MNRE Offers Clarification on Phase II of Rooftop Solar Programme

MNRE which has been implementing Phase II of the rooftop solar programme has issued a new clarification regarding the CFA and empanelment of the bidders.

The Ministry of New and Renewable Energy (MNRE) which has been implementing Phase II of the grid-connected rooftop solar programme has issued a new clarification regarding the CFA and empanelment of the bidders.

The MNRE has informed that under the programme it offers Central Financial Assistance (CFA) only for the residential sector is provided at 40 percent of the benchmark cost or the cost discovered through the transparent bidding by the implementing agency, whichever is lower for rooftop systems up to 3 kW capacity. While for system capacity beyond 3 kW and up to 10 kW CFA is provided at 20 percent of benchmark cost or the cost discovered through transparent bidding.

For Group Housing Societies/Residential Welfare Associations (GHS/RWA), CFA will be limited to 20 percent for RTS plants for supply of power to common facilities. However, the capacity eligible for CF A for GHS/RWA will be limited to 10 kW per house with maximum total capacity up to 500 kWp, inclusive of RTS put in individual houses in the GHS/RWA.

In March last year, The President of India had accorded for phase-II of the rooftop solar programme for achieving a cumulative capacity of 40 GW from Rooftop Solar (RTS) projects by 2022 with the total central financial support of Rs 11,814 crore.

In Phase-II, it has been decided to implement the programme by making the Discoms and its local offices as the nodal points for implementation of the programme. Discoms will play a key role in the expansion of rooftop solar as they are having direct contact with the end-user and they provide approval for installation, manage the distribution network and also have billing interface with rooftop owner.

The notification further added that as per para 5.1.6 The implementing agency i.e. Discoms or its authorised agency shall invite Expression of Interest (EoI) for empanelment of agencies for supply, installation, testing & commissioning of RTS system in residential premises.

To ensure quality and post-installation services only manufacturers of solar panels and system integrators fulfilling pre-determined technical and financial criteria would be allowed to participate in the bidding process. The selected bidders shall follow the quality control orders and standards for all components of the RTS system and its installation procedure, if any, issued by MNRE from time to time.

All the bidders within the price bracket of (Ll + X% of LI) shall be empanelled. The digit “X” may be decided by the agency and should be clearly indicated while inviting Expression of Interest. The digit “X” shall not be more than 25. Further, if the total number of empanelled agencies are found to be less than 5 in the acceptable band, then the DISCOM may also include those agencies who fall in LI +(X +5)% of LI, provided they agree to match LI.

“In this regard, it is clarified that all the bidders within the price bracket of (Ll + X% of LI) or LI +(X +5)% of LI, as the case may be, shall be empanelled, provided they agree to match LI. That means all empanelled bidders will match LI as explained in para 5.1.6 of the guidelines. All the empanelled bidders should provide the services to the consumers at LI rate which they have agreed,” the ministry clarified.