**Executive Summary:**
The Ministry of New and Renewable Energy addresses expansion targets for renewable energy capacity to achieve 500 GW from non-fossil sources by 2030, as announced at COP26. It details targets for solar, wind, and biomass energy, outlines incentives for rooftop solar installations under the PM-Surya Ghar Muft Bijli Yojana (PMSGMBY), discusses steps to encourage private sector participation, and provides data on household solar adoption in the Bhiwani-Mahendragarh constituency. Key incentives and initiatives are detailed in Annexures I and II, respectively.
**Key Points / Main Content:**
* **Renewable Energy Targets:**
* Target: 500 GW of installed electricity capacity from non-fossil sources by 2030.
* Likely installed capacity by 2029-30:
* Solar: 292.56 GW
* Wind: 99.89 GW
* Biomass: 14.50 GW
* **Rooftop Solar Incentives (PM-Surya Ghar Muft Bijli Yojana - PMSGMBY):**
* Central Financial Assistance (CFA) for residential rooftop solar:
* First 2 kWp: Rs. 30,000/kWp (Rs. 33,000/kWp for special states/UTs).
* Additional 1 kWp: Rs. 18,000/kWp (Rs. 19,800/kWp for special states/UTs).
* No CFA beyond 3 kWp.
* Group Housing Societies/Residential Welfare Associations: Rs. 18,000/kWp (Rs. 19,800/kWp for special states/UTs) for common facilities including EV charging, up to 500 kWp (3 kWp per house).
* Incentives for DISCOMs: 5% to 10% of applicable benchmark cost based on capacity achieved above 10% of installed base.
* Incentives for ULBs/PRIs: Rs. 1000 per residential rooftop solar installation for which CFA has been transferred.
* Model Solar Village: Rs. 800 crore provisioned; Rs 1 crore assistance per district.
* **Steps to Encourage Private Sector Participation:**
* Bidding trajectory for RE power procurement bids of 50 GW/annum by REIAs from FY 2023-24 to FY 2027-28.
* 100% FDI permitted under the automatic route.
* Waiver of ISTS charges for interstate sale of solar and wind power (projects commissioned by June 30, 2025), Green Hydrogen Projects (till December 2030) and for offshore wind projects (till December 2032).
* Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory notified until 2029-30.
* Standard Bidding Guidelines issued for tariff-based competitive bidding for various RE projects.
* Various schemes launched, including PM KUSUM, PM Surya Ghar Muft Bijli Yojana, National Green Hydrogen Mission, and Viability Gap Funding (VGF) for Offshore Wind Energy Projects.
* Implementation of Solar Park schemes.
* Green Energy Corridor Scheme for transmission infrastructure.
* Electricity Rights of Consumers Rules, 2020 for net-metering.
* National Repowering and Life Extension Policy for Wind Power Projects, 2023.
* Strategy for Offshore Wind Energy Projects with a bidding trajectory of 37 GW by 2030.
* The Offshore Wind Energy Lease Rules, 2023.
* Standard Labelling programs for Solar Photovoltaic modules and Grid connected Solar Inverters.
* Transmission plan till 2030.
* Electricity Late Payment Surcharge Rules (LPS).
* Electricity Promoting Renewable Energy Through Green Energy Open Access Rules, 2022.
* Green Term Ahead Market (GTAM).
* Power dispatch against Letter of Credit (LC) or advance payment.
* **Household Solar Adoption (Bhiwani-Mahendragarh, Haryana as of 31.07.2025):**
* Bhiwani: 13,270 applications, 1,069 households benefitted.
* Mahendragarh: 6,556 applications, 551 households benefitted.
**Impact Analysis:**
* **Renewable Energy Implementing Agencies (REIAs):**
* *Impact:* Responsible for issuing RE power procurement bids of 50 GW/annum.
* *Action Required:* Implement bidding trajectory from FY 2023-24 to FY 2027-28.
* **Private Sector Developers:**
* *Impact:* Key participants in setting up renewable energy projects.
* *Action Required:* Leverage government incentives and initiatives to expand renewable energy capacity.
* **DISCOMs:**
* *Impact:* Responsible for implementing rooftop solar and motivating consumers. Eligible for incentives based on achieving targets.
* *Action Required:* Create conducive regulatory and administrative mechanisms, achieve implementation targets to avail incentives.
* **Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs):**
* *Impact:* Can receive incentives for promoting residential rooftop solar installations.
* *Action Required:* Undertake local mobilization efforts for rooftop solar deployment.
* **Consumers (Residential):**
* *Impact:* Eligible for Central Financial Assistance (CFA) for installing rooftop solar systems.
* *Action Required:* Apply for rooftop solar installations under PMSGMBY to avail CFA.
* **Group Housing Societies/Residential Welfare Associations (GHS/RWA):**
* *Impact:* Eligible for CFA for common facilities including EV charging.
* *Action Required:* Apply for rooftop solar installations for common facilities under PMSGMBY to avail CFA.
* **Designated Consumers under the Energy Conservation Act 2001:**
* *Impact:* Subject to Renewable Consumption Obligation (RCO) and penalties for non-compliance.
* *Action Required:* Ensure compliance with RCO targets.
Key Entities Referenced
Ministry of New and Renewable Energy: The Indian government ministry responsible for renewable energy development.
COP26: The 26th United Nations Climate Change Conference.
Central Electricity Authority: An organization in India responsible for advising the government on electricity policy and planning.
PM-Surya Ghar Muft Bijli Yojana: A government scheme in India to promote rooftop solar installations by providing financial assistance.
Bhiwani-Mahendragarh, Haryana: A Lok Sabha constituency and districts in the state of Haryana, India.
Renewable Energy Implementing Agencies: Agencies responsible for implementing renewable energy projects.
Renewable Purchase Obligation: A regulatory mechanism requiring obligated entities to purchase a certain percentage of their electricity from renewable sources.
Green Energy Corridor Scheme: A scheme to fund the laying of new transmission lines and create new substation capacity for evacuation of renewable power.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 2987
ANSWERED ON 06.08.2025
EXPANSION OF RENEWABLE ENERGY CAPACITY
2987. SHRI DHARAMBIR SINGH
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the Government is targeting expansion of renewable energy capacity nationwide;
(b) if so, the details of targets set for solar, wind and biomass energy;
(c) the details of incentives provided for rooftop solar installations;
(d) the steps taken by the Government to encourage private sector participation; and
(e) the details of proposals to promote household solar adoption in Bhiwani-Mahendragarh Lok
Sabha Constituency of Haryana?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) & (b) In line with Hon’ble Prime Minister’s announcement at COP26, Ministry of New and
Renewable Energy is working towards achieving 500 GW of installed electricity capacity from
non-fossil sources by 2030. As per the Central Electricity Authority (CEA)’s Report on Optimal
Generation Mix for 2029-30 (Ver.2.0), the likely installed capacity of solar, wind and biomass
energy in 2029-30 is as under:
Resource Likely installed capacity
in 2029-30 (in GW)
Solar 292.56
Wind 99.89
Biomass 14.50
(c) Details of incentives provided as Central Financial Assistance (CFA), for rooftop solar
installations under PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY) are given at Annexure-I.
(d) Presently, most of renewable energy projects are set up by private sector developers. The
Government of India has also taken several steps and initiatives to promote and accelerate
renewable energy capacity in the country to realize the target of 500 GW non-fossil power capacity
by 2030, as given at Annexure-II.
(e) Number of applications submitted for rooftop solar installations and the number of households
benefitted as on 31.07.2025, under PM-SGMBY, in Bhiwani and Mahendragarh districts of
Haryana are given below:
District No. of No. of
Applications Households
Benefitted
Bhiwani 13,270 1,069
Mahendragarh 6,556 551
*****Annexure-I
Annexure-I referred to in reply of part (c) of the Lok Sabha Unstarred Question
No. 2987 to be answered on 06.08.2025
Incentives being provided as Central Financial Assistance (CFA)
under PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY)
Scheme/Programmes Incentives presently available as per the Scheme
a) PM Surya Ghar: Muft Bijli 1. Under the PMSG: MBY, the CFA for installation of Rooftop
Yojana Solar in the Residential Sector is given below:
CFA (Special
Type of Residential
S.No. CFA Category
Segment
States/UTs)
Residential Sector
(first 2 kWp of
1 Rooftop Solar (RTS) Rs.30,000/kWp Rs.33,000/kWp
capacity or part
thereof)
Residential Sector
(with additional RTS
2 Rs.18,000/kWp Rs.19,800/kWp
capacity of 1 kWp or
part thereof)
Residential Sector
(additional RTS No additional No additional
3
capacity beyond 3 CFA CFA
kWp)
Group Housing
Societies/
Residential Welfare
Associations
(GHS/RWA) etc. for
4 Rs.18,000/kWp Rs.19,800/kWp
common facilities
including EV
charging up to 500
kWp (@ 3 kWp per
house)
2. The PMSG: MBY scheme includes the provision for incentive
to DISCOMs to motivate and help them in activities such as
create conducive regulatory and administrative mechanisms,
achieve targets for implementation. The incentive is pegged at
5% of applicable benchmark cost for capacity achieved above
10% and less than 15% of installed base capacity; 10% of the
applicable benchmark cost for capacity achieved beyond 15%
of installed base capacity.
3. To push the deployment of residential rooftop solar system
(RTS) and undertake local mobilization efforts, the PMSG:
MBY scheme also includes the provision for incentive to the
Urban Local Bodies (ULBs) and Panchayat Raj Institutions
(PRIs), at the rate of Rs.1000 for every installation of RTS in
residential segment in the jurisdiction of ULB/PRI, for which
CFA has been transferred to consumer.
4. Further, a fund of Rs. 800 crore has been provisioned for
developing a Model Solar Village in each district of the
country, with an assistance of Rs 1 crore per Model Solar
Village under PMSG: MBY scheme.Annexure-II
Annexure-II referred to in reply of part (d) of the Lok Sabha Unstarred Question
No. 2987 to be answered on 06.08.2025
The Government of India has taken several steps and initiatives to promote and accelerate
renewable energy capacity in the country to realize the commitment of 500 GW non-fossil energy
capacity by 2030. These include, inter-alia, the following:
• Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of
RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies
(REIAs) [REIAs: Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC
Limited, SJVN Limited] from FY 2023-24 to FY 2027-28.
• Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic
route.
• Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar
and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen
Projects till December 2030 and for offshore wind projects till December 2032.
• To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable
Consumption Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is
applicable to all designated consumers under the Energy Conservation Act 2001 will attract
penalties on non-compliance. RCO also includes specified quantum of consumption from
Decentralized Renewable Energy sources.
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of
Power from Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE
(FDRE) projects have been issued.
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-
KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar
PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha
Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability
Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched.
• Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented
to provide land and transmission to RE developers for installation of RE projects at large scale.
• Laying of new transmission lines and creating new sub-station capacity has been funded under
the Green Energy Corridor Scheme for evacuation of renewable power.
• Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five
hundred Kilowatt or up to the electrical sanctioned load, whichever is lower.• “National Repowering and Life Extension Policy for Wind Power Projects, 2023” has been
issued.
• “Strategy for Establishments of Offshore Wind Energy Projects” has been issued indicating a
bidding trajectory of 37 GW by 2030 and various business models for project development.
• The Offshore Wind Energy Lease Rules, 2023 have been notified vide Ministry of External
Affairs notification dated 19th December 2023, to regulate the grant of lease of offshore areas
for development of offshore wind energy projects.
• Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected
Solar Inverters have been launched.
• To augment transmission infrastructure needed for steep RE trajectory, transmission plan has
been prepared till 2030.
• “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been
notified.
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022,
has been notified on 06th June 2022 with objective of ensuring access to affordable, reliable,
and sustainable green energy for all. Green Energy Open Access is allowed to any consumer
with contract demand of 100 kW or above through single or multiple single connection
aggregating Hundred kW or more located in same electricity division of a distribution licensee.
• Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Energy
Power through exchanges.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or
advance payment to ensure timely payment by distribution licensees to RE generators.