Introduction – Subsidy For Solar Parks
India’s renewable energy vision is rapidly expanding, and solar parks have become the backbone of this transition. To reduce project costs, address land acquisition challenges, and accelerate clean energy adoption, the Government of India introduced the Development of Solar Parks and Ultra Mega Solar Power Projects scheme. Under this initiative, developers and state agencies can access a subsidy for solar parks to make large-scale solar projects feasible.
However, while the financial incentives are attractive, the application process, DPR preparation, CFA compliance, and state coordination can be overwhelming. That is where Finraja Consultancy Private Limited comes in — guiding you through every step as your trusted subsidy consultant.
What is the Subsidy for Solar Parks?
The solar park subsidy is a financial support mechanism provided by the Ministry of New & Renewable Energy (MNRE) to encourage large-scale solar installations. Instead of individual developers struggling with approvals, land use, and grid connectivity, solar parks offer a plug-and-play model where land, infrastructure, and transmission systems are pre-arranged.
The central government provides Central Financial Assistance (CFA) to support these parks, ensuring both developers and state agencies benefit from reduced project risks and costs.
Solar Parks Scheme India – An Overview
The solar parks scheme in India was launched on 12 December 2014 by MNRE. Originally targeting 20,000 MW of capacity, it was later scaled up to 40,000 MW by FY 2021-22. The scheme has since been extended to March 2026 to accommodate ongoing projects and upcoming ultra-mega solar power initiatives.
Key Highlights:
- Central support for land acquisition, transmission systems, and basic infrastructure.
- Projects of 500 MW and above are eligible; smaller parks allowed in difficult terrains.
- Implementation is done in collaboration with State Governments, CPSUs, and private developers.
- A dedicated Solar Power Park Developer (SPPD) acts as the implementing agency.
Development of Solar Parks – Why It Matters
The development of solar parks helps overcome key challenges like scattered projects, high transmission losses, and long delays in land approvals. By consolidating projects, developers benefit from:
- Pre-approved land parcels
- Integrated transmission networks
- Shared infrastructure (roads, water, communication)
- Faster commissioning timelines
For investors and developers, this translates into lower risks and better project viability.
CFA for Solar Parks – The Financial Assistance Pattern
The government supports solar parks through a well-defined CFA pattern:
- ₹25 lakh per solar park for preparation of Detailed Project Report (DPR).
- ₹20 lakh per MW or 30% of the project cost (whichever is lower) on milestone completion.
- CFA is split 60:40:
- ₹12 lakh per MW → given to the SPPD for internal infrastructure.
- ₹8 lakh per MW → allocated to the Central or State Transmission Utility (CTU/STU) for external transmission systems.
For businesses, this means significant cost savings, but only if applications are properly structured, DPRs meet MNRE standards, and all milestones are met.
This is where Finraja Consultancy ensures nothing goes wrong — preparing compliant DPRs, coordinating with state agencies, and securing your financial support seamlessly.
DPR for Solar Parks (Detailed Project Report)
A DPR for solar parks is a critical document that outlines technical, financial, and environmental details of the project. Without a robust DPR, subsidy applications are often delayed or rejected.
Typical DPR components:
- Land and site survey details
- Capacity design & layout planning
- Cost estimates for infrastructure
- Grid connectivity framework
- Implementation schedule
Our team at Finraja Consultancy specializes in preparing bankable DPRs that meet MNRE and state-level requirements — saving clients from costly errors.
Role of the Solar Power Park Developer (SPPD)
The SPPD is the nodal implementing agency responsible for developing and managing the solar park. It may be a state agency, CPSU, or private entity nominated by the government.
SPPD responsibilities include:
- Acquiring land and securing clearances
- Developing basic infrastructure
- Coordinating with CTU/STU for transmission facilities
- Ensuring compliance with MNRE’s CFA guidelines
As subsidy consultants, Finraja Consultancy works alongside SPPDs to ensure the process is smooth and subsidy release happens on time.
Ultra Mega Solar Power Projects – Scaling India’s Green Vision
Under this scheme, the government also promotes ultra mega solar power projects (500 MW and above). These large parks significantly reduce the per-MW project cost and contribute to India’s ambitious renewable targets.
By participating in these projects with the right subsidy support, businesses can secure early-mover advantages in India’s green energy sector.
Why Work with Finraja Consultancy?
While the solar park subsidy is lucrative, the process is complex, paperwork-heavy, and time-sensitive. Many businesses lose out on benefits due to:
- Incorrect DPR preparation
- Missed deadlines
- Misinterpretation of CFA rules
- Lack of coordination with state utilities
At Finraja Consultancy Private Limited, we:
- Prepare MNRE-compliant DPRs.
- Manage subsidy documentation from start to finish.
- Liaise with SPPDs, CTUs/STUs, and state departments.
- Ensure timely CFA disbursal to reduce financial burden.
- Provide end-to-end handholding until subsidy release.
Our goal is simple: you focus on your project, while we secure your subsidy.
If you are planning to set up a solar park or participate in an ultra-mega solar project, do not let the subsidy slip away.
Contact Finraja Consultancy Private Limited today to maximize your subsidy benefits under MNRE’s solar parks scheme. Our team will handle the complexities so you can focus on building sustainable energy solutions.
Conclusion
The subsidy for solar parks under MNRE’s scheme is a game-changer for India’s renewable energy ecosystem. With structured CFA patterns, DPR support, and large-scale infrastructure development, solar parks make clean energy more viable than ever.
But securing these subsidies requires expert guidance — and that’s where Finraja Consultancy steps in as your trusted partner. By leveraging our expertise, you can unlock maximum benefits while avoiding delays, rejections, or compliance issues.
Your solar project deserves the right support — let Finraja Consultancy ensure you get it.
Call us now: +91 9373114747 or visit: finraja.com/contact for quick assistance.
