Representational photo.

NEW DELHI: Stepping up efforts to gradually increase solar footprints across the country, the Centre on Tuesday approved two schemes - one to promote use of solar power among farmers and the second to give impetus to its ongoing grid-connected rooftop solar programme. Both the schemes together will get the central financial support of over Rs 46,000 crore by 2022.

The move on grid-connected rooftop will help India achieve its cumulative capacity of 40,000 MW of solar power from rooftop projects by 2022. It accounts for 40% of the country’s 2022 target of 100 GW of power from solar.

The rooftop programme will be implemented with total financial support of Rs 11,814 crore. Under the scheme, group housing societies or resident welfare associations will be eligible to get financial support to install rooftop solar projects.

Both the schemes were approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi .

The one for farmers - called KUSUM (Kisan Urja Suraksha Evam Utthan Mahaabhiyan) - has three components which together aim to add a solar capacity of 25,750 MW by 2022. The total central financial support provided under the scheme would be Rs 34,422 crore.

Its components include 10,000 MW of ‘decentralized ground mounted’ grid-connected renewable power plants; installation of 17.50 lakh standalone solar powered agriculture pumps and solarisation of 10 lakh grid-connected solar powered agriculture pumps.

Under KUSUM, an individual farmer or group of farmers (cooperatives or panchayats or farmer producer organisations) can set up solar power plants of 500 KW to 2 MW capacity on their barren or cultivable lands.

“The power generated will be purchased by the DISCOMs at feed in tariffs determined by respective SERC. The scheme will open a stable and continuous source of income to the rural land owners. Performance Based Incentives of Rs 0.40 per unit for five years will be provided to DISCOMs,” said a government statement on the CCEA’s decision.

The scheme also has provisions to support individual farmers to install standalone solar pumps of capacity up to 7.5 HP. Similarly, individual farmers will also get support to solarise pumps of capacity up to 7.5 HP. The Solar PV capacity up to two times of pump capacity in kW will be allowed under the scheme.

“The farmer will be able to use the generated energy to meet the irrigation needs and the excess available energy will be sold to DISCOM. This will help to create an avenue for extra income to the farmers, and for the States to meet their RPO (Renewable Purchase Obligation) targets,” said the statement.

For solar pumps, the central financial assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower, will be provided to the farmers. The state government will give a subsidy of 30% while the remaining 40% will be provided by the farmer.

“Bank finance may be made available for meeting 30% of the cost. The remaining 10% will be provided by the farmer,” said the statement.

Farmers in north-eastern states, Sikkim, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman & Nicobar Islands will be provided higher CFA of 50% of the benchmark cost or the tender cost, whichever is lower.

Noting that the scheme has substantial environmental impact in terms of savings of CO2 emissions, the government claimed that all three components of the KUSUM together may result in saving of about 27 million tonnes of CO2 emission per annum.

Besides, the standalone solar pumps under the scheme may result in saving of 1.2 billion litres of diesel per annum and associated savings in the foreign exchange due to reduction of import of crude oil.

As far as rooftop scheme is concerned, the CFA under residential category will be provided for 4000 MW capacity. It will be provided on the basis of benchmark cost or tender cost, which is lower. This support will, however, not be available for other categories — institutional, educational, social, government, commercial and industrial. The DISCOMs and its local offices will be the nodal points for implementation of the programme.

