewable energy.
  • Urban Local Bodies’ previous experience in involving public participation and working with all stakeholders.
  • Willingness and commitment to provide resources, financial share and sustenance of activities initiated under the program.

Source: MNRE

Implementation of Unnat Chulha Abhiyan (UCA) Programme during the year 2013-2014 and balance period of the 12th 5 year Plan


  • To develop and deploy improved biomass cook-stoves for providing cleaner cooking energy solutions in rural, semi-urban and urban areas using biomass as fuel for cooking.
  • To mitigate drudgery of women and children using traditional chulha for cooking.
  • To mitigate climate change by reducing the black carbon and other emissions resulting from burning biomass for cooking.


  • To support R&D activities on development of efficient and cost effective designs of biomass cook-stoves with reduced emissions.
  • To provide support for Test Centres for carrying out performance testing of biomass cook-stoves as per BIS.
  • Development of revised test protocols and standards.
  • To take up a series of projects using existing commercially available and better chulhas and different grades of process biomass fuel with ultimate aim exploring a range of technologies deployment biomass processing and delivery models leveraging public-private partnerships.
  • To support awareness and marketing campaigns and creating enabling environment
  • for mass production of processed biomass fuel, network of dealers, entrepreneurs training and supply chain mechanism.
  • Supporting training to manpower facilitating operation and maintenance networks at local level thus generating opportunities for employment.
  • Taking up dissemination programme on family type and large size Unnat Chulhas / cook-stoves for cooking applications.
  • Awareness for use of biomass cookstove in target groups.
  • The field and market experience of the above projects will be analyzed for developing a business model for commercialization including availing CDM benefit for biomass cookstove. The possibility of establishing a Section 25 company will be explored for carrying out the business of promotion of Unnat Chulhas in the country in future(possibly during 12th Five Year Plan).

Target Users

  • Kitchens of Mid-day Meal (MDM) scheme, Aangwadis, Forest Rest Houses, Tribal Hostels and small business establishments (road side dhabas, small hotels and restaurants and a variety of cottage industries like textile dyeing, drying of spices etc.) to be supplied with improved biomass cook-stovesunnat chulhas complying with improved standards.
  • Individual households in rural areas who use biomass for cooking purposes.

Implementation Arrangements

The programme will be implemented through R&D/academic institutions, State  Nodal/Implementing Agencies, State Departments of Education through District Coordinators of  Mid Day Meal Scheme, District Level Officer of Anganwadis, District Coordinators/Officers of  Tribal/SC/Backward Class Hostels and similar departmental agencies where cook-stoves could be  employed, NGOs/CSOs, manufacturers, business development organizations, etc. engaged in  implementation of renewable energy projects at grassroot level.

Release of Funds

The funds for the demonstration of biomass cookstoves will be released directly to the implementing organizations which will be the State Nodal Agencies, NGOs, SHGs, concerned State Government Agencies dealing with NRLM of Ministry of Rural Development, industries, companies, project developers etc., who will pass on the benefit to the beneficiaries’. Effectively, the implementing agencies will charge the total cost minus the MNRE subsidy/support from the beneficiaries, excluding in the case of NRLM. The following fund flow mechanism will be followed for projects;

  • In the case of implementing agencies from the state governments, SNAs, etc. 40% of the cost of the project with technical assistance and overhead charges will be released with the sanction letter of the project.
  • For private organizations, such as industry, NGOs, SHGs, etc. the 30% of the cost of the project will be provided with the sanction letter subject to the condition that the organization will furnish bank guarantee.
  • On successful dissemination and use of cookstoves/chulhas by beneficiaries, the implementing agencies will be required to get the beneficiaries including the details of identity verified by the Gram Pradhan/Gram Panchayat followed by endorsement by the concerned State Nodal Agency. The details of beneficiaries including the cost shared by them will be maintained by the implementing agencies in the format as given in Annexure-B
  • The balance funds in both the cases will be released after successful field performance monitoring and evaluation done by third party and followed by submitting the final completion report of the project with utilization certificate and audited statement of expenditure incurred as per the sanction of the project.
  • In the case of the approach to be adopted for Community Investment Support Fund for Unnat Chulha Abhiyan (CISF-UCA), the funds will be released to the concerned state government agencies in-line with the policy framework being followed by Ministry of Rural Development in their State Rural Livelihood Mission (SRLM) and National Rural Livelihood Mission (NRLM). The funds will be released on receipt of the work-plan/proposals from the concerned State Government Agency dealing with the NRLM of Ministry of Rural Development..
  • In all cases, the list with details of beneficiaries will be hosted in the websites of the implementing agencies linked with the website of the concerned SNA and the report submitted to MNRE.
  • In the case of R&D and test centres projects the funds will be released as per the R&D policy dated 18th October, 2010.
  • Funds for publicity and field performance monitoring activities will be released directly to the implementing agencies following the method given above.
  • Success fee to the implementing orgainsation will be released at the end of the year.

Source: MNRE

Programme on Energy from Urban, Industrial and Agricultural Wastes /Residues during 12th 5 year Plan period


  • The main objectives of the Programme are as follows:
  • To promote setting up of projects for recovery of energy from urban, industrial and agricultural wastes; and
  • To create conducive conditions and environment, with fiscal and financial regime, to develop, demonstrate and disseminate utilization of wastes and residues for recovery of energy.


  • The scheme provides for Central Financial Assistance in the form of capital subsidy and Grants-in-Aid in respect of the following activities :
  • Setting up of five pilot projects based on Municipal Solid Waste.
  • Biogas production from Industrial waste.
  • Power generation or production of bio-CNG from biogas produced from sewage and industrial wastes or from Urban and Agricultural wastes through biomethanation.
  • Power generation from solid industrial waste.

Promotional activities .

  • R&D, Resources assessment, technology upgradation and performance evaluation, etc.
  • Installation of biomass co-generation projects (excluding bagasse co-generation) in industry for meeting the requirement of captive power and thermal energy with at least 50% of power
  • for captive use, and an option for the surplus power to be exported to the grid.

Eligibility of projects for Central Financial Assistance Criteria based on type of wastes

  • The eligibility criteria for type of waste are as follows:
  • Projects based on any bio-waste from urban, agricultural, industrial/agro –industrial sector (excluding bagasse).
  • Projects for co-generation /power generation and production of bio-CNG from biogas.
  • Mixing of other wastes of renewable nature, including rice husk, bagasse, sewage, cow-dung, other biomass and industrial effluents (excluding distillery effluents) will be permissible.
  • Biogas generation projects based on distillery effluents and projects based on wastes from fossil
  • fuels and waste heat (flue gases) shall not be supported.
  • Municipal Solid Waste based projects selected through transparent competitive procedure would only be eligible for central financial assistance.
  • In MSW to Power projects, any waste of renewable nature or biomass can be mixed to the extent of 25 % based on gross Calorific Value. Use of a maximum of 25 % conventional fuels would be allowed in Biomass Co-generation (Non-Bagasse) projects based on agricultural wastes and residues other than bagasse.

For Central Finance Assistance please click here

Scheme on Energy Efficient Solar/ Green Buildings for implementation during the 12th Five year Plan period


The main objective of the scheme is to promote the widespread construction of energy efficient solar/green buildings in the country through a combination of financial and promotional incenti

ves, and other support measures so as to save a substantial amount of electricity and other fossil fuels apart from having peak load shavings incities and towns.

The objective will be achieved by providing promotional incentives for the construction of

Green buildings for creating awareness by organizing workshops, seminars and trainings for engineers, planners, builders, architects, consultants, housing financing organizations and potential users and besides, for development of technical literature, compilation and publishing of  documents related to solar/ green buildings and installation of renewable energy projects /systems in the green buildings.

Budgetary Allocation

The total budget of Rs. 10.00 crore has been allocated for implementation of the scheme during the year 2013-14 and rest of the 12th Plan period. This also includes meeting the pending liabilities.

Implementation Arrangement

The scheme will be implemented through State Nodal Agencies/ Municipal Corporations/ Govt. Bodies /reputed NGOs, technical institutions, professionals consultants etc.

For more details click here

Solar Pumping Programme for Irrigation and Drinking Water

Key Objectives are as follows

  1. Development of models that will foster solar power deployment for pumping in rural areas in a scalable manner.
  2. Exploring prospects of solar pump programs to address and support rural development-related aspects, over and above the basic service of water.
  3. Improvement in energy access.
  4. Duration: The duration of the programme will be five years starting from 2014-15.
  5. Targets: It is proposed to sanction one lakh pumps for 2014-15 and it is expected that by the year 2020-2021, at least ten lakhs (1 Million) solar pumps will be deployed for irrigation and drinking water purpose in the country.

Types of Solar Pumping Systems and Applications

A solar pumping system consists of an array of Photovoltaic (PV) panels mounted on a fixed or tracking mounting structure, connected to an Alternating Current (AC) or a Direct Current (DC) motor, suction and delivery pipes and electrical switchgears. A DC pump could be driven by a brushed or brushless permanent magnet DC motor. In case of an AC motor, an inverter or a Variable Frequency Drive (VFD) is used to convert DC power from the solar array to AC power required by the pump.

Grid Connected Pumping

In many places, solar pumps can be installed where pump is being driven by electricity grid. Irrigation needs are intermittent, between 200 to 250 days in a year, leaving most of the days with additional power available. In collaboration with electricity authorities and local utilities, it could be encouraged to connect solar pumps to feed surplus power back in the grid.

Solar Pump Mini Grid

There is current trend in rural electricity grid to separate irrigation pumping from rural residential homes. A dedicated transformer is connected to a cluster of irrigation pumps supplying power for fixed number of hours. This has created an opportunity to introduce high efficiency electric pumps coupled to a transformer based solar PV plants. Each transformer could have PV plant ranging from 25 KWp to 500 KWp jointly in a people, public and private ownership. The PV plant will feed power to the cluster of pumps. In case surplus power is available, PV plant will feedback power to the grid. Pumps could act as reliable anchor loads in case of off-grid mini grids.

Diesel Pumps

In many areas that are not grid connected or if the power supply is not reliable, farmers are incurring high cost for diesel pump and recurring costs for diesel, making small and marginal farming economically unviable. Additionally, most of these diesel pumps are highly inefficient. A programme that replaces diesel pumps with solar PV pumps would also help in reducing pollution besides immensely benefiting the farmer.

Community Solar Pumps or Water as a Service

In some states, farmers with electricity/diesel connection also sell or barter water with neighbouring farmers who do not have a pumping system. In these situations, either solar pump (along with panels) needs to be portable or water as a service needs to be encouraged. The pumps would thus be owned by large farmers or community and the service of providing water to other farmers shall be provided. This could help to develop local enterprises increasing local employment opportunities.

Micro Solar Pumps

In some cases, farmers grow vegetables on a very small size plot largely using manual irrigation methods like swing bucket, hand pumps or treadle pumps. A small micro solar pump with less than 75 Wp to 500 Wp with 0.1 HP to 0.5 HP pump of power needed could do a similar function as a manually operated pump. Most of these farmers have no access to electricity. There are applications of micro solar pumps even in rural schools, health centres and drinking water.

Implementation of the Programme

State Nodal agency will implement the programme in the state and carry out work of solar pumping in the long run with dedicated and trained team. It would be advantageous if the State Nodal Agency has field presence.

Source : MNRE

Related resources

Post Your Suggestion

(If you have any comments / suggestions on the above content, please post them here)

Enter the word
Back to top