Lok Sabha Question No. 2849 (UNSTARRED), answered on 2021-08-05
Subject: Subsidy for Consumption of Solar Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Sanganna Amarappa Karadi

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-2849

ANSWERED ON-05/08/2021

## SUBSIDY FOR CONSUMPTION OF SOLAR ENERGY

2849. SHRI SANGANNA AMARAPPA

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) the details of schemes being implemented by the Government in Karnataka to encourage solar energy at present;
- (b) the quantum of funds released during the last two years under the said schemes;
- (c) whether the Government has made provision of any subsidy for consumption of solar energy;
- (d) if so, the details thereof; and
- (e)  whether the Government proposes to set up a new solar energy plant in KalyanaKarnataka and if so, the details thereof?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a)to(d)  The  Ministry  of  New  and  Renewable  Energy  (MNRE)  is  implementing  various schemes and programmes to promote solar energy in the country, including in the State of Karnataka. These include Solar Parks scheme, PM-KUSUM scheme, CPSU scheme, Rooftop Solar  Programme  and  Green  Energy  Corridor  scheme,  etc.  The  details  of  these  Schemes, along with subsidy available under them, are given in Annexure. Under the said schemes, funds amounting to Rs. 104 Crore have been released by MNRE to the State of Karnataka during the last two years (2019-21).

- (e) Under Solar Parks Scheme, MNRE has sanctioned a 500 MW solar park at Kalaburgi in the Kalyana-Karnataka region.

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## Annexure-I referred to in reply to part (a) to (d) of Lok Sabha Unstarred Question No.2849 for 05/08/2021 regarding ' Subsidy for Consumption of Solar Energy '

## Support being provided by the Government for promotion of solar energy

| Schemes/ Programme                                                                                                         | Details of support being provided                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a) Grid Connected Rooftop Solar PV Power Projects                                                                          | (i) For Residential Sector  Central Financial Assistance (CFA) up to 40% for capacity up to 3 kWp  CFA up to 20% for capacity beyond 3 kWp and up to 10 kWp  CFA up to 20% for GHS/RWA capacity up to 500 kWp (limited to 10 kWp per house and total upto 500 kWp) (ii) For Discoms Incentives up to 10% of project cost depending upon achievements in capacity addition above baseline.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| b) Grid connected Solar PV Power Projects by Government producers under CPSU scheme Phase II (Government Producers Scheme) | VGF support up to Rs 55 lakhs per MW to the CPSUs/ State Govt. PSUs/ Govt. Organizations entities selected through competitive bidding process.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| c) Solar Park Scheme                                                                                                       | Upto 25 lakh per Solar park for preparation of Detailed Project Report (DPRs). 20 Lakh perMW or 30% of the project cost including Grid-connectivity cost, whichever is lower.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| d) PM-KUSUM scheme                                                                                                         | Under Component A, solar power plants of capacity 500 KW to 2 MW are setup by individual farmers/ cooperatives/panchayats /farmer producer organisations (FPO) on their barren or cultivable lands. The power generated will be purchased by the DISCOMs at Tariffs determined by respective SERC. Performance Based Incentives @ Rs. 0.40 per unit for five years will be provided to DISCOMs. Under Component B, individual farmers are supported to install standalone solar pumps of capacity up to 7.5 HP. Under Component C of the scheme, financial support is provided for solarisation of existing grid connected agricultural pumps of capacity up to 7.5 HP. For both Component-B and Component-C, Central Financial Assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, is provided. The State Government provides a subsidy of 30%; and the remaining 40% is provided by the farmer. Bank finance may be made available for meeting 30% of the cost. Higher CFA of 50% is provided for North Eastern States, Sikkim, Himachal Pradesh, Uttarakhand and UTs of Jammu &Kashmir, Ladakh, Lakshadweep and A&N Islands |
| e) Green Energy Corridor Scheme                                                                                            | CFA of 40 %of DPR cost or awarded cost whichever is lower is provided for creation of intra-state transmission infrastructure for evacuation of RE power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |