Grid Connected Rooftop Solar Programme

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  • Published
    28th Feb, 2019


  • The Cabinet Committee on Economic Affairs given its approval for the Phase-II of Grid Connected Rooftop Solar Programme for achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022.
  • The programme will be implemented with total central financial support of Rs.11,814 crore.


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  • In the Phase-II Programme Central Financial Assistance (CFA) for the residential sector has been restructured with availability of 40% CFA for RTS systems up to 3 kW capacity and 20% for RTS system capacity beyond 3 kW and up to 10 kW.
  • For Group Housing Societies/Residential Welfare Associations (GHS/RAW), CFA will be limited to 20% for RTS plants for supply of power to common facilities.
  • The capacity eligible for CFA for GHS/RAW will be limited to 10 kW per house with maximum total capacity upto 500 kWp.
  • CFA under residential category will be provided for 4000 MW capacity and the same will be provided on the basis of benchmark cost or tender cost, which is lower.
  • Central financial support will not be available for other category i.e., institutional, educational, social, government, commercial, industrial, etc.
  • Under Phase-II Programme, focus will be on increased involvement of DISCOMs. Performance based incentives will be provided to DISCOMs based on RTS capacity achieved in a financial year.

What is Grid Connected Rooftop Solar Programme?

  • It is one of a series of World Bank’s engagements in India’s solar sector and is an important means for Ministry of New and Renewable Energy to implement its scheme to install 10GW of grid connected rooftop solar power on an accelerated basis.

The program has two components

  • Commercial Lending for GRPV
  • Institutional support and Technical Assistance

 Essentially two types of grid-connected rooftop systems are available:

  • Grid-tied wherein systems are primarily designed to supply the generated power to both the grid and the connected load (at consumer end).
  • These systems will not generate power during a power failure as the inverter shuts down the system to stop sending power into the grid and avoids the risk of electrocuting utility personnel who are working to repair the grid (i.e. islanding protection”).
  • Grid-interactive system works in conjunction with either a battery backup or diesel generator to support the load even during a power failure.

Objective of the Programme

  • To promote the grid connected SPV rooftop and small SPV power generating plants among the residential, community, institutional, industrial and commercial establishments.
  • To mitigate the dependence on fossil fuel based electricity generation and encourage environment friendly Solar electricity generation.
  • To create enabling environment for investment in solar energy sector by private sector, state government and the individuals.
  • To create enabling environment for supply of solar power from rooftop and small plants to the grid.
  • To encourage innovation in addressing market needs and promoting sustainable business models and ensures employment opportunities.
  • To provide support to channel partners and potential beneficiaries, within the framework of boundary conditions and in a flexible demand driven mode.
  • To create a paradigm shift needed for commoditization of grid connected SPV rooftop applications.
  • To support consultancy services, seminars, symposia, capacity building, awareness campaigns, human resource development, etc.
  • To encourage replacement of diesel, wherever possible.

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