MNRE brings back 30% subsidy for Solar Rooftops but excludes Commercial and Industrial establishments

In a surprising move, MNRE has brought back the 30% subsidy on Solar Rooftops but has excluded Industrial and Commercial Establishments.

CFA Notice Grid Connected Rooftop Notice 19/11/2015

Subject: Installation  of  Grid  Connected          Solar  Rooftop  Power  Plants  – Central Financial Assistance (CFA) of MNRE – regarding.

The Ministry is implementing a ‘Grid Connected Rooftop and  Small  Solar  Power Plants Programme’ (vide no. 30/11/2012-13/NSM dated 25th June, 2014) in which the solar rooftop plants from 1.0 kWp to 500 kWp capacities are set up. The Ministry  has set a target for installation of 100 GW solar power of which 40 GW is to come from  grid connected solar rooftop plants.

  1. A CFA of the 15% of the benchmark cost was announced vide notification no. 5/34/2013-14/RT dated 03.08.2015 for various categories i.e. residential , institutional, Government and social Now, CFA pattern on the grid connected solar rooftop systems is proposed to be retained as per existing ongoing scheme under implementation vide no 30/ 11/2012-13/NSM  dated 26th June 2014 with following modifications:
  • No CFA will be provided for commercial and industrial establishments in the private sector as they are eligible for other benefits such as accelerated depreciation , custom duty concessions, excise duty exemptions and tax Industrial and commercial electricity tariff for them is usually high and hence these sectors do not need any Government CFA to make sotar attractive . Further, whenever they go to the State Regulators for project specific tariff , the tariff depends on whether CFA is availed or not, and the tariff is decided accordingly. Hence, CFA will give no net benefit to the commercial and industrial establishments  in the private sector.
  • For all other sectors, the CFA pattern will remain same that is, 30% of benchmark cost for general category States/UTs and 70% of benchmark cost for special category States e., North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep , Andaman & Nicobar Islands.
  • The Domestic Content Requirement (for modules made in India) will be applicable only for those installations where CFA will be provided. No Domestic Content Requirement will be applicable to the commercial and industrial establishments in the  private sector where CFA is not applicable .
  1. The following  benefits are also available for  installation of Grid Connected   Rooftop and Small Solar Power Plants in the country besides, CFA of MNRE:

>-  Accelerated depreciation benefits for industrial and commercial buildings

>-  Custom Duty Concessions and Excise Duty Exemptions

>-   10 years tax holiday

>-   Provision of bank loans as a part of home loan/ home improvement loan

>-   Loans for system aggregators from  Indian Renewable Energy Development Agency at concessional interest rate (9.9% to 10.75%)

>-   Loans available  upto Rs.  15 crore for  renewable energy  projects and upto  Rs.  10 lakhs for individual loans under Priority Sector Lending .

  1. The CFA will be provided through State Nodal Agencies, State Departments, Solar Energy Corporation of India (SECI), Indian Renewable Energy Development Agency (IREDA), Empanelled Government Agencies/DISCOMs, PSUs of Central and State Government and participating Banks.
  1. .  This  will  supersede  the  earlier   issued  Notification    5/34/2013-14/RT   dated 03.08 .2015.

[Dr. Arun K Tripathi]

Sr. Director Telefax:  011-24363035

  1. All Central Ministries and Departments
  1. Department of Public Enterprises (OPE), Block 14, CGO Complex, New Delhi
  2. Principal Director of Audit, Scientific Audit-II, DGACR Building, P. Estate, Delhi
  3. Principal Secretaries/Secretaries  (Energy Departments) all States /UTs
  4. All State/UT Nodal Agencies (by name)
  5. All Municipal Commissioners
  6. CMD, IREDA, 1st floor, East Court, Indian Habitat Centre , Lodhi Road: New Delhi
  7. Director General,  Bureau of  Indian Standards,  Manak  Bhawan,  9,  Bahadur  Shah Zafar Marg, New Delhi
  8. G., National Institute of Solar Energy, Gwal Pahari, Gurgaon, Haryana
  9. MD, Solar Energy  Corporation  of  India,  D-3, A  Wing, 1st  Floor,  Religare  Building, District Centre , Saket, New Delhi-110017
  10. National Housing Bank and all nationalized Banks
  11. To be published on website of MNRE, SECI, !REDA, NISE and all


About Ritesh Pothan

Ritesh Pothan, is an accomplished speaker and visionary in the Solar Energy space in India. Ritesh is from an Engineering Background with a Master’s Degree in Technology and had spent more than a decade as the Infrastructure Head for a public limited company with the last 9 years dedicated to Solar and Renewable Energy. He also runs the 2 largest India focused renewable energy groups on LinkedIn - Solar - India and Renewables - India
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