Central Financial Assistance (Subsidy) upto Rs 22,500/kWp available to eligible customers
There is never really a bad time to start with something that will have lasting positive impact, as solar would, on our coming generations. Having said that, would it not be wonderful if there is even more incentive for you to take the jump and go solar?Thanks to the 500MW rooftop tender by Solar Energy Corporation of India (SECI), a Government of India body, you can earn at least 30% subsidy on the solar PV system. The subsidy though, is available only to those who are eligible. The question of who can avail the SECI subsidy
alongside several other points and things that you need to know about the subsidy are answered below:
Who is Eligible to get CFA (Subsidy)
|S No||Category of Consumer||Coverage of Buildings|
|1||Residential ||All types of residential buildings|
|2||Institutional ||Schools, health institutions including medical colleges & hospitals, universities, educational institutions, etc. (applicable to not-for-profit registered organizations only)|
|3||Social sector ||Community centers, welfare homes, old age homes, orphanages, common service centers, common workshops for artisans or craftsman, facilities for use of community, Trusts/ NGOs/Voluntary organizations/ Training institutions, any other establishments for common public use, etc. (applicable to not-for-profit registered organizations only)|
While 30% subsidy is for most of the general states and Union Territories, there is a higher, 70% subsidy that is available for states and UTs that fall in the special category. This includes the North Eastern States, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar islands. The below table summarizes the subsidy that is applicable:
|Category ||Gen category States/UTs ||Special Category i.e. NE, Sikkim, Uttarakhand, HP, J&K, Lakshadweep, A&N Islands |
|PART-A(25 – 500kWp) CAPEX||30% of L1 quoted project cost of State or Rs 22.5/Wp, whichever is lower||70% of L1 quoted project cost of State or Rs 52.5/Wp, whichever is lower|
|PART-B (25 – 500kWp) RESCO ||30% of benchmark cost i.e. Rs 22.5/Wp||70% of benchmark cost i.e. Rs 52.5/Wp|
|PART-C (Upto 25 kWp) CAPEX||30% of L1 quoted project cost of State or Rs 22.5/Wp, whichever is lower||70% of L1 quoted project cost of State or Rs 52.5/Wp, whichever is lower|
Check the SECI subsidy available in your state here
.You must have noticed from the table above that there are three categories to the tender, in the form of Part A, B and C. The parts here, determine the size of the project and ownership type (whether CAPEX
) and therefore the subsidy that you can avail. We explain the size of the projects below:
Size Of the project
|Upto 25 kWp ||– PART C (One project may comprise of several rooftop units)|
|25 kWp ~ 500 kWp||– PART A and PART B|
SECI has also issued some guidelines when it comes to the connectivity of the plants based on their capacity. The connectivity guidelines are:
The maximum capacity for interconnection with the grid at a specific voltage level shall be as specified in the Distribution Code/Supply Code of the State and amended from time to time. Following criteria have been suggested for selection of voltage level in the distribution system.
|Plant Capacity||Connecting Voltage|
|Up to 10 kW||240V-single phase or 415V-three phase at the option of the consumer Above|
|10kW and up to 100 kW||415V,Three Phase|
|Above 100kW||At HT/EHT level (11kV/33kV/66kV) as per DISCOM Rule|
The maximum permissible capacity for rooftop shall be 1 MW for a single net metering point.The installers and developers who are participating in the tender will be expected to complete the following responsibilities:
Scope Of Work for the Solar Installer/ Developer
The Scope of work includes:
- Identification of buildings/leasing rooftop of buildings for 25 years.
- Obtaining an NOC (No Objection Certificate) from the DISCOM (Distribution Company) for grid connectivity.
- Complete design, engineering, manufacture, supply, storage, civil work, erection, testing and commissioning of the grid connected rooftop solar PV project.
- O&M (Operations and Maintenance) of the project for a period of 5 years for PART-A & Part C and O&M of the project for a period of 25 years for PART B after commissioning of the projects as per SECI’s acceptance.
If you decide to go Solar under the SECI subsidy via MYSUN, we will ensure the following Warranties and Guarantees
are taken care of by the Solar Installer/ Developer:
Warranties And Guarantees
- The goods supplied under this contract are new, unused, of the most recent or latest technology and incorporate all recent improvements in design and materials.
- Warranty covering the rectification of any and all defects in the design of equipment, materials and workmanship including spare parts for a period of 5 years from the date of commissioning for PART-A/PART-C projects and for 25 years for PART-B projects.
- The solar company shall transfer all the Guarantees/ Warranties of the different components to the Owner of the project.
- The responsibility of operation of Warrantee and Guarantee clauses and Claims/ Settlement of issues arising out of said clauses shall be joint responsibility of the solar installer/ developer and the owner of the project.
SECI has laid down certain solar generation parameters that the systems set up by the solar companies have to comply with. To ensure compliance, SECI has taken Performance Bank Guarantees
(PBG) from these solar companies and has linked subsidy disbursement with actual generation from the project These parameters would ensure that the customer gets the most returns and benefits when he goes solar. The following parameters must be complied with:
Plant Performance Evaluation
- The solar company shall be required to meet minimum guaranteed generation with Performance Ratio (PR) at the time of commissioning and related Capacity Utilization Factor (CUF) as per the GHI levels of the location during the O&M period.
- PR should be shown minimum of 75% at the time of inspection for initial commissioning acceptance to qualify for release of 30% subsidy.
- Minimum CUF of 15% to be maintained for a period of 5 years is one of the conditions for release of PBG. The solar company should send the periodic plant output details to SECI for ensuring the CUF. The PR will be measured at Inverter output level during peak radiation conditions.
The subsidy that you are eligible for will not be disbursed at one go. The ratio of the disbursement is below:
Subsidy Disbursement by SECI
- For General category states, the 20% subsidy shall be disbursed after successful Commissioning and acceptance of project and balance 10% subsidy after completion of first year of successful O&M.
- For special category states the 46% subsidy shall be disbursed after successful Commissioning and acceptance of project and balance 24% subsidy after completion of first year of successful O&M
SECI has also included definitions of certain terms. Aforementioned, wherever the following words are used, their definition is listed.
Definitions as per SECI
- CAPEX Model shall mean, the bidder/system integrator enters into an Agreement with the rooftop owner at the quoted project cost as per RFS for the Scope of work not limited to that indicated in the RFS as per mutually agreed terms and conditions. This model also allows energy sale at a tariff as per SECI Tender Document
- RESCO model shall mean where the bidders/Developers intend to take a rooftop owned by some other entity on mutually agreed terms and conditions including lease agreement from the roof top owner(s) and enters into the PPA with rooftop owner / DISCOM / others for supply of Solar power for 25 years at a tariff as per SECI Tender Document from the date of Commissioning of project.
- Rooftop Solar PV under the SECI tender shall mean solar PV array/system installed on the flat /inclined roof of the building / elevated platform on metallic or concrete structure minimum 10 feet above ground level / Ground mounted system (in the places where sufficient shadow free rooftop area is not available.) In such instance up to 40% Solar PV array/system capacity can be accommodated on nearby unutilized land subject to the SECI’s approval.
Now that you have virtually all the information you need about the SECI tender and the subsidy that you are eligible for, you must act now and make most of the opportunity. Go ahead and Register your Rooftop with MYSUN
to get going and start your journey towards solar now. If you are among those who are not eligible for the SECI subsidy, we request you to run the MYSUN Solar Calculator
in order to determine your solar potential. If the unbiased view of the calculator is that you should go solar, you must Register your Rooftop with us and reach out to us via our Contact Us page in case you require easy financial assistance.Image Source: SECI