Solar energy is one of the cleanest renewable sources of power, and in a sunny state like Rajasthan, it has huge potential. As more people and businesses turn to solar power, the government is helping with various policies and subsidies to make it affordable.
The state government has introduced several policies and subsidies to attract investors and promote the development of solar projects.
In accordance with Prime Minister Modi's declaration at the COP26 climate summit in Glasgow, the Indian government has developed a "Mission 500GW" strategy to guarantee that India can increase its use of renewable energy (RE) to 500 GW by 2030. To meet India's goals, the Ministry of Power, and the Ministry of New & Renewable Energy (MNRE) are taking the initiative.
The ministry in charge of new and renewable energy in India is MNRE, which is already promoting renewable energy across the country. To encourage solar or distributed renewable energy, MNRE has already launched several programs around India.
The Indian government, as well as the Rajasthan state government, have introduced several policies to boost solar power use. The Rajasthan Solar Energy Policy 2019 is one such policy that encourages solar power generation. It focuses on increasing the share of solar energy in the state’s total electricity supply.
At the national level, policies like the Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM) aim to promote solar power in rural areas, especially for farmers. Under this scheme, farmers can set up solar pumps for irrigation or even sell solar power to the grid.
The goal of the Residential Rooftop Solar Subsidy Scheme, often referred to as RTS Phase-II of MNRE, is to have 40,000 MW of cumulative capacity from Rooftop Solar (RTS) projects by 2022.
Residential users for projects up to 10 KW are eligible to get benefits from the Subsidy scheme.
The applicable subsidy is 40% for the first 3 kW of solar project capacity and 20% for additional solar project capacity up to 10 kW.
Direct Beneficiary Transfer, or DBT, is being implemented by MNRE for this program by April 2022.
To streamline the Rooftop Solar Subsidy in the Residential Sector, the Ministry of New & Renewable Energy (MNRE) launched the DBT (Direct Beneficiary Transfer) Scheme.
Through the national portal, a beneficiary or consumer who wishes to install a solar project at his home can apply and have the system installed by the preferred vendor, after which it will be installed in accordance with the scheme's rules and procedures.
After completing all the necessary paperwork in accordance with the plan, the beneficiary will get the subsidy amount straight into his account within 30 days.
The MNRE introduced the PM-KUSUM program in 2019 to encourage the development of off-grid solar pumps in rural regions and lessen reliance on the grid in places that are linked to it.
Enabling farmers to install solar power producing capacity on their arid fields and sell it to the grid is the scheme's goal.
The PM-KUSUM scheme aims to increase farmers' incomes and de-dieselize the agricultural industry.
The scheme provides a central government subsidy of up to 30% or 50% of the total cost for both installing independent solar pumps and solarizing agricultural pumps that are already linked to the grid.
Under the Scheme, farmers can develop grid-connected solar power plants up to 2MW on their fallow or barren land and sell electricity to the local DISCOM at a rate set by the state regulator.
In the 2020–21 government budget, the program's scope was increased to include 20 lakh farmers receiving aid for installing freestanding solar pumps and an additional 15 lakh farmers receiving support for solarizing their grid-connected pump sets.
Solar power projects can be installed anywhere in the nation, those that are dispersed throughout the country result in higher transmission losses and project costs per megawatt.
Smaller-capacity individual projects come with high costs for site preparation, constructing separate transmission lines to the closest substation, acquiring water, and building other required infrastructure.
The project is ultimately delayed since it takes longer for project developers to obtain land, obtain various approvals and permissions, etc.
To address these issues, the "Development of Solar Parks and Ultra-Mega Solar Power Projects" plan was introduced in December 2014 with the goal of assisting solar project developers in quickly establishing projects.
The National Wind-Solar Hybrid Policy, issued on 14th May 2018, promotes large grid-connected wind-solar PV hybrid systems for optimal use of resources, land, and transmission infrastructure while encouraging innovative technologies.
It allows integration of fixed-speed wind turbines at the AC output bus or variable-speed turbines at the DC bus of the converter.
A plant qualifies as a hybrid if one resource has at least 25% of the capacity of the other.
Existing wind or solar projects can add solar PV or wind turbines to gain hybrid benefits.
Battery storage is encouraged to reduce power variability, increase energy output, and ensure firm power availability.
The Atal Jyoti Yojana (AJAY) was started by the Ministry of New and Renewable Energy (MNRE) to install solar street lights in underlit areas. It falls within the Ministry of New and Renewable Energy's (MNRE) off-grid and decentralized solar application initiative.
Phase-I was put into effect between September 2016 and March 2018. The implementation of Phase-II was taking place in 2018–19 and 2019–20.
The International Solar Alliance (ISA), a treaty-based worldwide intergovernmental organization, seeks to raise the more than USD 1000 billion in investment required by 2030 for the widespread use of solar energy.
The goal of ISA, which was founded on November 30, 2015, by French President Francois Hollande and Prime Minister Narendra Modi, is to lower the cost of solar power generation and increase solar energy scale by combining demand for solar finance, technologies, innovation, R&D, and capacity building.
The One Sun, One World, One Grid (OSOWOG) initiative, proposed by Prime Minister Narendra Modi in 2018 and jointly launched with the UK as the Green Grids Initiative (GGI) during COP26 in 2021, aims to create a globally interconnected solar power grid.
The initiative envisions harnessing solar energy from regions with daylight and transmitting it to areas in need, ensuring a continuous and balanced energy supply worldwide. OSOWOG will be implemented in three phases, starting with regional interconnections in South Asia, the Middle East, and Africa, eventually achieving global interconnection by 2050 with a target of 2,600 GW capacity.
India, as a key player in the International Solar Alliance, aims to mobilize USD 1 trillion in funding by 2030 to assist developing nations in expanding solar grids.
The initiative supports the global transition to clean energy, cross-border energy distribution, and electric-centric consumption while addressing climate change and energy security challenges.
With its renewable energy capacity ranked fourth globally, India sees OSOWOG as a path to sustainable development, reducing reliance on fossil fuels, combating pollution, and solidifying its leadership in renewable energy on the global stage.
To encourage solar energy in India, the Government of India and State Governments launched the Jawaharlal Nehru National Solar Mission (JNNSM), often known as the National Solar Mission.
The JNNSM, which was first introduced in January 2010 and has since undergone two revisions, now aims to achieve 100 GW of solar PV.
By establishing the legal framework for its widespread use, JNNSM seeks to position India as a leader in solar energy worldwide.
The National Institute of Solar Energy (NISE), an institute under the Ministry of New and Renewable Energy (MNRE), serves as the apex national center for solar energy research and technology development, located at Gwal Pahari, Gurgaon.
As part of MNRE's skill development initiatives, NISE is the nodal agency for implementing the Suryamitra Skill Development Programme (SSDP).
Their 600-hour residential program is designed to train ITI or diploma holders (in disciplines like electrical, electronics, civil, mechanical, etc.) for employment in solar energy project installation, operation, and maintenance, as well as to promote entrepreneurship in the sector.
Conclusion
Solar energy stands as a crucial in India’s renewable energy goals, with policies, subsidies, and initiatives from both the central and state governments making it increasingly accessible and affordable.
Programs like the PM-KUSUM scheme, rooftop solar subsidies, and the National Solar Mission are accelerating the transition to clean energy while empowering rural communities and businesses alike.
As solar energy adoption grows, it also addresses critical challenges like energy security, pollution reduction, and sustainable development.
Rays Power Experts Limited plays a significant role in helping businesses take full advantage of these government policies and subsidies.
By providing end-to-end solar energy solutions, they guide companies through the complexities of policy compliance, subsidy applications, and project implementation.
With expertise in setting up solar plants, hybrid systems, and large-scale projects, Rays Power Experts enables businesses to transition seamlessly to solar energy while maximizing financial and environmental benefits.
This proactive approach not only fosters sustainability but also positions businesses to lead in India’s renewable energy revolution.