Government Approves Additional 118-MWp Off-grid Solar PV Capacity by 2020

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister has given its approval for implementation of Phase-Ill of off-grid and decentralised solar photovoltaic (PV) application programme to achieve additional 118-MWp (Mega Watt peak) off-grid solar PV capacity by 2020.

As per the programme, 300,000 solar street lights will be installed throughout the country with special emphasis on areas where there is no facility for street lighting systems through grid power, North Eastern States and Left Wing Extremism (LWE) affected districts.

In addition, stand-alone solar power plants of individual size up to 25-KWp (Kilo Watt peak) will be promoted in areas where grid power has not reached or is not reliable. This component is mainly aimed at providing electricity to schools, hostels, panchayats, police stations and other public service institutions. The aggregated capacity of solar power plants would be 100-MWp.

Furthermore, 2.5-mn solar study lamps will be provided in North Eastern States and LWE affected districts to school-going children.

Financial support

For solar street lights and solar power plants, financial support up to 30% of the benchmark cost of the system will be provided, except for NE States, Hill States and Island UTs where up to 90% of the benchmark cost will be provided. For solar study lamps, only 15% of the lamp cost is to be borne by the beneficiary student and balance will be provided as financial support.

The total project cost of the three components included under the Phase-III is Rs. 1,895-crore, of which Rs. 637-crore will be provided as central financial assistance.

“The off-grid solar systems will also open better livelihood opportunities for beneficiaries in rural and remote areas, thereby increasing self-employment in such areas. It is estimated that, besides increasing self-employment, the implementation of Phase-III is likely to generate employment opportunity equivalent to 8.67 lakh man-days for skilled and unskilled workers,” a press release issued by the government said.

The programme is likely to benefit 40 lakh rural households, besides providing electricity to schools, hostels, panchayats, police stations and other public service institutions and helping in increasing participation of women in education, social and livelihood activities.