Lok Sabha Question No. 463 (STARRED), answered on 2026-03-25
Subject: Investment in Solar Projects in Maharashtra
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Prof. Varsha Eknath Gaikwad, Shri Sanjay Dina Patil

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA STARRED QUESTION NO. 463

ANSWERED ON 25.03.2026

## INVESTMENT IN SOLAR PROJECTS IN MAHARASHTRA

* 463. PROF. VARSHA EKNATH GAIKWAD SHRI SANJAY DINA PATIL
- Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state: (a) whether the Government has taken note of the rapid expansion of solar power plants with the participation of domestic and foreign investors in Maharashtra during last three years and if so, the total solar capacity installed and under implementation in the State; (b) the quantum of Foreign Direct Investment received in the renewable energy sector in Maharashtra during said period particularly in solar energy projects and the major projects supported under the 100 per cent FDI automatic route; (c) whether large-scale ground-mounted or rooftop solar projects have been sanctioned or implemented within Mumbai including on Government buildings, railways, ports and public sector undertakings and if so, the details thereof; (d) the steps taken by the Government to promote rooftop solar adoption among residential societies and commercial establishments in Mumbai; and foreign investment and accelerate solar capacity addition in Maharashtra particularly in urban
- (e) whether any incentives, viability gap funding or policy measures are proposed to attract centres like Mumbai and if so, the details thereof?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, & FOOD AND PUBLIC DISTRIBUTION (SHRI PRALHAD JOSHI)

- (a) to (e) A Statement is laid on the Table of the House.

*****

## Statement  referred to in reply to parts (a) to (e)  of  the  Lok  Sabha  Starred Question No.463 to be answered on 25.03.2026 regarding ' Investment In Solar Projects In Maharashtra '

( a)  &  (b)  The  Government's    policy  framework,  including  100  per  cent  Foreign  Direct Investment  (FDI)  under  the  automatic  route,  has  enabled  participation  of  both  domestic  & global investors in the renewable energy (RE) projects, across the country.

During the last three financial years, from FY 2022-23 to FY 202425, India's RE sector has attracted  FDI  amounting  to  approximately  USD  10.27  Billion.  Out  of  this,  the  state  of Maharashtra  has  received  around  USD  1.08  Billion.  These  inflows  have  been  received predominantly in solar and wind energy segments, reflecting a strong investor interest.

As per inputs from the Maharashtra Energy Development Agency (MEDA), Maharashtra has witnessed  steady  growth  in  solar  installations  during  the  last  three  years.  The  cumulative installed solar capacity in the State as on 28.02.2026 stands at 19.36 GW.

(c) & (d) The PM Surya Ghar Muft Bijli Yojana (PMSG: MBY), which is a demand driven scheme, wherein all residential consumers in the country, having grid connected electricity connection of the local DISCOM can avail the benefits of the scheme, for installation of rooftop solar (RTS) systems, by applying on the National Portal.

The scheme has witnessed an impressive progress in the state of Maharashtra. The state is ranked 2 nd in  the country, by contributing 24% of the total households benefitted under the PMSG: MBY. As on 20.03.2026, a total of 4,90,666 RTS systems have been installed in the state, benefitting 7,79,184 households, out of which 556 RTS systems are installed benefitting 25,810 households in Mumbai.

Government has taken several steps to promote the rooftop solar adoption in residential sector including GHS/RWA across the country, including the state of Maharashtra; which includes:

- An end-to-end online process within the National Portal, for application to disbursal of subsidy directly into the bank account of the residential consumers.
- Simplified the regulatory approval process by waiving technical feasibility requirement and introducing auto load enhancement up to 10 kW.
- Net metering agreement has been made part of application in the National Portal.
- Availability of collateral-free loan from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years.
- Included Renewable Energy Service Company (RESCO)/Utility-Led Aggregation (ULA) Models.
- Simplified process for registration of vendors to ensure sufficient and qualified vendors are available.
- Established grievance redressal mechanism for timely resolution of grievances. A Call Centre with telephone number 15555 is operational in 12 languages.

The  PMSG:  MBY  scheme  provides  for  installation  of  RTS  systems  for  Group  Housing Societies/  Residential  Welfare  Associations  (GHS/RWA)  as  well,  with  central  financial assistance (CFA) of Rs. 18,000/- per kWp with rooftop solar plant capacity limit of 500 kWp. In Mumbai, 326 Group Housing Societies (GHS) / Residents' Welfare Associations (RWA) installed RTS under the scheme, benefitted 25,580 households.

Further,  saturation  of  Government  buildings  by  installation  of  RTS  is  one  of  the  key components of the PMSG: MBY. Detailed guidelines in this regard have been issued providing various implementation models and allocating Central Public Sector Enterprises (CPSEs) with experience  in  deployment  of  renewable  energy  technologies  to  assist  Central  Ministries  & States/UTs in deploying RTS on their buildings.

As  informed  by  the  MEDA,  a  total  of  1,03,043  Government  buildings  were  surveyed  in Maharashtra, while 33,536 buildings with 164.97 MW potential are found to be technically feasible.  A  total  of  48.88  MW  covering  5586  government  buildings  are  solarised  till 20.03.2026.

In Mumbai, 32 government buildings have been found to be technically feasible, to set up 985 kW of RTS. Out of these, bids are issued for 26 sites, and work orders have been issued for 20 sites. Further, no large-scale ground mounted solar power projects have been installed within Mumbai.

(e) Yes, in addition to permitting FDI up to 100 percent under the automatic route, to attract foreign investment in renewable energy sector, the Government has also taken several other policy initiatives to promote and accelerate renewable energy capacity in the country.  The details are enclosed at Annexure - I.

The state of Maharashtra is leading in the implementation of PM KUSUM scheme, which aims at  farm  solarization,  through  various  innovative  models.  Further,  the  Government  of Maharashtra has also taken several policy measures and innovative steps to accelerate solar capacity addition in the State, including Mumbai, as detailed in Annexure -II .

## ANNEXURE - I REFERRED TO IN REPLY TO PART (e) OF LOK SABHA STARRED QUESTION NO. 463 FOR 25/03/2026

## Details of steps taken to promote and accelerate solar energy installations in the country

- i. Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable Renewable Energy (FDRE) projects have been issued.
- ii. To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is  applicable to all designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance. RCO also includes specified quantum of consumption from Decentralized Renewable Energy sources.
- iii. Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, 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), National Green Hydrogen Mission, Viability  Gap  Funding  (VGF)  Scheme  for  Offshore  Wind  Energy  Projects  have  been launched.
- iv. Scheme  for  setting  up  of  Solar  Parks  and  Ultra  Mega  Solar  Power  projects  is  being implemented to provide land and transmission to RE developers for installation  of RE projects at large scale.
- v. Waiver on Inter State Transmission System (ISTS) charges for renewable energy projects including green hydrogen projects, with certain timelines and conditions.
- vi. Laying of new transmission lines and creating new sub-station capacity has been funded under the Green Energy Corridor Scheme for evacuation of renewable power.
- vii. Quality Control Orders for Solar Photovoltaic products (i.e., Solar PV Modules, Solar PV Inverters & Storage Battery) and Solar Water Heating systems notified.
- viii. Issued National Framework for promoting & developing Energy Storage Systems.
- ix. Issued Guidelines for Resource Adequacy Planning Framework for India.
- x. Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five hundred Kilowatt or up to the electrical sanctioned load, whichever is lower.
- xi. Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected Solar Inverters have been launched.
- xii. To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2030.
- xiii. 'The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
- xiv. Electricity  (Promoting  Renewable Energy Through Green Energy Open Access) Rules, 2022, notified on 06 th June 2022 with objective of ensuring access to affordable, reliable, and  sustainable  green  energy  for  all.  Green  Energy  Open  Access  is  allowed  to  any consumer with contract demand of 100 kW or above through single or multiple single connection  aggregating  Hundred  kW  or  more  located  in  same  electricity  division  of  a distribution licensee.
- xv. Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Power through exchanges.
- xvi. Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.

## ANNEXURE - II REFERRED TO IN REPLY TO PART (e) OF LOK SABHA STARRED QUESTION NO. 463 FOR 25/03/2026

## Steps taken by Government of Maharashtra to accelerate solar capacity addition

- i. The state has launched the Renewable Energy & Energy Storage policy 2025-2036 to increase clean energy generation and improve energy security. This policy promotes solar + battery storage projects to improve reliability and support the grid. The Policy further provides allotment of Government land, leasing of private land on set rates, development of Renewable Energy Industrial Zones, strengthening of transmission network, advance planning of evacuation infrastructure and promotion of energy storage and hybrid projects for reliable grid integration of renewable energy.
- ii. Under Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0 , about 16 GW solar capacity is planned and day time power supply to farmers is being implemented.
- iii. To benefit the low consumption households, Government of Maharashtra has launched the 'Swayampurna Maharashtra Aawasiya Roof top' (SMART )  solar  yojana  to  extend state financial assistance of up to Rs 17500 for 1 kW roof top solar on households of Below Poverty Line (BPL) consumers and other residential consumers having less than 100 units consumption per month.
- iv. Under Green Open Access, consumers (including MSMEs) can directly buy solar power, with eligibility reduced to 100 kW, making access easier. Thus, there is strong growth in the  captive  and  open  access  solar  project  specially  for  industries,  increasing  private investment.
- v. Solar projects (especially captive with storage) are given electricity duty exemption for up to 10 years, as a fiscal incentive.
- vi. Renewable Purchase Obligation increased to about 43.33% by 2030, ensuing demand for solar power.
- vii. Facilitation of renewable energy projects through single-window support by MEDA.
- viii. Submission of taluka-wise solar potential reports to MSETCL for strengthening intrastate transmission infrastructure.
- ix. The best practices adopted by Maharashtra under PM KUSUM are as follows:
- a. The  state  has  developed  a  dedicated  'Online  Land  Bank'  Portal  with  the  help  of advanced IT technologies. This included Identification and Aggregation of land parcels (~40,000 Acres: Govt & Pvt Land) within 5-10 km radius of 33/11 KV Distribution Substations using PM Gati Shakti Portal, Maha-Bhulekh Portal of land Revenue dept.
- b. To  address  the  issue  of  power  evacuation  capacity,  state  has  carried  out  technical feasibility studies and strengthening activities. The state surveyed the solar capacity of all the substations wherein agriculture load is prominent, which enables the state to set up  solar  power  plants  availing  CFA  of  Rs.  1.05  Crores/MW,  which  helps  to  get  a competitive tariff.
- c. The state has adopted an innovative model for cluster-based tenders that benefits solar project developers with technical experience in installing solar projects by providing them with economies of scale. This model involves aggregating the solar capacities to be installed based on the availability of government-leased revenue lands, along with all necessary No Objection Certificates (NOCs) from the relevant government departments, which must be in place at the tendering stage.