‘Rooftop PV & Small Solar Power Generation Programme’ (RPSSGP) of MNRE

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In order to give a thrust to rooftop PV and other small solar power plants connected at distribution network at voltage levels below 33 kV envisaged under Phase I of the Jawaharlal Nehru National Solar Mission (JNNSM), the Ministry of New and Renewable Energy (MNRE) launched a programme on generation based incentives. The programme is referred to as ‘Rooftop PV & Small Solar Power Generation Programme’ (RPSSGP).


  • The key features of the programme are as under:


  • The projects should be designed for completion before March 31, 2013.


  • The local distribution utility in whose area the plant is located, would sign a Power Purchase Agreement (PPA) with the Project Proponent at a tariff determined by the appropriate State Electricity Regulatory Commission (SERC).


  • Generation Based Incentive (GBI) will be payable to the distribution utility for power purchased from solar power project selected under these guidelines, including captive consumption of Solar Power generated (to be measured on ACside of the inverter). The GBI shall be equal to the difference between the tariff determined by the Central Electricity Regulatory Commission (CERC) and the Base Rate, which will be Rs 5.50 per kWh (for Financial year 2010-11), which shall be escalated by3% every year.


GBI shall be payable to the distribution utility for period of 25 years from the date of commissioning of the project.


IREDA has been designated as ‘Programme Administrator’ by the Ministry of New and Renewable Energy for administering the generation based incentive programme for rooftop PV and other small solar power plants.


Project   Category Capacity   Limit
Projects connected at HT level of   distribution

network with installedcapacity of   100kW and upto 2 MW

Projects connected at LT level of   distribution

network with installed capacity   lower than 100kW










Tamil Nadu has launched India’s largest solar rooftop programme for providing Solar powered Green Houses (3 lakh houses by 2015-16) under Chief Minister’s Solar powered Green Houses scheme, with provision of solar powered Home lighting systems with battery backup in 60,000 Green Houses in 2011-12. Another 60000 green houses will be provided with solar lights during 2012-13 at a cost of Rs.180 crores. This scheme is also first of its kind in India with grid back up.


The Govt. of Orissa has declared Orissa Renewable Energy Development Agency (OREDA) as the Nodal Agency (State Competent Authority) to pre-register the proposals from the prospective developers for holding RPSSGP under JNNSM.

In order to enable the project proponents to get registered with IREDA, the Commission determined the following generic tariff for Rooftop PV and other Small Solar Power Plants to be commissioned in the State of Orissa under JNNSM

The following tariff parameters are being considered while determining the generic


Financial Parameters

(a) Capital Cost

(b) Debt equity ratio

(c) Loan and finance charges

(d) Depreciation

(e) Return on equity

(f) Interest on Working Capital

(g) Operation and maintenance expenses


  • Capacity Utilisation Factor (CUF) has been assumed at 18.5% which is the average of 18% recommended by Draft CERC guideline and 19% recommended by the study carried out by WISE taking into consideration the state specific parameters.


  • Capital cost has been taken as Rs.17 cr. per MW which is very close to what is assumed in the draft tariff guidelines for rooftop PV and other Small Solar Power Plants dtd.09th June, 2010.
  • Debt-equity ratio is assumed at 70:30 which is as per CERC Draft Guidelines.


  • Interest on loan is assumed at 12.5% considering the recent ‘base rate’ of 7.5% specified by State Bank of India. Loan repayment period is considered as 10 years.


  • Differential depreciation of 7% is allowed during 1st ten years of the tariff period and remaining depreciation shall be spread over the balance useful life of the project from 11th year onwards.


  • Pre-tax return on equity of 19% per annum for 1st ten years and 24% per annum from 11th year onwards has been assumed.


  • Interest on working capital has been taken at 12% considering ‘base rate’ of 7.5% of SBI. O & M expenses have been assumed at Rs.11 lakhs per MW with 5.72% escalation per annum.


  • Levellised tariff is computed over useful life and will be applicable for 25 years


  • The metering point for energy accounting shall be at HT side of generating transformer of RPSSGP. The RPSSGP shall be connected normally to the 11 KV bus of the nearest 33/11 KV bus of DISCOM’s substation. With the consent of DISCOM in the specific cases the RPSSGP may also be connected to the nearest 11 KV line through LILO arrangement. The necessary interconnecting line shall be constructed by DISCOM and the cost of such interconnection shall be reimbursed by the project proponent to the DISCOM. The billing meter will be jointly read by the project proponent, GRIDCO and DISCOMs for proper energy accounting and billing by theproject proponent to GRIDCO at OERC determined rate and GRIDCO to DISCOM at approved BSP rate


  • Rebate: For payment of bills of the Rooftop PV and Other Small Solar Power Projects through letter of credit or by cash within two working days (except holidays 11 under N.I. Act), a rebate of 2% shall be allowed. Where payments are made other than through letter of credit within a period of one month of presentation of bills by the generating company, a rebate of 1% shall be allowed.


  • Late Payment Surcharge: In case the payment of any bill for charges payable under these Guidelines is delayed beyond a period of 60 days from the date of billing, a late payment surcharge at the rate of 1.25% per month shall be levied by the generating company.
  • Sharing of CDM benefits: The proceeds of the carbon credit from approved CDM Project shall be shared between the project developers and GRIDCO in the following manner.

(a) 100% of the gross proceeds on account of CDM benefit to be retained by the developer in first year after the date of commercial operation.

(b) In the second year, the share of GRIDCO shall be 10% which shall be progressively increased by 10% every year till it reaches 50%, where after the proceeds shall be shared in equal proportion by generating company and GRIDCO.


According to Maharashtra Electricity Regulatory Commission, Regulation 68 of the RE Tariff Regulations specifies, that the tariff for Solar Rooftop PV  projects and other small solar

projects will be Rs 0.50/kWh higher than the Tariff specified for Solar PV projects in the Regulations.

Accordingly, the Tariff for such Projects in FY 2012-13 shall be as follows:



Tariff Period


Levelised Total Tariff (FY 2012-13)


Benefit of Accelerated Depreciation

(if availed)


Net Levelised Tariff (upon adjusting for   Accelerated Depreciation benefit)

(if availed)


Solar rooftop PV and other Small solar power   Projects 25 11.66 1.65 10.01









The above Tariff shall be applicable for Solar Rooftop PV and other small solar Projects wherein PPA are signed after March 31, 2012 and projects are commissioned during FY 2012-13, and the same shall be valid for a tariff period of 25 years from the Commercial Operation Date (COD).


For the state of Karnataka, the policy is structured as follows


  • Roof Top Solar Tariff:  The Roof Top Grid connected solar KWp level projects of 5 KWp to 100 KWp will be allowed connecting at 415 V, 3 phase, 11 KV level of distribution system of the licensee in such a manner that the maximum energy injection will not be more than 70% of the consumption from the distribution licensee‘s source by the Solar Roof Top consumer. Any injection in a billing period exceeding 70% of the consumption will be treated as inadvertent and will not be considered for commercial purpose; neither the deficit is carried forward to next billing period. Such injection will be settled on Net Basis with the consumption of the said consumer from the distribution licensee’s source in each billing period.


  • Roof Top Grid connected solar power quantum fed to the Grid  will be eligible for a Tariff of Rs 3.40 per KWh along with Net Metering facility. If any incentives available from Ministry of New and Renewable Energy Government of India, it will be passed on to the Developer. However, Roof Top systems will be additionally eligible for any other subsidies extended to the Roof Top Projects.


  • Solar Photo Voltaic systems below 2 KWp will be battery backed isolated stand alone systems. Isolated Solar Photo Voltaic sources up to 200 KWp will be for Rural Applications


  • Roof Top small scale Solar PV Installations will be encouraged with Net Metering facility to feed surplus power generated to the Grid.


  • Under Solar Karnataka Programme it is targeted for 25000 Solar Roof Tops of 5 to 10 kwp with Net Metering will be taken up with a 250 MW potential during next 5 years with a generation potential of 350 MU.


  • Regulatory bodies responsible for Rooftop systems:


Karnataka Electricity  Regulation Commission:Concurrence for Solar Tariff and Roof Top Net Metering.


Energy Department, Government of Karnataka: Approval to take up MW scale and Roof Top Solar projects.


The multi-storey buildings in the state of West Bengal will have the obligation to install solar panels on the rooftops for power generation, according to a new policy approved by the state government on May 23,2012, regarding power generation from renewable energy sources. The policy was cleared by the state cabinet committee on infrastructure and industry.

The new policy mandates the multi-storey buildings to have solar panels installed on the rooftops. Power generated has to be transferred to grid and residents will draw electricity from it. The additional amount will be adjusted in their monthly bills.

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