Procedure to get MNRE Subsidy for Off Grid Solar Systems in India

India’s Solar Potential

India has a large potential for generating solar power using un-utilized rooftop space and wastelands around buildings. Solar power generated by individual households, industrial buildings and commercial buildings can be used to fulfill the requirement of the building occupants there by consuming the power where it is generated, this reduces the large distribution losses that India currently faces today, It is estimated that we loose around 45% of generated electricity in distribution

The price of power generated from solar plants installed today is at par with grid supplied power for residential customers or lower in case of commercial customers, cost of solar power is declining while the cost of fossil fuel based electricity is increasing every day

The cost of generating solar power today is a little higher than the tariff charged by state owned distributed companies(DISCOMS) in most cases (other than commercial). With the capital subsidy, it is possible to generate power at ₹6.50 per unit (without battery backup) at ₹9.50 (with battery backup)

Solar power is cheaper than the diesel gen-set based electricity(₹21.00 per unit) even without capital subsidy, with capital subsidy it could be cheaper than the cost at which most DISCOMS are distributing power to their commercial customers.

Due to these reasons MNRE intends to popularize the use of solar energy under JNNSM Phase II

Eligibility

  • Individuals, Societies, NGOs, Private and Public sector companies, Industries every one is eligible for MNRE subsidy scheme

Subsidy Percentage

  • 30% Subsidy for off-grid solar systems up-to a maximum capacity of 500KWp

Applications
This scheme applies to following residential, commercial and industrial applications

  • Supplemental lighting
  • Industrial Heating
  • Home Lighting
  • Mini Grids

 Implementing Agencies

  • State Nodal Agencies(State Renewable Energy Development Agencies)
  • MNRE Approved Channel Partners
  • Solar Energy Corporation of India

Procedure 

  • Submit a project report with technical and financial details, operations and maintenance plan along with system monitoring and reporting details to MNRE via district head of your state nodal agency
  • MNRE evaluates your project on technical and financial points
  • After your project is approved by MNRE, Open tenders are invited by your state nodal agency and a channel partner will be selected from open bidding process
  • Channel Partner completes the installation process
  • SNA inspects your installation to ensure that only MNRE approved components are installed
  • Subsidy amount is released to channel partner directly from MNRE
  • You will be responsible for payment of 70% of the system cost, if you chose to finance your solar plant, you may work with you bank to procure financing 70% of the system cost

Practical Issues
Obtaining approvals form MNRE is a painfully slow process and it usually takes any where between 6 months to an year to get approval from MNRECreating a detailed project report(DPR) to submit to MNRE is usually a costly affair

Several so called solar constants are charging huge amounts to create those project reports

Solution
Most channel partners have dedicated pre-approved quota on an yearly basis, by working with a channel partner, you will be able bypass lengthy MNRE approval procedures and channel partner will be responsible for getting the project approved and procuring subsidy as well implementing the project as per MNRE guidelines

You should directly approach an MNRE approved channel partner with your proposal and they will be able to provide you with a free DRP with all the technical and financial information based on the solar plant capacity for your needs

You could submit that DPR to your bank to obtain financing, while channel partner works with your SNA(state nodal agency) to get your project approved by MNRE

Once project is approved by MNRE, your bank will fund the balance portion of the system cost (70%) and channel partner gets backend subsidy(30%) from MNRE

Solar Plant Capacity

Visit our Solar Plan Configurator to configure your solar plant size based on your actual usage

Important Links

We are an authorized distributor of MNRE approved channel partner and we have helped several customers to become grid independent

We take care of all the necessary paperwork and we will work with your SNA to get the necessary approvals from MNRE, We will provide all necessary paper work to your bank

Please contact us at +91 9550004871 or email us at info@macsolartech.com to get the process started

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One thought on “Procedure to get MNRE Subsidy for Off Grid Solar Systems in India

  1. New NABARD guidelines to get Subsidy on Solar PV Systems and Solar Water Pumps

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