11.

Scheme for Installation of Solar Off-grid (Photo-voltaic and thermal) &

Decentralised applications under the Jawaharlal Nehru National solar Mission of
the Ministry of New and Renewwable Energy, Government of India
The Ministry of New and Renewable Energy (MNRE), Government of India has introduced a subsidy linked
credit scheme for Solar Offgrid (Photovoltaic & thermal) and decentralized applications to promote
commercial marketing of solar energy systems and devices by extending financial incentives in the form of
capital and interest subsidy on loans availed from financial institutions by the target clientele. The scheme
provides for routing the capital subsidy and the interest subsidy on bank loans availed of by the clients from
the banking system for solar energy conversion/ user systems and devices under this scheme through
National Bank for Agriculture and Rural Development (NABARD).
1. Objectives of the Scheme
To promote off-grid applications of solar energy (both PV and Solar Thermal) and create a paradigm shift
needed for commoditization of off-grid solar applications encourage replacement of non-renewable energy
sources like fossil fuels, kerosene and diesel with solar energy to meet the energy requirements.
2. Eligible Institutions
All Commercial Banks (including private commercial banks) and Regional Rural Banks
3. Capital Subsidy
The quantum of capital subsidy and refinance is as per the specifications of MNRE/IREDA from time to
time. Currently the capital subsidy would be to the extent of 30% of the benchmark cost. For the year 2010-
11, the benchmark price is as follows:
Component Capital subsidy limit (Rs.)
Photo voltaic with battery back-up 300 per Watt Peak (Wp)
Systems not using storage battery such as water pumping systems, the
installed PV system cost
210 per Wp
Evacuated Tube Collectors (ETCs) based solar water heating systems 3000 per square metre of
collector area
Flat Plate Collectors (FPCs) with liquid as the working fluid 3300 per square metre
Flat Plate Collectors with air as the working fluid 2400 per square metre of
collector area



4. Release of Capital Subsidy
STEP 1 The capital subsidy is released to the banks on receipt of the drawal application
format (Annexure-1) after sanction of the loan by the bank.
STEP 2 The capital subsidy component is released to the suppliers on behalf of the borrower by
the financing Banks only after satisfactory installation and commissioning of the system.
STEP 3 The borrower is enabled to access the benefit of the capital subsidy, the loan repayment
period would have a minimum lock in period of 3 (three) years from the date of
disbursement of the first installment of the loan.
5. Release of Refinance and Repayment Schedule
M
O
D
E
L
Photo
Voltaic
Module
(Wp)
12 V
Battery
(AH)
Indicative capability of the
system Lighting load/ other
loads and operation duration
Indicative
Cost (Rs.)

Maximum
Capital
Subsidy
Eligible
(Rs.)
Max. Loan
amt. (Rs.)
bearing
interest @
5%
I 10 10 10W/4 hour 3000 900 1500
II 18 20 10W/8 hour;
20W/4 hour
5400 1620 2700
III 37 40 10W/12 hour;
30W/4 hour
11100 3330 5550
IV 50 60 20W/8 hour;
40W/4 hour
15000 4500 7500
V 70 70 20W/12 hour; 30W/8 hour;
50W/4 hour; 60W/4 hour
21000 6300 10500
VI 85 120 40W/8 hour 25500 7650 12750
VII 100 120 30W/12 hour 30000 9000 15000
VIII 120 135 40W/12 hour; 50W/8 hour 36000 10800 18000
IX 150 150 60W/8 hour 45000 13500 22500
X 180 180 50W/12hour 54000 16200 27000
XI 200 2 120 60W/12 hour 60000 18000 30000


Appendix 2
GENERAL SPECIFICATIONS & TERMS AND CONDITIONS UNDER THE THE CAPITAL
SUBSIDY CUM REFINANCE SCHEME FOR INSTALLATION OF SOLAR OFF-GRID
(PHOTOVOLTAIC & THERMAL) AND DECENTRALISED APPLICATIONS
1. The models could be home lighting systems or inverter based systems capable of handling general AC
loads.
2. Manufacturers to provide Compact Fluorescent lamps (CFLs) of 9 W/11 W for home lighting systems.
3. The battery will be lead-acid of flooded electrolyte type, positive tubular plate and low maintenance.
4. Inverter should be of quasi sine wave/sine wave type.
5. PV module (s) shall contain crystalline silicon solar cells.
6. PV modules must be warranted for their output peak watt capacity, which should not be less than 90% at
the end of 10 years and 80% at the end of 25 years.
7. The balance of systems provided must be warranted against any manufacturing/ design/ installation defects
for a minimum period of 5 years.
Note: The manufacturer has to give an undertaking with the invoice (ANNEXURE-2) that the system offered
meets the Technical requirements/ standards contained in ANNEXURE-3 of the MNRE guidelines Ref.
5/23/2009 P&C Dated: 16.06.2010 on off grid SPV power plant systems under National Solar Mission.
APPENDIX -1 A
BOUNDARY CONDITIONS FOR SUPPORT TO OFF-GRID SOLAR PV APPLICATIONS
1. Individuals
A. All applications except 1B 1 kWp Capital Subsidy &
Interest Subsidy B. Pumps for irrigation and community
drinking water
5 kWp
2. Non-commercial entities
A. All applications except 2B 100 kWp per site Capital Subsidy &
Interest Subsidy B Mini-grids 250 kWp per site
3 Industrial/Commercial entities
A. All applications except 3 B 100 kWp per site Capital Subsidy or
Interest Subsidy B. Mini-grids for rural electrification 250 kWp per site

Scale of Capital Subsidy :
Based on benchmarking annually Rs.90/Wp With battery storage


Rs.70/Wp Without battery storage
Scale of Interest Subsidy :
Soft loan @ 5% p.a. On the amount of project cost
Less promoters contribution
Less capital subsidy amount
Note: To meet unmet community demand for electricity or in unelectrified rural areas, stand
alone rural SPV power plants with battery storage in a micro grid mode/local distribution
network, would be provided Rs.150/Wp of capital subsidy and soft loan at 5%.
APPENDIX-1B
BOUNDARY CONDITIONS FOR SUPPORT TO OFF-GRID SOLAR THERMAL APPLICATIONS
S.
No.
Solar Collector type
Capital subsidy/Collector
area (Rs / sq.m.)
1 Evacuated Tube Collectors (ETCs) 3000
2
Flat Plate Collectors (FPC) with liquid as the working fluid
3300
3 Flat Plate Collectors with air as the working fluid 2400
4 Solar collector system for direct heating applications 3600
5 Concentrator with manual tracking 2100
6 Non-imaging concentrators 3600
7 Concentrator with single axis tracking 5400
8 Concentrator with double axis tracking 6000
1. The capital subsidy/unit collector area, as given above, is based on 30% of the benchmark costs which
would be reviewed annually.
2. Besides the capital subsidy, the pattern of support could include a soft loan at 5%, as under:
a) Soft loan @ 5% interest would be available, inter alia, for balance cost which may comprise
installation charges, cost of civil work for large systems and cost of accessories (viz. insulating
pipeline, electric pump, controllers and valves, additional water tanks, blower for air heating
systems, drying trays for solar dryers, steam system, etc.), etc.
b) To meet unmet demand for electricity and thermal energy or in un electrified rural areas, Solar
thermal power plants and local distribution network, would be provided capital subsidy of 60% and
soft loan at 5%. These could be in either stand alone or co / poly generation mode.
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