MNRE Hikes Central Assistance for Residential Rooftop Solar in Northeastern States

For future bids, the CFA under the national portal for rooftop solar would be applicable

January 30, 2023


The Ministry of New and Renewable Energy (MNRE) has increased the Central Financial Assistance (CFA) for residential rooftop solar consumers of northeastern states, along with hilly states of Uttarakhand, Himachal Pradesh, and the union territories of Jammu and Kashmir, Ladakh, Lakshadweep, and Andaman & Nicobar Islands.

Residential rooftop solar consumers will receive ₹17,662 (~$216.7)/kW as CFA for the first 3 kW. For rooftop capacity beyond 3 kW and up to 10 kW, they will receive CFA of ₹8,831 (~$108.3)/kW.

For residential welfare associations or group housing societies, a CFA of ₹8,831 (~$108.3)/kW for common facilities up to 500 kW at 10 kW per house will apply.

The ministry had received requests from stakeholders for higher CFA in line with the higher benchmark costs prescribed for northeastern states, hilly states, and union territories.

Earlier, for individual households, the CFA was ₹14,588 (~$178.9) for capacity up to 3 kW, and for capacity in the range of 3 kW to 10 kW, the CFA was ₹7,294 (~$89.5)/kW.

It was applicable for the entire country. The CFA for residential welfare associations and group housing societies was ₹7,294 (~$89.5)/kW for common facilities up to 500 kW at 10 kW per house.

The ministry noted that it had also received queries regarding the ambiguity in the two modes being implemented for rooftop solar projects.

The queries related to the rates discovered and vendors empanelled by the distribution companies (DISCOMs) through the tendering process and vendors empanelled through the national portal for rooftop solar. These two modes were creating confusion amongst consumers mainly due to the difference in CFA rates.

After considering both modes and to avoid ambiguity, the ministry decided that a uniform CFA would be applicable for both implementation modes. Therefore, for all future bids and the bids which are scheduled to be closed after 15 days of the issuance of this notification by the DISCOMs for the installation of rooftop solar systems in the residential sector under Rooftop Solar Programme Phase-II, the CFA under the national portal for rooftop solar would be applicable.

Last October, MNRE extended Phase II of the ‘Grid-Connected Rooftop Solar Program’ until March 31, 2026. The program has been extended without any addition to the initially approved outlay of ₹118.14 billion (~$1.66 billion) for both the residential segment (Component A) and distribution companies (Component B).

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