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					</table>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has announced that the President of India has approved the PM-Surya Ghar: Muft Bijli Yojana, with a budget of ₹750.21 billion (~$9 billion). The ministry also issued a breakdown of central financial assistance for residential houses, group housing societies, and residential welfare associations.
The PM Surya Ghar initiative aims to install rooftop solar projects in ten million poor and middle-class households.
The Indian government <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">launched</a> the program on February 13, 2024. It encompasses all aspects of the previous Phase II, including its financial allocation and obligations.
The budget breakdown for the program is as follows, with nine sub-components allocated funds accordingly. Central financial assistance (CFA) for residential consumers stands at ₹657 billion ($7.9 million), while incentives for DISCOMs amount to ₹49.5 billion ($597 million), encompassing previous program expenditures.
Additionally, incentives for local bodies receive ₹10 billion ($120.6 million), model solar villages in each district receive ₹8 billion ($96.4 million), innovative projects get ₹5 billion ($60.3 million), and the payment security mechanism is allotted ₹1 billion ($12.06 million).
Capacity building, awareness and outreach, and service charges, each set at 1% of CFA, are allocated ₹6.57 billion (~$79.2 million).
The program will be executed through the national portal, and subsidies/CFA under the PM-Surya Ghar: Muft Bijli Yojana will apply to all applications submitted on or after February 13, 2024.
Regarding the CFA distribution, the Ministry provided the following breakdown:
<ul>
<li>Residential sectors with a tender capacity of up to 2 kW or part thereof will receive 60% of the benchmark cost of 2 kW.</li>
<li>Additional tender capacity in the residential sector (up to 1 kW) will qualify for 40% of the benchmark cost of the additional kW.</li>
<li>No additional CFA will be provided for residential sectors beyond 3 kW.</li>
<li>Group housing societies and residential welfare associations (GHS/RWA) for common facilities, including EV charging, up to 500 kW (@3 kW per house), are eligible for 40% of the benchmark cost of additional kW.</li>
</ul>
Based on the benchmark cost for FY 2023-24, rooftop solar projects up to 2 kW in residential households receive ₹30,000 ($361.85)/kW or part thereof, while additional capacity between 2 kW and 3 kW is eligible for ₹18,000 ($217.12)/kW. GHS/RWA will receive ₹18,000 ($217.12)/kW as central financial assistance.
Detailed operational guidelines for program implementation will be issued separately by the Ministry.
The program recently <a href="https://cms.mercomindia.com/ntpc-win-seci-solar-tranche-xvi-auction/" target="_blank" rel="noopener">received</a> cabinet approval in February 2024.
According to Mercom India Research’s newly unveiled 2023 <a href="https://www.mercomindia.com/product/rooftop-solar-market-report-q4-2023" target="_blank" rel="noopener">Q4 &amp; Annual Mercom India Rooftop Solar Market Report</a>, India installed 1.7 GW of rooftop solar capacity in 2023, the second-highest annual installation numbers on record.

Housing Societies to Receive ₹18,000/kW CFA Under New Rooftop Solar Program

Prime Minister Narendra Modi e-inaugurated a 45 MW monocrystalline solar panel manufacturing unit at Pandit Deendayal Petroleum University (<a href="https://www.pdpu.ac.in/" target="_blank" rel="noopener noreferrer">PDPU</a>) in Gujarat.
&#8220;The setting up of the 45 MW solar panel manufacturing plant or the &#8216;Centre of Excellence on Water Technology&#8217; reflects the broader vision of PDPU towards the country,&#8221; the Prime Minister said.
Addressing the students during the eighth convocation, the Prime Minister added, &#8220;India is making giant strides as far as solar power is concerned.  Today, the price per unit has gone down to less than ₹2 (~$0.02)/kWh from ₹12 (~$0.16)-13 (~$0.17)/kWh.&#8221;
According to <a href="https://mercomindia.com/research-2/" target="_blank" rel="noopener noreferrer">Mercom India Research</a>, there are over 75 units with a module manufacturing capacity of 50 MW and below in India as of September 2020.
Reiterating the importance of solar energy, the Prime Minister said solar power has become a priority in our country. The country would achieve the target of 175 GW of renewable energy before 2022.
“You are entering the industry at a time when major changes are taking place in the energy sector across the world due to pandemic. Therefore, there is immense potential in the growth, enterprising spirit, and employment in the energy sector in India. In a way, you have arrived at the right time in the right sector.”
Since the pandemic wreaked havoc globally, countries have <a href="https://mercomindia.com/government-shifts-focus-solar-manufacturing-rpo/" target="_blank" rel="noopener noreferrer">shifted</a> gears to stabilize their economies amid tumbling markets. India has begun to push the cause of domestic manufacturing with a renewed thrust.
Recently, the central government <a href="https://mercomindia.com/india-gets-incentive-plan/" target="_blank" rel="noopener noreferrer">approved</a> a production-linked incentive plan in ten critical sectors to enhance India’s manufacturing capabilities and exports under the Atmanirbhar Bharat initiative. The government said in a notification that it would allocate ₹1.45 trillion (~$19.61 billion) for the ten critical sectors over the next five years. Some of these critical sectors include- high-efficiency solar photovoltaic modules, advanced chemistry cell battery, and automobiles and auto components. The government will allocate ₹796.42 billion (~$10.75 billion) for these three sectors in the next five years.
Previously, the central government also held a conclave to <a href="https://mercomindia.com/mnre-hold-conclave-to-discuss/" target="_blank" rel="noopener noreferrer">discuss</a> India’s solar manufacturing plans with willing states.
Image credit: Kremlin.ru, CC BY <a href="https://upload.wikimedia.org/wikipedia/commons/0/00/Prime_Minister_of_India_Narendra_Modi_at_an_informal_meeting_of_heads_of_state_and_government_of_the_BRICS_countries%2C_Hamburg_2017.jpg" target="_blank" rel="noopener noreferrer">4.0</a>

Gujarat’s Petroleum University Inaugurates a 45 MW Solar Module Manufacturing Unit

The Ministry of Power (<a href="https://powermin.nic.in/" target="_blank" rel="noopener noreferrer">MoP</a>) announced that the Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved the asset monetization of the Power Grid Corporation of India Limited (<a href="https://www.powergridindia.com/" target="_blank" rel="noopener noreferrer">PGCIL</a>) through the Infrastructure Investment Trust (InvIT) model.
The financial instrument I’nvIT’ was launched as a part of a brownfield asset monetization strategy to enhance infrastructure investments, which would provide an opening for the general public and institutional investors to invest in the infrastructure sector.
The InvIT model has been designed in a way that’s similar to mutual funds. In this, small sums of investor’s money are pooled together to invest in a project. This provides a steady cash flow over a period of time, a part of which goes back to the investors in the form of dividends.
According to the press release, PGCIL, a state-owned power transmission company, will be the first public sector undertaking (PSU) in the power sector to undertake asset recycling through the monetization of its assets by the InvIT model. The company plans to utilize the proceeds from asset monetization for its new and under-construction projects as well as capital expenditure.
The approval will facilitate PGCIL to monetize its assets that are held in the form of special purpose vehicles (SPVs) like high voltage transmission lines and substations. The company is expected to monetize assets with a gross block worth over ₹70 billion (~$ 950.86 million) in the first lot. It also has a capital expenditure plan of ₹205 billion (~$2.78 billion) for the next two years.
“Asset recycling is a key strategy of the government of India to release the capital invested in operational assets, and the proposed InvIT of the PGCIL would attract both domestic as well as global investors including sovereign wealth funds. Sale of assets to InvITs is a way of accessing long-term, relatively cheap finance required for infrastructure projects in the transmission sector,” said the government’s press statement.
Mercom earlier <a href="https://mercomindia.com/powergrid-separate-transmission-business/" target="_blank" rel="noopener noreferrer">reported</a> that the PowerGrid Corporation of India Limited had announced its plans to separate its power transmission business to form a 100% subsidiary that would carry out transmission-related functions, as per the Ministry of Power’s directions. The newly formed subsidiary would have separate accounting and board structures.
In July 2020, Tata Power <a href="https://mercomindia.com/tata-power-invit-renewable-business/" target="_blank" rel="noopener noreferrer">announced</a> that its board of directors had given its in-principle approval for setting up an InvIT for the company’s renewable business. This was part of the company’s long-term strategic plan to reduce debt, strengthen its balance sheets, and improve overall return metrics.

Cabinet Approves Asset Monetization of Power Grid Corporation Through InvIT Model

Prime Minister Narendra Modi said that India is going to increase the share of non-fossil fuels to 175 GW by 2022 and will further take it to 450 GW.
He was speaking to the world leaders who had gathered in New York for the <a href="https://www.un.org/en/" target="_blank" rel="noopener noreferrer">United Nations</a> Secretary General (UNSG) Climate Action Summit.
The Summit is being called by UNSG António Guterres to ramp up climate actions worldwide.
Modi said, “We must accept that if we have to overcome a serious challenge like climate change, then what we are doing now is just not enough. What is needed today, is a comprehensive approach which covers everything from education to values, and from lifestyle to developmental philosophy.”
According to the recent <a href="https://mercomindia.com/india-solar-capacity-q2-2019-1-5-gw/" target="_blank" rel="noopener noreferrer">Q2 2019 India Solar market update</a> published by Mercom India, renewable energy capacity additions crossed 120 GW mark (including large hydro) and accounted for nearly 35.4% of India’s capacity mix at the end of June 2019.
The Indian prime minister expressed that an ounce of practice is worth more than a ton of preaching. Speaking on the occasion, Modi informed the world leaders that India has launched the Jal Jeevan (water life) mission for the conservation of water, rainwater harvesting and for the development of water resources. India is planning to spend approximately $50 million (₹3.5 billion) on Jal Jeevan in the next few years, informed the PM.
The prime minister further said that during the occasion of India’s 73rdIndependence Day celebration, India called for a people’s movement to end the menace of single-use plastic. He expressed hope that this will create awareness at a global level about the harmful effects of single-use plastic.
“On the International forum, almost 80 countries have joined our International Solar Alliance (ISA) campaign. In order to make our infrastructure disaster resilient, India is launching a Coalition for Disaster Resilient Infrastructure,” said the PM inviting UN member states to join the coalition.
Having the key focus on raising ambition and accelerate action to implement the Paris Agreement, the Climate Action Summit focuses on nine interdependent tracks, which are led by 19 countries and are supported by international organizations.
Earlier, United Nations Secretary-General, António Guterres shed light on the significance of science and technology and its use as a powerful tool in combating climate change.
“The climate crisis is caused by us and the solutions must come from us. We have the tools, technology is on our side, readily available technological substitutions already exist for more than 70% of today’s emissions”, he added.
Image credit: Ministry of Environment, Forest and Climate Change, Govt. of India

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