Extension of Grid Connected Rooftop Solar Programme Phase-II: A Detailed Overview

The extension of Phase-II of the Grid Connected Rooftop Solar Programme is a significant step toward achieving India’s renewable energy goals. By providing financial incentives, streamlining procedures, and focusing on grid stability, the scheme aims to empower consumers and promote the widespread adoption of rooftop solar systems.

The Government of India has extended the implementation period for Phase-II of the Grid Connected Rooftop Solar Programme. This extension aims to further promote the adoption of rooftop solar systems and contribute to India’s renewable energy goals. This piece provides an overview of the scheme, its extension, and the key objectives it seeks to achieve.

Background of the Scheme

The Grid Connected Rooftop Solar Programme Phase-II was introduced to encourage the installation of rooftop solar systems. The operational guidelines for the scheme were issued on August 20, 2019. Based on feedback from stakeholders, amendments have been made to the operational guidelines over time.

Extension of Phase-II

The recent order from the Ministry of New and Renewable Energy (MNRE) announces the extension of Phase-II of the Rooftop Solar Programme until March 31, 2026. This extension is within the originally approved total outlay of ₹11,814 crore for both components A and B of the program.

Key Objectives of the Scheme

The Rooftop Solar Programme Phase-II aims to:

  • Promote the adoption of rooftop solar systems.

  • Reduce reliance on conventional energy sources.

  • Support the growth of the renewable energy sector.

  • Provide financial incentives to encourage participation.

Key Amendments and Provisions

The key amendments and provisions of the scheme include:

  • Extended Timeline: The scheme is extended until March 31, 2026, without any additional financial implications.

  • Utilization of Savings: Savings in the Central Financial Assistance (CFA) for the residential sector (component A) or incentives to DISCOMs (component B) will be utilized to support additional capacity in the residential sector.

  • Redundant Procedures Removed: Certain procedures in the scheme guidelines have been removed to streamline implementation.

  • Flexibility in Bundling: The mix for bundling is determined based on technical considerations, taking into account grid stability.

  • Focus on Clean Energy Transition: The scheme aims to accelerate the transition to clean energy and reduce carbon emissions.

Components of the Scheme

The scheme has two main components:

  1. Component A (Residential Sector): Provides Central Financial Assistance (CFA) to residential consumers for installing rooftop solar systems.

  2. Component B (DISCOMs): Provides incentives to Distribution Companies (DISCOMs) for achieving prescribed capacity targets.

Implementation and Monitoring

  • The scheme is implemented by the Ministry of New and Renewable Energy (MNRE).

  • State Implementing Agencies are responsible for overseeing the implementation at the state level.

  • The progress of the scheme is monitored by the Ministry and other relevant agencies.

Financial Aspects

  • The scheme operates within the existing budget of ₹11,814 crore.

  • Savings in the CFA for the residential sector or incentives to DISCOMs will be used to support additional capacity in the residential sector.

  • Funds are released based on the progress and achievement of targets.

The Scheme’s Impact

The extension of Phase-II of the Grid Connected Rooftop Solar Programme is expected to:

  • Accelerate the adoption of rooftop solar systems across the country.

  • Reduce the burden on the power grid.

  • Promote a more sustainable and environmentally friendly energy system.

  • Contribute to India’s renewable energy targets.

Conclusion

The extension of Phase-II of the Grid Connected Rooftop Solar Programme is a significant step toward achieving India’s renewable energy goals. By providing financial incentives, streamlining procedures, and focusing on grid stability, the scheme aims to empower consumers and promote the widespread adoption of rooftop solar systems. This initiative is a testament to the government’s commitment to a cleaner and more sustainable energy future.

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