Lok Sabha Question No. 6114 (UNSTARRED), answered on 2026-04-01
Subject: Solar and Wind Power Plants in Rural Areas
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shri Anil Firojiya

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 6114

ANSWERED ON 01.04.2026

## SOLAR AND WIND POWER PLANTS IN RURAL AREAS

## 6114. SHRI ANIL FIROJIYA

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

- (a) whether the Government is implemented any new scheme to increase solar energy generation in the country and if so, the details thereof;
- (b) whether the Government is implementing  any  special  programmes to set  up solar power plants in rural areas;
- (c) whether the Government proposes to approve new projects to increase wind energy production and if so, the details thereof;
- (d) whether the Government proposes to introduce any new policy to promote private investment in the renewable energy sector and if so, the details thereof; and
- (e) whether the Government has set any targets for increasing renewable energy capacity by the year 2030 and 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 increase solar energy generation in the country, including rural areas. The details of operational schemes are given at AnnexureI.
- (c) At present, there is no scheme for providing financial subsidy/incentive for installation of onshore  wind  power  projects.  The  wind  power  projects  are  being  installed  by  private companies/public sector enterprises based on techno-economic assessment.

Further, in order to kick start the offshore wind sector, the Government has launched 'Viability Gap Funding (VGF) scheme for offshore wind energy projects' at a total outlay of ₹ 7453 crore, including an outlay of ₹ 6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and grant of ₹ 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.

- (d) Presently, most of the renewable energy projects are set up by private sector developers. The  Government  has  taken  various  policy  measures  to  promote  private  investment  in  the renewable energy sector, the details of which are given at Annexure-II.
- (e)  In  line  with  Hon'ble  Prime  Minister's  announcement  at  COP26,  Ministry  of  New  and Renewable Energy is working towards achieving 500 GW of installed electricity capacity from non-fossil sources by 2030.

*****

## Annexure-I referred to in reply of part (a) & (b) of the Lok Sabha Unstarred Question No. 6114 to be answered on 01.04.2026

## Details of operational schemes to promote solar energy generation in the country

## Scheme/Programmes

(a)  PM  Surya  Ghar:  Muft Bijli Yojana (PMSG: MBY) for installing rooftop solar and providing  free  electricity  up  to 300 units every month for One Crore households.

## Incentives presently available as per the Scheme

1. Under the PMSG: MBY, the CFA for installation of Rooftop Solar in the Residential Sector is given below:
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 beyond 15% of installed base capacity.
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
- f) New  Solar  Power  Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN)  and  Dharti  Aaba Janjatiya Gram Utkarsh Abhiyan  (DA  JGUA).  Under the scheme, off-grid solar systems (Solar Home Lighting Systems/Solar Power Pack/Solar Mini Grids) are provided  to  tribal  and  PVTG households (HHs), MultiPurpose  Centers  (MPCs)  and Public Institutions (PIs) in Tribal  and  PVTG areas where electrification through conventional grid is technoeconomically not feasible.

|   Sl. 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)                                                                       | ₹30,000/kWp       | ₹33,000/kWp                        |
|         2 | Residential Sector (with additional RTS capacity of 1 kWp or part thereof)                                                                             | ₹18,000/kWp       | ₹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 kWp per house) | ₹18,000/kWp       | ₹19,800/kWp                        |

| Scheme/Programmes                                                                                                                                                                                                                                                                                                                                                                                     | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                       | (PRIs), at the rate of ₹ 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 ₹ 800 crore has been provisioned for developing a Model Solar Village in each district of the country, with an assistance of ₹ 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 ₹ 55 lakhs per MWto the CPSUs/Govt. Organizations entities selected through competitive bidding process.                                                                                                                                                                                                                                              |
| c) 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 (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 PVmodules sold; and (iii) percentage of local value addition in modules sold. |
| d) Scheme for Development of Solar Parks and Ultra-mega Solar Power Projects with a target of setting up 40,000MW capacity. Under the scheme, the                                                                                                                                                                                                                                                     | ₹ 20.00 lakh per MWor 30% of the project cost, whichever is lower, is provided for development of the parks. Beside this, CFA of up to ₹25 lakh per Solar Park is provided for preparation of Detailed Project Report (DPR).                                                                                                                                                                    |

| Scheme/Programmes                                                                                                                                                                                                                          | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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.        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| e) PM-KUSUM Scheme was launched by the Government in March, 2019 to enable the installation of standalone solar pumps, solarization of existing grid-connected agriculture pumps, and installation of solar power plants on farmer's land. | Component 'A': Setting up of 10,000 MWof Decentralized Ground/ Stilt Mounted grid-connected solar or other renewable energy-based power plants by the farmers on their land. Component 'B': Installation of 14 lakh standalone off-grid solar agriculture pumps. Component 'C': Solarization of 35 lakh existing grid-connected agriculture pumps including Feeder Level Solarization (FLS). The details of eligible financial assistance under PM KUSUM scheme are given below.                                                                                                                                                                                                          | Component 'A': Setting up of 10,000 MWof Decentralized Ground/ Stilt Mounted grid-connected solar or other renewable energy-based power plants by the farmers on their land. Component 'B': Installation of 14 lakh standalone off-grid solar agriculture pumps. Component 'C': Solarization of 35 lakh existing grid-connected agriculture pumps including Feeder Level Solarization (FLS). The details of eligible financial assistance under PM KUSUM scheme are given below. |
|                                                                                                                                                                                                                                            | Components Financial Assistance available ComponentA Procurement Based Incentive (PBI) provided to the DISCOMs @ paise/kWh or Rs.6.60 whichever is lower, for five years. is no CFAunder this Component. Component B Component C (Individual Pump Solarisation) • CFA of 30% of the benchmark issued by MNRE or the prices of systems discovered in the whichever is lower, is provided. • However, in North Eastern including Sikkim, Jammu Ladakh, Himachal Uttarakhand, Lakshadweep and Islands, CFAof 50%ofthe cost issued by MNRE or the prices the systems discovered in the whichever is lower, is provided. • In addition, the respective state/UT provide at least 30% financial |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | is 40 lakhs/MW/year, There                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | cost the tender, States &Kashmir, Pradesh, A&N benchmark of tender, to support. Balance cost is to be contributed by beneficiary.                                                                                                                                                                                                                                                                                                                                                |

| Scheme/Programmes   | Incentives presently available as per the Scheme                                                                                                                                                                                                                                                                      | Incentives presently available as per the Scheme                                                                                                                                                                | Incentives presently available as per the Scheme   |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|
|                     | Component C (Feeder Level Solarisation) For agriculture feeder solarization, CFA of Rs 1.05 Crore per MW(1.75 Cr. per MW for NER/ Hilly/ Islands) is provided. There is no mandatory requirement of financial support from participating State/UT. The feeder solarisation can be implemented in CAPEX or RESCO mode. | • Component Band Component C(IPS) of PM KUSUM scheme 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. |                                                    |

| Components                                                                                               | Central Share (100%)                                                           |
|----------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| Provision of 0.3 kW Solar off- grid system for 1 lakh Tribal and PVTG HHs                                | Maximum ₹ 50,000 per HHor as per actual cost                                   |
| Solar street lighting and provision of lighting in 1500 MPCsof PVTGareas (underPM JANMAN component only) | ₹ 1 lakh per MPC                                                               |
| Solarisation of 2000 PIs through off-grid solar systems (under DA JGUA component only)                   | ₹ 1 lakh per kW with maximum solar PV capacity of 20 kW per public institution |

## Annexure-II referred to in reply of part (d) of the Lok Sabha Unstarred Question No. 6114 to be answered on 01.04.2026

## Policy measures taken to promote private investment in the renewable energy sector

- 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.
- 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.
- Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
- 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.
- 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.
- Waiver on Inter State Transmission System (ISTS) charges for renewable energy projects including green hydrogen projects, with certain timelines and conditions.
- 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.
- Quality Control Orders for Solar Photovoltaic products (i.e., Solar PV Modules, Solar PV Inverters & Storage Battery) and Solar Water Heating systems notified.
- Issued National Framework for promoting & developing Energy Storage Systems.
- Issued Guidelines for Resource Adequacy Planning Framework for India.
- 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.
- 'National Repowering and Life Extension Policy for Wind Power Projects, 2023' has been issued.
- The Offshore Wind Energy Lease Rules, 2023 have been notified vide Ministry of External Affairs notification dated 19th December 2023, to regulate the grant of lease of offshore areas for development of offshore wind energy projects.
- The Revised Guidelines for installation of prototype wind turbine models issued on 12th June 2025.
- Procedure for inclusion/updating Wind Turbine Model in the Revised List of Models and Manufacturers  of  Wind  Turbines  (RLMM)  issued  on  31st  July  2025.  The  amendment renames RLMM as Approved List of Models and Manufacturers [ALMM (Wind)] and mandates  usage  of  listed  components  such  as  Blade,  Tower,  Generator,  Gearbox  and Special Bearings (Main, Pitch and Yaw Bearing) along with mandatory relocation of data centres within India and prohibition of real-time data transfer outside India.
- The Standard Operating Procedure (SOP) for ALMM-Wind and ALMM -Wind Turbine Components (ALMM-WTC) issued on 29 th  October 2025, detailing the end-to-end process for application, verification, factory inspection, component  evaluation and model enlistment.
- Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected Solar Inverters have been launched.
- To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been prepared till 2030.
- 'The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
- 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.
- Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Power through exchanges.
- 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.