Lok Sabha Question No. 1795 (UNSTARRED), answered on 2025-07-30
Subject: Schemes to Promote Solar Energy
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Jugal Kishore, Shri Nalin Soren

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 1795

ANSWERED ON 30/07/2025

## SCHEMES TO PROMOTE SOLAR ENERGY

1795. SHRI NALIN SOREN SHRI JUGAL KISHORE

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

- (a) the schemes being implemented by the Government to promote solar energy in Dumka district of Jharkhand and Union Territory of Jammu and Kashmir;
- (b) the details of funds sanctioned under these schemes during the last two years;
- (c) whether the Government has made provision for subsidy for the consumption of solar energy; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI SHRIPAD YESSO NAIK)

- (a) & (b) The Government is implementing various schemes to promote solar energy in the country including Dumka district of Jharkhand and Jammu and Kashmir, the details of which are provided at Annexure-I

The  details  of  funds  sanctioned  under  the  schemes  during  last  two  years  are  given  at Annexure-II.

- (c) & (d) The Government provides subsidy through various schemes to promote setting up of solar energy projects in the country. The details of subsidy/incentives are given at AnnexureIII.

*****

## ANNEXURE-I REFFERED TO IN REPLY TO PART (a) & (b) OF LOK SABHA UNSTARRED QUESTION NO. 1795 FOR 30.07.2025

## List of Operational Schemes to Promote Solar Energy

1. PM Surya Ghar Muft Bijli Yojana (PMSG: MBY): The Ministry of New & Renewable Energy  is  implementing  this  scheme  across  the  country  since  February  2024.  The Scheme targets  to  achieve  rooftop  solar  installations  in  one  crore  households  in  the residential sector by FY 2026-27 with an outlay of Rs 75,021 crore. A total of 15.63 lakh households has been benefitted with installation of rooftop solar under the PM Surya Ghar Muft Bijli Yojana as on 17.07.2025.
2. Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): The PM-KUSUM Scheme was launched by the Government  in  March,  2019  to  provide financial  support  to  the  farmers  for  installation  of  standalone  solar  pumps  and solarization of existing grid-connected agriculture pumps, and to provide the farmers an opportunity  to  become  solar  entrepreneurs  by  installing  solar  power  plants  on  their barren/fallow/agriculture land. The Scheme consists of three components:
3. Component-A: 10,000 MW of Decentralized Ground Mounted Grid Connected Solar Power Plants.
4. Component-B: Installation  of  14  lakh  standalone  Solar  Powered  Agriculture Pumps.
5. Component-C: Solarisation of 35 Lakh Grid-connected Agriculture Pumps.

All three components combined; the scheme aims to add a solar capacity of 34.8 GW with total central financial of Rs. 34,422 crore. As on 30-06-2025, 638.99 MW has been installed  under  Component-A,  8,40,947  nos.  of  standalone  solar  pumps  have  been installed under Component-B, and 5,98,113 nos. of grid-connected pumps have been installed under Component-C.

3. New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri  Janjati  Adivasi  Nyaya  Maha  Abhiyan  (PM  JANMAN)  and  Dharti  Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA): The scheme aims to provide electricity to households, multi-purpose centres and public institutions in Tribal and PVTG areas by provision of off-grid solar systems. The off-grid solar systems are provided only where electricity supply through grid is not techno-economically feasible. As on 30-06-2025,

a  total  of  2805  nos.  of  households  have  been  benefitted  in  various  States  under  the scheme.

4.  Schemes for Development of Solar Parks and Ultra-mega Solar Power Projects with a target of setting up 40,000 MW capacity. Under the scheme, the infrastructure such as  land,  roads,  power  evacuation  system  water  facilities  are  developed  with  all statutory clearances/approvals. Thus, the scheme helps expeditious development of utility-scale solar projects in the country.
5. Production Linked Incentive scheme 'National Programme on High Efficiency Solar PV Modules' for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules.
6.    Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by Government Producers, using domestically manufactured solar PV cells and  modules,  with  Viability  Gap  Funding  (VGF)  support,  for  self-use  or  use  by Government/ Government entities, either directly or through Distribution Companies (DISCOMS).

## ANNEXURE-II REFFERED TO IN REPLY TO PART (a) & (b) OF LOK SABHA UNSTARRED QUESTION NO. 1795 FOR 30.07.2025

Details Of Funds Sanctioned Under the Schemes During Last Two Years

| Financial Year   |   Funds Sanctioned (In Rs. crore) |
|------------------|-----------------------------------|
| 2023-2024        |                           4834.07 |
| 2024-2025        |                          12237.6  |

## ANNEXURE-III REFFERED TO IN REPLY TO PART (c) & (d) OF LOK SABHA UNSTARRED QUESTION NO. 1795 FOR 30.07.2025

## Central Financial Assistance (CFA)/ Incentives being provided for the implementation

## of Solar Energy Schemes/Programmes

| Scheme/Programmes                                                                                                                                            | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                          | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                          | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                          | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a) PM Surya Ghar: Muft Bijli Yojana Yojana for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. | 1. Under the PMSG: MBY, the CFA for installation of Rooftop Solar in the Residential Sector is given below:                                                                                                                                                                                                                                                                                                                               | 1. Under the PMSG: MBY, the CFA for installation of Rooftop Solar in the Residential Sector is given below:                                                                                                                                                                                                                                                                                                                               | 1. Under the PMSG: MBY, the CFA for installation of Rooftop Solar in the Residential Sector is given below:                                                                                                                                                                                                                                                                                                                               | 1. Under the PMSG: MBY, the CFA for installation of Rooftop Solar in the Residential Sector is given below:                                                                                                                                                                                                                                                                                                                               |
| a) PM Surya Ghar: Muft Bijli Yojana Yojana for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. | S.No.                                                                                                                                                                                                                                                                                                                                                                                                                                     | Type of Residential Segment                                                                                                                                                                                                                                                                                                                                                                                                               | CFA                                                                                                                                                                                                                                                                                                                                                                                                                                       | CFA(Special Category States/UTs)                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                              | 1                                                                                                                                                                                                                                                                                                                                                                                                                                         | Residential Sector (first 2 kWp of Rooftop Solar (RTS) capacity or part thereof)                                                                                                                                                                                                                                                                                                                                                          | Rs.30,000/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             | Rs.33,000/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                              | 2                                                                                                                                                                                                                                                                                                                                                                                                                                         | Residential Sector (with additional RTS capacity of 1 kWp or part thereof)                                                                                                                                                                                                                                                                                                                                                                | Rs.18,000/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             | Rs.19,800/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                              | 3                                                                                                                                                                                                                                                                                                                                                                                                                                         | Residential Sector (additional RTS capacity beyond 3 kWp)                                                                                                                                                                                                                                                                                                                                                                                 | No additional CFA                                                                                                                                                                                                                                                                                                                                                                                                                         | No additional CFA                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                              | 4                                                                                                                                                                                                                                                                                                                                                                                                                                         | Group Housing Societies/ Residential Welfare Associations (GHS/RWA) etc. for common facilities including EV charging up to 500 kWp (@ 3                                                                                                                                                                                                                                                                                                   | Rs.18,000/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             | Rs.19,800/kWp                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                              | kWp per house) 2. The PMSG: MBY scheme includes the provision for incentive to DISCOMs to motivate and help them in activities such as create conducive regulatory and administrative mechanisms, achieve targets for implementation. The incentive is pegged at 5% of applicable benchmark cost for capacity achieved above 10% and less than 15% of installed base capacity; 10% of the applicable benchmark cost for capacity achieved | kWp per house) 2. The PMSG: MBY scheme includes the provision for incentive to DISCOMs to motivate and help them in activities such as create conducive regulatory and administrative mechanisms, achieve targets for implementation. The incentive is pegged at 5% of applicable benchmark cost for capacity achieved above 10% and less than 15% of installed base capacity; 10% of the applicable benchmark cost for capacity achieved | kWp per house) 2. The PMSG: MBY scheme includes the provision for incentive to DISCOMs to motivate and help them in activities such as create conducive regulatory and administrative mechanisms, achieve targets for implementation. The incentive is pegged at 5% of applicable benchmark cost for capacity achieved above 10% and less than 15% of installed base capacity; 10% of the applicable benchmark cost for capacity achieved | kWp per house) 2. The PMSG: MBY scheme includes the provision for incentive to DISCOMs to motivate and help them in activities such as create conducive regulatory and administrative mechanisms, achieve targets for implementation. The incentive is pegged at 5% of applicable benchmark cost for capacity achieved above 10% and less than 15% of installed base capacity; 10% of the applicable benchmark cost for capacity achieved |

| Scheme/Programmes                                                                                                                                                                                                                                                                                                                                                                                      | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                        | 3. To push the deployment of residential rooftop solar system (RTS) and undertake local mobilization efforts, the PMSG: MBY scheme also includes the provision for incentive to the Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs), at the rate of Rs.1000 for every installation of RTS in residential segment in the jurisdiction of ULB/PRI, for which CFA has been transferred to consumer. 4. Further, a fund of Rs. 800 crore has been provisioned for developing a Model Solar Village in each district of the country, with an assistance of Rs 1 crore per Model Solar Village under PMSG: MBYscheme. |
| b) Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer Scheme) for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects by Government Producers, using domestically manufactured solar PV cells and modules, with Viability Gap Funding (VGF) support, for self-use or use by Government/ Government entities, either directly or through Distribution | Viability Gap Funding (VGF) support up to Rs. 55 lakhs perMW to the CPSUs/Govt. Organizations entities selected through competitive bidding process.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| c) PLI Scheme 'National Programme on High Efficiency Solar PV Modules' for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency Solar PV modules (Tranche- I &II).                                                                                                                                                                                                              | The beneficiaries are eligible for Production Linked Incentive (PLI) on production and sale of solar PV modules. The quantum of PLI eligible for disbursal depends upon: (i) quantum of sales of solar PV modules; (ii) performance parameters (efficiency and temperature coefficient of maximum power) of solar PV modules sold; and (iii) percentage of local value addition in modules sold.                                                                                                                                                                                                                                |
| d) Solar Park Scheme with a target of setting up 40,000 MW capacity. Under the scheme, the infrastructure such as land, roads, power evacuation system water facilities are developed with                                                                                                                                                                                                             | (a) Up to Rs. 25 lakhs per Solar Park, for preparation of Detailed Project Report (DPR). (b) Rs. 20 lakh per MWor 30% of the project cost, whichever is lower, for development of shared infrastructure of Solar Park.                                                                                                                                                                                                                                                                                                                                                                                                          |

| Scheme/Programmes                                                                                                                                                                                                                                                                                                            | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| all statutory clearances/approvals. Thus, the scheme helps expeditious development of utility-scale solar projects in the country.                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| e) PM-KUSUM scheme for setting up decentralized solar or other renewable energy power plants, installation of stand-alone solar agriculture pumps, and solarization of existing grid-connected agriculture pumps, including feeder-level solarization. The scheme benefits not only farmers but also the States and DISCOMs. | Component A : Setting up of 10,000 MW of Decentralized Ground/Stilt Mounted Solar Power Plants Benefits available: Procurement Based Incentive (PBI) to the DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is lower, for buying solar power under this scheme. The PBI is given to the DISCOMs for a period of five years from the Commercial Operation Date of the plant. Therefore, the total PBI payable to DISCOMs is up to Rs. 33 Lakh per MW. Component B : Installation of 14 Lakh Stand-alone Solar Pumps Benefits available: CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar agriculture pump is provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and A&NIslands, CFAof 50% of the benchmark cost or the tender cost, whichever is lower, of the stand-alone solar pump is provided. Component B can also be implemented without State share of 30%. The Central Financial Assistance will continue to remain 30% and rest 70% will be borne by the farmer. Component C: Solarisation of 35 Lakh Grid Connected Agriculture Pumps including through Feeder Level Solarisation Benefits available: (a) Individual Pump Solarization (IPS): CFA of 30% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component will be provided. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and A&NIslands, CFAof 50% of the benchmark cost or the tender cost, whichever is lower, of the solar PV component is provided. Component C (IPS) can also be implemented without State share of 30%. The Central Financial Assistance will continue to remain 30% and rest 70% will be borne by the farmer. (b) Feeder Level Solarization (FLS): Agriculture feeders can be solarized by the State Government in CAPEX or RESCO mode with CFA of Rs. 1.05 Crore per MW as provided by MNRE. However, in North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarkhand, Lakshadweep |

| Scheme/Programmes                                                                                                                                                                                                                                                                                                                    | Incentives presently available as per the Scheme                       | Incentives presently available as per the Scheme                                                            | Incentives presently available as per the Scheme                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                      | and Andaman & Nicobar Island, CFA of Rs. 1.75 crore perMW is provided. | and Andaman & Nicobar Island, CFA of Rs. 1.75 crore perMW is provided.                                      | and Andaman & Nicobar Island, CFA of Rs. 1.75 crore perMW is provided.          |
| f) New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing off-grid Solar Lighting where electricity supply through grid is not techno-economically feasible. |                                                                        | Components                                                                                                  | Central Share (100%)                                                            |
| f) New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing off-grid Solar Lighting where electricity supply through grid is not techno-economically feasible. |                                                                        | Provision of 0.3 kW Solar offgrid system for 1 lakh Tribal and PVTG HHs                                     | Rs. 50,000 per HH or as per actual cost                                         |
| f) New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing off-grid Solar Lighting where electricity supply through grid is not techno-economically feasible. |                                                                        | Solar street lighting and provision of lighting in 1500 MPCs of PVTG areas (under PM JANMAN component only) | Rs. 1 lakh per MPC                                                              |
| f) New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing off-grid Solar Lighting where electricity supply through grid is not techno-economically feasible. |                                                                        | Solarisation of 2000 public institutions through off-grid solar systems (under DA JGUA component only)      | Rs 1 lakh per kW with maximum solar PV capacity of 20 kW per public institution |