The key objectives of the Solar programme are
a. To promote subsidy for grid connected rooftop solar programme RTS in all consumer segments, viz., residential, institutional, social, Govt., commercial, industrial etc.
b. To bring DISCOMs at forefront as key drivers for rapid deployment of RTS.
c. To create awareness, capacity building, human resource development, etc.
d. To promote sustainable business models
. e. To create additional RTS capacity of 38000 MW in the country by 31.12.2022
out of which a capacity of 4000 MW in residential sector with Central Financial Assistance and 34000 MW in other sectors
(i.e., Social and Government and educational andPSUs, Statutory /Autonomous bodies, and Private Commercial
as well as, Industrial Sectors etc.) by suitably incentivizing DISCOMs f. To promote domestic manufacturing of solar cells and module..
COMPONENTS
Component A: Setting up of 4000 MW of grid connected rooftop solar projects in residential sector with Central Financial Assistance (CFA)
: In most of the States/UTs the residential sector enjoys benefit of subsidized electricity; therefore, beneficiaries of this sector would not be inclined to adopt rooftop solar until some capital CFA mechanism is put in place to reduce the cost of rooftop solar.
Further, considering the fact that lower consumption slab pays lower tariff and vice versa, the CFA for RTS is also required to be restructured.
Component B: Incentives to Electricity Distribution Companies (DISCOMs) based on achievement towards initial 18000 MW of grid connected rooftop solar plants 5.2.1
Since DISCOMs are required to incur additional expenditure for implementation of programme and in terms of additional man-power, creating infrastructure, capacity building, awareness, etc.,
these will be compensated by providing performance linked incentives. The incentives may be provided for each MWp capacity of solar rooftop, added by them in their distribution area over and above 10% of base capacity
installed at the end of previous year. However, such incentives will not be applicable with retrospective effect.
These incentives will be provided to enable DISCOMs to create an enabling ecosystem for expeditious implementation of RTS projects in their area.
| S. No | Parameter | Incentive to be Provided |
| 1 | For installed capacity achieved above 10 % and up to 15 % over and above of the install ed base capacity* within a financial year | 5% of the applicable cost** for capacit y achieved above 10 % of the installed base capacity |
| 2 | For installed capacity achieved beyond 15 % over and above of the installed base capa city* within one financial year | 5% of the applicable cost** for capacit y achieved above 10 % and up to 15 % of the installed base capacity PLUS 10 % of the applicable cost** for capacity achieved beyond 15 % of the installed base capacity |
The incentive mechanism has been illustrated in the following table
| Discoms | Installed base capacity (MW) | Achievement under programme (MW) | Percentage Achievement of installed base capacity (%) | Capacity eligible for 5% incentives (MW) | Capacity eligible for 10% incentives (MW) |
| A | 100 MW | 10 MW | 10% | Nil | Nil |
| B | 100 MW | 12 MW | 12% | 2MW | NIL |
| C | 100 MW | 20 MW | 20% | 5 MW | 5 MW |
| D | 100 MW | 30 MW | 30% | 5 MW | 15 MW |
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