Schemes

Off-Grid and Decentralised Solar PV Applications Programme

Under Phase-III of the Programme, it is targeted to create 118 MWp equivalent solar power capacity by 31.03.2020 through off grid solar PV applications.

Objectives:

• To promote off-grid applications of Solar photovoltaic (SPV) systems for meeting lighting, electricity requirements of individuals, institutions, communities, commercial and industrial establishments.
• To create awareness and demonstrate effective and innovative use of Solar systems for individual/ community/ institutional/ industrial applications.
• To encourage innovation in addressing market needs and promoting sustainable business models.
• To provide support to channel partners and potential beneficiaries, within the framework of boundary conditions and in a flexible demand driven mode.
• To create a paradigm shift needed for commoditization of off-grid decentralized solar applications.
• To support consultancy services, seminars, symposia, capacity building, awareness campaigns, human resource development, etc.
• To encourage replacement of kerosene, diesel, electricity and other fuels wherever possible.

Scope of the Scheme

The programme covers the following components.

• Solar Street Lights: 3,00,000 numbers of solar street lights will be installed throughout the country with special emphasis on areas where there is no facility for street lighting systems through grid power, North Eastern States and Left Wing Extremism (LWE) affected districts.
• Stand-alone Solar Power Plants: Solar power plants of individual size up to 25 kWp(kilo Watt peak) will be promoted in areas where grid power has not reached or is not reliable. This component is mainly aimed at providing electricity to schools, hostels, panchayats, police stations and other public service institutions. The aggregated capacity of solar power plants would be 100 MWp.
• Solar Study Lamps: 25,00,000 numbers of solar study lamps will be provided in North Eastern States and LWE affected districts.

Implementation Arrangements:

Programme will be implemented throughState Nodal Agencies (SNAs), which will be the designated Implementation Agency under the scheme. Public sector undertakings can be implementation agencies for remote/hilly or border areas for the Solar power plants on the request of State Agencies.

Funding Pattern:

For solar street lights and solar power plants, financial support up to 30% of the benchmark cost of the system will be provided except for NE States, Hill States and Island UTs where up to 90% of the benchmark cost will be provided. For solar study lamps only 15% of the lamp cost to be borne by beneficiary student and balance will be provided as financial support as such systems will be provided to school going children in backward and remote areas.

To access the complete guidelines, Click here.

Solar Energy Scheme for Small Powerloom Units

Government has approved a new scheme to provide financial assistance/capital subsidy to small powerloom units, for installation of Solar Photo Voltaic (SPV) plant, in order to alleviate the problem of power cut/ shortage faced by decentralized powerloom units in the country.

Under the Solar Energy Scheme, the plants have two options:

• On-Grid Solar Power Plant where power cut/shortage is negligible and power tariff is high
• Off-Grid Solar Power Plant in areas where there is power shortage & on-grid power is not continuously available.

Financial assistance/capital subsidy to be given under the scheme is as follows:

The Scheme will come into force with effect from 01.04.2017.

Source: PIB

IREDA NCEF refinance scheme (revised)

Objectives

The scheme aims to revive the operations of the existing Biomass Power & Small Hydro Power projects by bringing down the cost of funds for these projects by providing refinance at concessional rates of interest, with funds sourced from the National Clean Energy Fund (NCEF).

Scope

Period : The Scheme shall be in operation for a period of five( 5) years commencing from the financial year 2013-14.

Technology : Small Hydro Power (SHP) & Bio - mass combustion based g rid connected power generation projects.

Eligibility

Institutions eligible to avail refinance:

Scheduled commercial banks and financial institutions would be eligible for refinance from IREDA under this Scheme. Grant of refinance shall be at the sole discretion of IREDA who would also determine the availability and extent of refinance. They scheduled commercial banks / financial institutions shall be required to satisfy, Inter alia, the following parameters to be eligible for availing refinance under the Scheme:

1. They should be profit-making for the last three years and should have no accumulated losses.
2. Gross Non-Performing Assets as a percentage of Gross Advances should normally not exceed five per cent for the entire portfolio of the lending institution.
3. The Capital Adequacy Ratio should be in conformity with the prescribed regulatory norms.

Other eligibility conditions:

1. Operational grid connected power generation projects:
• Combustion based Biomass power projects (Upto installed capacity of 10 MW). In case of combustion based Biomass Power, the projects of more than 10 MW may also be considered, however, the refinance amount will be limited to the amount as per pro rata basis upto 10 MW only, subject to maximum refinance amount that can be availed as per scheme i.e. Rs. 15 Crores.
• Small Hydro power (upto installed capacity of 5 MW)
2. Projects viability affected, in view of tariff, abnormal fuel cost escalation issues & Force majeure conditions.
3. Project should be revived/operationalized after the utilization of NCEF refinance loan from IREDA.
4. Plants should have operational history of atleast 2 years after commissioning of the project and the 2 year’s average PLF (in case of plant operated for more than 2 years, then the average PLF of any 2 years) should be atleast 20% in case of Biomass Power and 15% in case of Small Hydro Power (SHP) Projects.
5. Refinance not exceeding 30% of the loan outstanding, @ 2% interest rate from IREDA to Scheduled commercial banks / FIs (including IREDA) and the same shall be extended by the Banks/FIs to the project developers at the same rate of 2%, subject to, maximum Refinance amount Rs. 15 Cr. per project.
6. The project should also have min. of average DSCR of 1.1 after taking into account IREDA refinance amount and should be able to service the loan.
7. The project should be revived / operationalized within 6 months from the date of disbursement, In case Bank / FI do not provide the confirmation on revival of the plant within 6 months, the refinance disbursed may be recalled, and the amount has to be refund ed to IREDA in one go

Rate of Interest:

The rate of interest on the refinance from IREDA to Banks/FIs shall be two per cent per annum. The scheduled commercial Banks/FIs are required to provide the refinanced component of loan to the b orrower at the same interest rate i.e. two per cent per annum.

Tenure of Refinance :

Refinance from IREDA shall be repayable within a period of ten years plus a moratorium of 6 months..

For more information, Click here

Scheme to Support Promotion of Grid Interactive Biomass Power and Bagasse Cogeneration

Biomass Power and Bagasse Co-generation Programme is being promoted by the Ministry during the year. The Programme aims at efficient utilization of biomass such as agro residue in the form of stalks, stems and straw; agro-industrial residues such as shells, husks, de-oiled cakes and wood from dedicated energy plantations for power generation. The potential for power generation from agricultural and agro-industrial residues is estimated at about 18,000 MW. With progressive higher steam temperature and pressure and efficient project configuration in new sugar mills and modernization of existing ones, the potential of surplus power generation through bagasse cogeneration in sugar mills is estimated at 7,000 MW. The potential for bagasse cogeneration lies mainly in sugar producing States, like Maharashtra and Uttar Pradesh. Thus, the total estimated biomass power potential is about 25,000 MW.

Objectives

• To promote efficient and economic use of surplus biomass for power generation.
• To maximize surplus power generation from sugar mills using improved technologies.
• To promote technologies of co-generation and biomass combustion for supplementing conventional power.
• To promote BOOT model projects for surplus power generation in cooperative sector sugar mills.

Eligibility criteria for admissible projects with respect to

Types of Biomass Resources

• For biomass power projects: Biomass will include Agro-based Industrial Residue, wood produced in Energy Plantations or recovered from wild bushes / weeds, wood waste produced in industrial operations; Crop / Agro Residues.
• For bagasse cogeneration projects: Bagasse during crushing season

Financing Institutions

All registered financial Institutions Development / investment corporations; all nationalized bank, private banks, Central & State Cooperative Banks, State/Public Sector Leasing and Financing corporations.

Promoters

Promoters includes individual / independent registered companies, Joint Sector / public sector companies / state agencies and private and public sector investors having technical and managerial capabilities for implementing Biomass Power / Bagasse cogeneration projects on BOOT / BOLT or IPP basis or State Govt. undertaking or Sate Govt. supported Joint Venture Company/SPV Company.

Central Financial Assistance (CFA)

The Central Financial Assistance for private sector projects viz IPP Grid interactive biomass combustion power projects and bagasse co-generation in private / Joint sector sugar mills, IPP based BOOT/BOLT model projects in cooperative / Public sector sugar mills will be released after successful commissioning, and commencement of commercial generation and testing of the project (Backended Central Financial Assistance), except in the case of bagasse co-generation projects in cooperative/public sector sugar mills implemented by State Government undertaking / State Government Joint Venture Company/SPV Company (Urja Ankur Trust) through BOOT/BOLT model and cogeneration projects by cooperative / public sector sugar mill themselves, wherein 50% of eligible upfront Central Financial Assistance will be provided and the balance 50% will be released after successful commissioning and performance testing of the project.

Quality of Project

Quality of project and the equipment utilised therein is considered important for reliability and long-term operations. Project developers would be required to follow various international standards or national standards for equipments utilized in a project.

For more information click here

Central Financial Assistance (CFA) provided under various renewable energy schemes / programmes

A. Grid Interactive renewable power programmes

1. Wind Power Projects : Generation Based Incentive (GBI) - Rs.0.50 per unit subject to max of Rs.1.00 crore/MW for producers.

2. Solar power projects

3. Small Hydro Power (SHP) Projects

Support to new SHP projects (producers) in State sector:

Support to new SHP projects (producers) in private / cooperative / joint sector:

4. Biomass Power and Bagasse Cogeneration Projects ( producers)

Private / Joint / Cooperative / Public Sector Sugar Mills

* Maximum support of Rs. 1.50 crore per project.

5. Waste to Energy Projects:

Central Financial Assistance to Producers

• Municipal Solid Waste - Rs.2.00cr./MW, Max. Support 10 Cr. /project.
• Urban Waste - Rs.2.00cr./MW, Max. Support 5 Cr. /project.
• Industrial waste Rs. 0.20cr to Rs. 1.00cr/MW, Max. Support Rs.5.00cr/project.

B. Off-grid / Decentralised renewable energy programmes

Biogas Programme (Phase-I)

The Ministry of New and Renewable Energy (MNRE), Government of India has notified the National Bioenergy Programme on November 2nd , 2022. MNRE has continued the National Bioenergy Programme for the period from FY 2021-22 to 2025-26. The Programme has been recommended for implementation in two Phases. The Phase-I of the Programme has been approved with a budget outlay of Rs. 858 crore which included Rs. 100 Crore for the Biogas Programme to support setting up of small (1 m3 to 25 m³ biogas per day) and medium size Biogas plants i.e. above 25 m³ to 2500 m³ biogas generation per day for corresponding power generation capacity range of 3 kW to 250 kW from biogas or raw biogas for thermal energy / cooling applications.

Objectives

• Setting up of biogas plants for clean cooking fuel, lighting, meeting thermal and small power needs of users which results in GHG reduction, improved sanitation, women empowerment and creation of rural employment.
• Organic enriched Bio-manure: The digested slurry from biogas plants, a rich source of manure, shall benefit farmers in supplementing / reducing of use of chemical fertilizers.

Eligibility Criteria

• Beneficiary should have their own land/ space about 50-60 Square meter area for installing small biogas plant ( 1 to 25 m3).
• Availability of cow dung/ feedstock’s & regular water supply.
• Financial capacity for investing their own share money for biogas.

Central Financial Assistance under the National Biogas Programme

Source: MNRE

Off-grid and Decentralized Solar Thermal Application Scheme (Capital subsidy scheme for installation of solar thermal systems)

Background:

The Government had launched the Jawaharlal Nehru National Solar Mission, which is a major initiative of the Government of India and State Governments to promote ecologically sustainable growth while addressing India's energy security challenge. It will also constitute a major contribution by India to the global effort to meet the challenges of climate change. Aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country both at a centralized and decentralized level.

The first phase (up to March 2013) having achieved the required target and momentum, Solar Thermal component of JNNSM in balance period (UPTO MARCH 2022) will now, inter alia, would require focus on promoting off-grid systems including hybrid systems to meet / supplement heating and cooling energy requirements and power. These systems still require interventions to bring down costs. The key challenge is to provide an enabling framework and support for entrepreneurs to develop markets. This scheme /programme will address off grid and decentralized solar thermal application area/systems

Objectives:

• To promote off-grid applications of solar Thermal systems( solar water/air heating system, solar cooker, solar concentrating system, solar thermal power pack as covered in para1 above) for meeting the targets set in the Jawaharlal Nehru National Solar Mission.
• To create awareness and demonstrate effective and innovative use of solar thermal systems for individual/ community/ institutional/ industrial applications.
• To encourage innovation in addressing market needs and promoting sustainable business models.
• To provide support to channel partners and potential beneficiaries, within the framework of boundary conditions and in a flexible demand driven mode.
• To create a paradigm shift needed for commoditization of off-grid decentralized solar thermal applications.
• To support consultancy services, seminars, symposia, capacity building, awareness campaigns, human resource development, etc.
• To encourage replacement of kerosene, diesel& wood wherever possible.

Solar thermal applications/systems areas to be covered in this scheme

The heat produced from solar energy can be used for various applications in different sectors like process heating, drying, distillation/desalination, water heating, space heating and refrigeration and power/electricity generation. Following systems may be considered for grant of capital ubsidy in this scheme

(i) Solar water heating :

• Flat Plate Collectors (FPC)
• Evacuated Tube Collectors (ETC)

(ii) Solar air heating

(iii) Solar steam generation/ pressurized hot water/air systems

(iv) Solar thermal refrigeration/cooling

(vi) Solar Thermal Power Pack (including hybrid with Solar PV)

(vii) Solar stills

Validity of the scheme:

The scheme will be valid till 31.3.2017 or such extended period as may be allowed by the government of India.

Mode of Implementation:

The programme would be implemented through multiple agencies for rapid up-scaling in an in clusive mode. These agencies would be State Nodal Agencies/Deptts. implementing the renewable energy programmes, Solar Energy Corporation of India, Channel Partners and other Govt. organizations i.e., PSUs/Institutions/State Departments/Local Governments/Municipal Corporations/NHB/NABARD/IREDA etc.

Financial Institutions/ Intermediaries:

These are entities which would integrate different sources of finance including carbon finance, government assistance loans and other sources of funds to design financial products/ instruments and make these available to their clients at an affordable cost. These entities would tie up with manufacturers and service providers for supply of products. This category will include NABARD, NHB, SEC/IREDA other financial institutions. MNRE may draw up a scheme and place subsidy funds with the institution which can then be disbursed along with loan to the beneficiaries. The advance to be given may depend on the expected volume of business.

Source: MNRE

Scheme for Off-Grid and Decentralized Solar Cooker Programme

Objectives:

To promote off-grid cooking applications like cooking/baking/frying using Solar Device (Box and Dish Type solar), thereby supporting the targets set in the Jawaharlal Nehru National Solar Mission

• To create awareness and demonstrate effective use of solar cooking systems for individual /community/beneficiary.
• To encourage innovation in addressing market needs and promoting sustainable business models.
• To provide support to channel partners and potential beneficiaries, within the framework of boundary conditions and in a flexible demand driven mode.
• To support consultancy services, seminars, symposia, capacity building, awareness campaigns, human resource development, etc.

Scope of the Scheme:

The programme would be applicable in all parts of India and would, to begin with, beco-terminus with the Jawaharlal Nehru National Solar Mission and will, inter-alia, focus on promoting off-grid and decentralized systems as defined. The targets will be implemented in the high potential and demand of the states. The off grid and decentralized cooking system of any size/ number would be eligible under the Programme. The programme may be implemented in Urban and Rural Area as well.

Mode of Implementation:

The programme may be implemented through Multiple Agencies. These agencies would be State Nodal Agencies/Depts. implementing the renewable energy programmes, Solar Energy Corporation of India, Channel Partners and other Govt. organizations i.e., PSUs/ Institutions/ State Departments/Local Governments/Municipal Corporations/NHB/NABARD/IREDA etc.

Funding Pattern:

Funding under this scheme would be operated on reimbursement basis only, in accordance with the benchmark cost and subsidy levels fixed by MNRE every year for implementation through channel partners. Advance upto 30% of CFA may be released to SNAs and other government organizations. The beneficiary/user need to pay only the cost net of subsidy, while the subsidy will be released to the respective implementing agencies. Implementing agency need to submit the relevant documents to the MNRE in the prescribed format for the disbursement of subsidy.

Eligible Subsidy:

• MNRE would provide financial support in accordance with the benchmark cost and subsidy levels, which will be fixed on yearly basis
• Capital subsidy of 30% of the benchmark cost would be available for general category states
• Capital subsidy 60% of the benchmark cost for special category states, viz. NE, Sikkim, J&K, Himachal Pradesh and Uttarakhand.
• In addition, it would also be extended for remote and difficult areas of Lakshadweep, Andaman & Nicobar Islands and districts on India’s International borders, with 60% subsidy.
• The funds would be released on reimbursement basis on completion and verification/inspection by SNA or third party thereof.

Release of Funds:

For setting up of the projects the release of funds for various Implementing Agencies would be as follows:

Source: MNRE