The Ministry of New and Renewable Energy (MNRE) has increased the benchmark Central Financial Assistance (CFA) for grid-connected rooftop solar power systems under Phase II of the Grid-Connected Rooftop Solar Program.

The CFA for systems ranging from 1 kW to 3 kW, installed through tendering and national portal applications, is ₹18,000 ($216)/kW for general states and ₹20,000 ($240)/kW for special category states.

Systems of above 3 kW and up to 10 kW capacities will receive CFA of ₹9,000 (~$108)/ kW in general states and ₹10,000 ($120)/kW in special category states.

An individual household with up to a 3 kW system in a general category state is eligible for a subsidy of ₹18,000 ($216)/kW, an increase from the earlier ₹14,588 (~$175)/ kW.

The Ministry has removed the CFA for above 10 kW capacity systems for individual households as mentioned in the previous amendment.

For residential welfare associations (RWA) or group housing societies, a CFA of ₹9,000 (~$108)/kW will be offered in general states and ₹10,000 ($120)/kW in special category states for common facilities up to 500 kW at 10 kW per house.

Alternatively, CFA for projects installed through the tendering process can also be calculated as the percentage of cost discovered in the tender, as per rooftop solar program guidelines (40% for 1-3 kW and 20% for above 3-10 kW, 20% for group Housing/RWAs up to 500 kW). The lower of the calculated percentages will be applicable for that specific tender in the respective states or union territories.

Special category states include north-eastern states, including Sikkim, Uttarakhand, Himachal Pradesh, and the union territories of Jammu and Kashmir, Ladakh, Lakshadweep, and Andaman and Nicobar Islands.

All future bids scheduled to be closed after January 20, 2024, will be required to adhere to the revised rates.

All claims submitted in the rooftop solar portal after January 5, 2024, will be as per the revised rates.

In January, the Ministry issued the earlier CFA for residential rooftop solar consumers in special category states. The CFA for general states was last revised in August 2022.

MNRE extended Phase II of the rooftop solar program until March 31, 2026. The program was extended without any addition to the initially approved outlay of ₹118.14 billion (~$1.66 billion) for both the residential segment and distribution companies.

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