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<p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has issued a downward revision of benchmark costs excluding taxes for decentralized and off-grid solar systems for the financial year (FY) 2021-22.</p>
<p>In August this year, MNRE <a href="https://mercomindia.com/new-benchmark-costs-off-grid-solar-2022/" target="_blank" rel="noopener">issued</a> the benchmark costs for FY 2021-22. Subsequently, the Goods and Services Tax (GST) Council <a href="https://mercomindia.com/developers-worried-gst-hike-solar-modules/">revised</a> the GST for solar energy applications and projects. The revision necessitated the change in benchmark costs for decentralized solar applications.</p>
<p>MNRE has stated that the applicable GST rates may be added to the benchmark costs for the purpose of central financial assistance (CFA).</p>
<p>The revised benchmark costs will be applicable from August 18, 2021 (date of the original order of the benchmark costs for FY 2021-22). The amended benchmark costs include the total cost of the system and its installations, commissioning, transportation, insurance, warranty, monitoring, and maintenance for five years.</p>
<p>The revised benchmark cost for standalone solar pumps ranges from ₹96,877 (~$1,290) to ₹469,054 (~$6,246) for general category states. For the northeastern region, hill states, islands, and union territories (UTs), the benchmark costs hover around ₹105,509 (~$1,405) to ₹511,202 (~$6,807). Earlier, the benchmark cost for the general category states was in the range of ₹105,500 (~$1,418) to ₹510,800 (~$6,868), and for the northeastern region, hill states, islands, and  UTs, the benchmark cost was ₹114,900 (~$1,544) to ₹556,700 (~$7,485).</p>
<p>The table below shows the amended benchmark costs for standalone solar pumps in general category states, union territories, northeastern region, hilly states, and islands.</p>
<p><a href="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-1.png"><img decoding="async" loading="lazy" class="wp-image-30003 size-full aligncenter" src="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-1.png" alt="MNRE Final-1" width="420" height="383" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-1.png 420w, https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-1-300x274.png 300w" sizes="(max-width: 420px) 100vw, 420px" /></a></p>
<p>The amended benchmark cost for solarization of grid-connected agriculture pumps also applies to general category states, northeastern, hilly states, islands, and UTs. For solarization of grid-connected agricultural pumps, the benchmark cost is the range of ₹37,649 (~$501.38)/kW to ₹44,352 ($590.65)/kW for various categories. Earlier, it was in the range of ₹41 (~$0.55)/W to ₹48.3 (~$0.64)/W for various categories.</p>
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-4.png"><img decoding="async" loading="lazy" class="alignnone wp-image-30004 size-full" src="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-4.png" alt="MNRE Final 4" width="442" height="202" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-4.png 442w, https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-4-300x137.png 300w" sizes="(max-width: 442px) 100vw, 442px" /></a></p>
<p>The amended benchmark cost for solar study lamps for the FY 2021-22 is now ₹376 (~$5)/system. Also, the revised benchmark cost for solar lamps with lithium-ion batteries has been reduced to ₹13,039 (~$174)/system.  Earlier, the benchmark cost for solar study lamps was ₹395 (~$5.3)/system, and the benchmark for solar street lights with lithium-ion batteries was ₹14,200 (~$191)/system.</p>
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-2.png"><img decoding="async" loading="lazy" class="alignnone wp-image-30005 size-full" src="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-2.png" alt="MNRE Final 2" width="387" height="206" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-2.png 387w, https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-Final-2-300x160.png 300w" sizes="(max-width: 387px) 100vw, 387px" /></a></p>
<p>The revised benchmark cost for standalone solar power projects and battery packs is in the range of ₹50 (~$0.7)/W to ₹86 (~$1.1)/W for capacity up to 25 kW. Earlier, the benchmark cost ranged from ₹55 (~$0.73)/W to ₹94 (~$1.25)/W for various categories up to the maximum capacity of 25 kW.</p>
<p>The table below gives the amended benchmark costs for standalone solar power projects and packs for various categories:</p>
<p style="text-align: center;">
<p style="text-align: center;"><a href="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-2-updated.png"><img decoding="async" loading="lazy" class="alignnone wp-image-30021 size-full" src="https://mercomindia.com/wp-content/uploads/2021/10/MNRE-2-updated.png" alt="MNRE 2 updated" width="519" height="298" srcset="https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-2-updated.png 519w, https://cms.mercomindia.com/wp-content/uploads/2021/10/MNRE-2-updated-300x172.png 300w" sizes="(max-width: 519px) 100vw, 519px" /></a></p>
<p>Earlier this year, MNRE had <a href="https://mercomindia.com/mnre-benchmark-costs-rooftop-solar-fy-2022/" target="_blank" rel="noopener">issued</a> benchmark costs for grid-connected rooftop solar photovoltaic (PV) systems for FY 2021-22. These costs are applicable for all projects to be awarded and for empanelment of vendors by state implementing agencies under phase-II of the MNRE’s rooftop solar program after ten days from the notification, i.e., August 28, 2021.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.</p>
<div class="saboxplugin-wrap" itemtype="http://schema.org/Person" itemscope itemprop="author"><div class="saboxplugin-tab"><div class="saboxplugin-gravatar"></div><div class="saboxplugin-authorname"><a href="https://cms.mercomindia.com/author/rakesh-ranjan-parashar/" class="vcard author" rel="author"><span class="fn">Rakesh Ranjan</span></a></div><div class="saboxplugin-desc"><div itemprop="description"><div class="designboxt">
<p><img class="alignleft" style="border-radius: 50%;height: 50px;margin-top: -4px;border: 1px solid #00b451" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="50" /></p>
<p><strong style="text-decoration: underline">Rakesh Ranjan,</strong> Staff reporter at Mercom India<br />
<a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener">More articles from Rakesh Ranjan.</a></p>
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<p><img class="alignleft" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/02/Rakesh-Headshot-crop-2.jpg" width="77" height="102" /><a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" target="_blank" rel="noopener"><strong style="color: #00b451">Rakesh Ranjan</strong></a> is a staff reporter at Mercom India. Prior to joining Mercom, he worked in many roles as a business correspondent, assistant editor, senior content writer, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Communication, and Bangalore Bias. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). <a href="https://mercomindia.com/author/rakesh-ranjan-parashar/" rel="noopener noreferrer">More articles from Rakesh Ranjan.</a></p>
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MNRE Brings Down Benchmark Costs for Off-grid Solar Systems for FY 2021-22

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