ummary of JNNSM Guidelines for off-grid, Rooftop, and other decentralized

solar systems:
The National Solar Mission aims to provide an enabling environment for
solar technology penetration in India.
For financial assistance, the government has declared that in projects
availing this scheme, in the debt and equity mixture, the promoters equity
contribution must be at least 20%.
Incentives announced:
For off-grid and decentralized solar PV/CSP installations of a maximum
capacity of 100 Wp per site, and for mini-grids for remote electrification with a
maximum capacity of up to 250 kW:
Subsidy, which is calculated on the basis of a cost benchmarked by MNRE,
is notionally equal to 30% of benchmarked cost of solar power systems. For
2010 it is fixed at Rs. 90 per Wp with battery storage, and at around Rs. 70
per Wp without battery storage.
The benchmarked costs (of standard solar systems) will be changed every
year.
Exceptions:
o Solar PV plants in micro-grid mode/local distribution network, to meet unmet
community demand for power in unelectrified rural areas, will be provided a
capital subsidy of Rs 150/ Wp In special category states, viz. NE, Sikkim,
Himachal Pradesh, and Uttarakhand, a capital subsidy of up to 90% of
installation cost can potentially be availed.
o Moreover, in difficult-to-reach areas such as Lakshadweep, Andaman and
Nicobar Islands, and districts on Indias borders, the subsidy availed will also
be 90% for solar PV installations, but 60% for solar thermal installations.
For Grid connected projects at least 100 kW and up to 2 MW, connected to
HT level [below 33 kV] of distribution network, subsidy pattern is different:
A GBI is payable to the project developer. Its value is the difference

between the tariff determined by the CERC (17.9 for solar PV and Rs 15.4 for
solar thermal) and the base rate, which is equal to Rs 5.5 per kWh for the
financial year of 2010 to 2011, and escalates @ 3% every year.
Other incentives: Rs. 3000 per sq. meter for Evacuated Tube collectors,
3300 for Flat plate collectors with liquid as the working fluid, 2400 for Flat plate
collectors with air as the working fluid, 3600 for Solar collector system for
direct heating application, 2100 for Concentrator with manual tracking, 3600
for non-imaging concentrators, 5400 for Concentrator with single axis tracking,
and Rs 6000 per sq. meter for Concentrator with double axis tracking.
In addition to the above 3 different forms of incentives, the debt portion of
investment can be financed by a soft loan at 5% interest rate, to be availed
from the IREDA.
Details:
The Jawaharlal Nehru National Solar Mission, also known as simply National
Solar Mission, is a major initiative of the Government of India and State
Governments to promote ecologically sustainable growth while addressing
Indias energy security challenge. The immediate aim of the Mission is, as
stated by the government, to focus on setting up an enabling environment for
solar technology penetration in the country both at a centralized and
decentralized level. The first phase (up to 2013) will focus on capturing of the
low hanging options in solar thermal; on promoting off-grid systems to serve
populations without access to commercial energy and modest capacity
addition in grid-based systems. In the second phase, after taking into account
the experience of the initial years, capacity will be aggressively ramped up to
create conditions for up scaled and competitive solar energy penetration in the
country. On the 17th of June, the JNNSMs guidelines for Off-grid, Rooftop,
and all other small solar applications were announced by the Ministry of New
and Renewable Energy (MNRE), and the guidelines for its other applications
will be announced later. The MNREs deployment targets are:

Envisaged deployment across the application segments:

S. No. Application segment Target
Phase 1 (2010-13) Phase 2 (2013-17) Phase 3 (2017-22)
1 Solar Thermal collectors 7 million sq. meters 15 million sq. meters 20 million
sq. meters
2 Off grid solar applications 200 MW 1000 MW 2000 MW
3 Grid Power, including Rooftop and small plants 1,000 MW 4,000-10,000 MW
20,000 MW
To achieve these ends, the JNNSMs stated objectives are to create
awareness, promote solar PV and solar CSP applications for meeting phase I
targets, support industry players, to create the paradigm shift which is
necessary for commoditization of off-grid solar applications etc. The
JNNSMs announced small solar scheme has 2 parts: off-grid and grid
connected (minimum of 100 kW and up to 2 MW, connected to HT level [below
33 kV] of distribution network).
Off-grid/Decentralized Solar
The scope of the scheme has been defined as covering only installations of a
maximum capacity of 100 Wp per site, for off-grid and decentralized solar
CSP applications to meet requirements like lighting, electricity/power,
heating/cooling energy requirements. However, for mini-grids for remote
electrification, applications up to a maximum capacity of 250 kW will be
supported.
Incentives offered by the JNNSM
In the domain of manufacturing, to promote technology up-gradation and
facility expansion, soft loans, including a working capital component, will be
made available by the IREDA to small manufacturers of solar thermal systems
and balance of systems manufacturers for solar PV systems (excluding battery

manufacturers). However, the JNNSM is designed mainly to address the need

for incentives of project developers and installers who deal with solar
applications:
1. Standalone Solar PV and Solar CSP power systems
Funding will be on the basis of submission of a project report which would
include client details, technical and financial details, O&M, and monitoring
arrangements. The project will be funded by a mixture of debt and equity, and
the promoters equity contribution must be at least 20%. The subsidy will be
dispensed as a combination of 30% subsidy and/or soft loan bearing 5%
interest. Note: Subsidy percentage is calculated not as per real cost, but cost
benchmarked by MNRE, whereby the value of the subsidy, which is equal to
30% of cost of systems is estimated at Rs. 90 per Wp (with battery storage),
and at around Rs. 70 per Wp (without battery storage). The benchmarked cost
of standard solar systems will be changed every year.
Standalone SPV plants with battery storage in micro-grid mode/local
distribution network, to meet unmet community demand for power in
unelectrified rural areas, will be provided a capital subsidy of Rs 150/ Wp and
soft loans at 5% interest rate.
However, in special category states, viz. NE, Sikkim, Himachal Pradesh, and
Uttarakhand, a capital subsidy of 90% will be availed.
Moreover, in difficult-to-reach areas such as Lakshadweep, Andaman and
Nicobar Islands, and districts on Indias borders, the subsidy availed will also
be 90% for solar PV installations, but only 60% for solar thermal installations.
100% of real cost could be subsidized by the government in case of novel and
innovative application of solar systems.
2. Other small solar systems
S. No. Solar Collector Type Capital Subsidy/Collector area (Rs/sq. meter)
1 Evacuated Tube collectors 3000

2 Flat plate collectors with liquid as the working fluid 3300

3 Flat plate collectors with air as the working fluid 2400
4 Solar collector system for direct heating application 3600
5 Concentrator with manual tracking 2100
6 Non-imaging concentrators 3600
7 Concentrator with single axis tracking 5400
8 Concentrator with double axis tracking 6000
In such projects, capital subsidy will be calculated by multiplying the collector
area with the relevant coefficients from the list shown above. These are also
based on 30% of benchmarked costs of projects of such types. Apart from
this, a soft loan would be available for balance cost which comprises
installation charges, cost of civil work for large systems, costs of accessories
(viz. insulating pipeline, electric pump, controllers and valves, additional water
tanks, blower for heating systems, drying trays for solar dryers, steam system
etc.) In remote rural areas, and all such unelectrified areas, the capital subsidy
will be doubled i.e. 60% of benchmarked costs.
Agencies involved in the schemes Implementation
The schemes implementation will be undertaken in an ecosystem consisting
of various channel partners, which include:
1) Renewable Energy Service Providing Companies RESCOs (installers of
RE systems) may tie up with FIs for accessing financial support.
2) Financial Aggregators: Financial Institutions such as microfinance
institutions involved in customer finance, having established base of
operations in rural and urban areas, and outreach through self-help groups
etc. These typically access interest subsidy through refinance ability, as well
as credit linked capital subsidy (on behalf of their borrowers) from IREDA.
3) FIs (Financial Integrators) integrate different sources of finance including

carbon finance (CDMs), government assistance, and other sources of funds,

to design financial instruments and products, making them affordable to
manufacturers and RESCOs, with whom they'll tie up.
4) System integrators provide various RE systems and services to clients,
such as design, supply, integration, and installation, O&M etc. They may tie up
with FIs for accessing financial support.
5) Program administrators such as state, government ministries and
departments, SNAs etc.
The various channel partners will be selected on the basis of net
worth/turnover, credit rating, track record, technical capability for undertaking
projects (site selection, feasibility study, design/value engineering, cost
optimization, time scheduling, procurement, installation, commissioning, and
O&M activities, and tie-ups with equipment providers in general. Young
entrepreneurs will be favored. - See more at:
http://www.eai.in/club/users/manohar/blogs/66#sthash.aIVLtahf.dpuf