Executive Summary:
The Ministry of New and Renewable Energy (MNRE) provided information regarding the establishment of solar power plants in India in response to Lok Sabha Unstarred Question No. 641 on July 23, 2025. As of June 30, 2025, 116.25 GW of solar projects have been installed. The response details steps taken to increase solar energy generation, operational schemes to promote solar energy, budget allocation and expenditure for solar energy projects over the last five years, and the district-wise installed capacity of grid-connected solar power projects in Bihar.
Key Points / Main Content:
Steps to Increase Solar Energy Generation:
* MNRE has issued a bidding trajectory for 50 GW/annum of RE power procurement bids by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
* 100% Foreign Direct Investment (FDI) is permitted under the automatic route.
* Inter-State Transmission System (ISTS) charges are waived for interstate sale of solar and wind power for projects commissioned by June 30, 2025, for Green Hydrogen Projects until December 2030, and for offshore wind projects until December 2032.
* Renewable Purchase Obligation (RPO) followed by Renewable Consumption Obligation (RCO) trajectory has been notified until 2029-30.
* Standard Bidding Guidelines have been issued for tariff-based competitive bidding for power procurement from Grid-Connected Solar, Wind, Wind-Solar Hybrid, and Firm Dispatchable RE (FDRE) projects.
* The Green Energy Corridor Scheme funds new transmission lines and substation capacity for renewable power evacuation.
* Electricity Rights of Consumers Rules, 2020, allows net-metering up to 500 kW or the electrical sanctioned load, whichever is lower.
* Standard Labelling (SL) programs have been launched for Solar Photovoltaic modules and Grid-connected Solar Inverters.
* A transmission plan has been prepared until 2030 to augment transmission infrastructure.
* Electricity Late Payment Surcharge (LPS) rules have been notified.
* Green Energy Open Access Rules, 2022, ensures access to affordable, reliable, and sustainable green energy for consumers with a contract demand of 100 kW or above.
* The Green Term Ahead Market (GTAM) facilitates the sale of Renewable Energy Power through exchanges.
* Power dispatch requires a Letter of Credit (LC) or advance payment to ensure timely payments to RE generators.
Operational Schemes to Promote Solar Energy:
* PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) provides Central Financial Assistance (CFA) for rooftop solar installations in the residential sector, offering free electricity up to 300 units monthly for one crore households.
* Incentives are provided to DISCOMs, Urban Local Bodies (ULBs), and Panchayat Raj Institutions (PRIs) to promote rooftop solar deployment.
* Rs. 800 crore is provisioned for developing a Model Solar Village in each district, with Rs 1 crore assistance per village under the PMSG: MBY scheme.
* Central Public Sector Undertaking (CPSU) Scheme provides Viability Gap Funding (VGF) support up to Rs. 55 lakhs per MW for setting up grid-connected Solar Photovoltaic (PV) Power Projects by Government Producers using domestically manufactured solar PV cells and modules.
* PLI Scheme for High-Efficiency Solar PV Modules provides incentives based on sales, performance parameters, and local value addition.
* Solar Park Scheme aims to set up 40,000 MW capacity, providing financial assistance for Detailed Project Reports (DPR) and shared infrastructure development.
* PM-KUSUM scheme supports decentralized solar power plants, standalone solar agriculture pumps, and solarization of existing grid-connected agriculture pumps, offering Procurement Based Incentive (PBI) to DISCOMs and CFA for farmers.
* New Solar Power Scheme for Tribal and PVTG Habitations/Villages under PM JANMAN and Dharti Aabha-Janjatiya Gram Utkarsh Abhiyan (DA-JGUA) provides off-grid solar systems and solar street lighting in tribal areas.
Budget Allocation and Expenditure:
* Details of budget allocation and expenditure for solar energy projects during the last 5 years (2020-2025) are provided in Annexure III.
District-wise Installed Capacity in Bihar:
* Details of installed capacity of grid-connected solar power projects in the State of Bihar, district-wise, is provided at Annexure IV.
Impact Analysis:
Renewable Energy Implementing Agencies (REIAs):
* Impact: REIAs like SECI, NTPC Limited, NHPC Limited, and SJVN Limited are responsible for issuing RE power procurement bids of 50 GW/annum.
* Action Required: Implement bidding trajectory for RE power procurement as per MNRE guidelines.
Consumers:
* Impact: Consumers benefit from increased renewable energy options, potential cost savings, and access to sustainable energy.
* Action Required: May need to adapt to new Renewable Consumption Obligation (RCO) and explore Green Energy Open Access options.
Distribution Companies (DISCOMs):
* Impact: DISCOMs can receive incentives for promoting rooftop solar and buying solar power under the PM-KUSUM scheme.
* Action Required: Facilitate rooftop solar installations, achieve targets for implementation, and participate in the PM-KUSUM scheme.
Manufacturers of Solar PV Modules:
* Impact: Eligible for Production Linked Incentive (PLI) based on sales, performance, and local value addition.
* Action Required: Increase production and sales of high-efficiency solar PV modules, improve performance parameters, and maximize local value addition.
Farmers:
* Impact: Benefits from decentralized solar power plants, standalone solar agriculture pumps, and solarization of existing pumps under the PM-KUSUM scheme.
* Action Required: Participate in the PM-KUSUM scheme to install solar pumps and solarize existing pumps.
Tribal Communities:
* Impact: Access to off-grid solar systems and solar street lighting under the New Solar Power Scheme for Tribal and PVTG Habitations/Villages.
* Action Required: Utilize the provided off-grid solar systems and street lighting.
State Government of Bihar:
* Impact: Indicated through the district-wise data on installed solar power projects.
* Action required: Continue to promote solar energy projects, especially in districts with lower installed capacity.
Key Entities Referenced
Ministry of New and Renewable Energy: The Indian government ministry responsible for new and renewable energy.
Lok Sabha: The lower house of the Parliament of India, where the unstarred question was raised.
SHRI ABHAY KUMAR SINHA: The Member of Parliament who raised the unstarred question.
SHRI SHRIPAD YESSO NAIK: The Minister of State for New Renewable Energy and Power who provided the answer.
Bihar: A state in eastern India, for which the district-wise installed capacity of grid-connected solar power projects is provided.
Renewable Energy Implementing Agencies: REIAs: Agencies responsible for issuing RE power procurement bids.
PM Surya Ghar: Muft Bijli Yojana: A scheme for installing rooftop solar and providing free electricity up to 300 units every month for One Crore States/UTs households.
Solar Energy Corporation of India Limited: SECI: An entity involved in issuing bids for renewable energy procurement.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 641
ANSWERED ON 23/07/2025
SETTING UP OF SOLAR PLANTS
641. SHRI ABHAY KUMAR SINHA
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the Government has taken/proposes to take any steps to set up more number of
solar power plants in the country;
(b) if so, the progress made so far under those schemes and their targeted capacity along with
the details of budget allocation and expenditure during the last five years, year-wise;
(c) If not, the reasons therefor; and
(d) the details of installed capacity of grid-connected solar power projects in the State of Bihar
so far, district-wise?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) to (c) As on 30.06.2025, solar projects of 116.25 GW capacity have been installed in the
country. The Government has already taken various progressive steps to set up solar power
plants in the country, which are mentioned at Annexure-I. Government has also been
implementing various schemes to promote solar energy in the country which are provided at
Annexure-II. The details of budget allocation and expenditure during last 5 years under the
above schemes is given at Annexure-III.
(d) The details of installed capacity of grid-connected solar power projects in the State of Bihar
so far, district-wise, is provided at Annexure-IV.
*****ANNEXURE-I REFFERED TO IN REPLY TO PART (a), (b) & (c) OF LOK SABHA
UNSTARRED QUESTION NO. 641 FOR 23.07.2025
Steps Taken to increase Solar Energy Generation in the Country
• 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.
• 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.
• 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.ANNEXURE-II REFFERED TO IN REPLY TO PART (a), (b) & (c) OF LOK SABHA
UNSTARRED QUESTION NO. 641 FOR 23.07.2025
List of Operational Schemes to Promote Solar Energy
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 Yojana for installing Solar in the Residential Sector is given below:
rooftop solar and providing free CFA (Special
Type of Residential
electricity up to 300 units every S.No. CFA Category
Segment
month for One Crore States/UTs)
households.
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 theScheme/Programmes Incentives presently available as per the Scheme
country, with an assistance of Rs 1 crore per Model Solar
Village under PMSG: MBY scheme.
b) Central Public Sector Viability Gap Funding (VGF) support up to Rs. 55 lakhs per MW to the
Undertaking (CPSU) Scheme CPSUs/Govt. Organizations entities selected through competitive
Phase-II (Government Producer bidding process.
Scheme) for setting up 12,000
MW grid-connected Solar
Photovoltaic (PV) Power
Projects by Government
Producers, using domestically
manufactured solar PV cells
and modules, with Viability
Gap Funding (VGF) support,
for self-use or use by
Government/ Government
entities, either directly or
through Distribution
Companies (DISCOMS).
c) PLI Scheme ‘National The beneficiaries are eligible for Production Linked Incentive (PLI) on
Programme on High Efficiency production and sale of solar PV modules. The quantum of PLI eligible
Solar PV Modules’ for for disbursal depends upon:
achieving manufacturing
(i) quantum of sales of solar PV modules;
capacity of Giga Watt (GW)
(ii) performance parameters (efficiency and temperature
scale in High Efficiency Solar
coefficient of maximum power) of solar PV modules sold;
PV modules (Tranche- I & II).
and
(iii) percentage of local value addition in modules sold.
d) Solar Park Scheme with a (a) Up to Rs. 25 lakhs per Solar Park, for preparation of Detailed Project
target of setting up 40,000 MW Report (DPR).
capacity. Under the scheme, the
(b) Rs. 20 lakh per MW or 30% of the project cost, whichever is lower,
infrastructure such as land,
for development of shared infrastructure of Solar Park.
roads, power evacuation system
water facilities are developed
with all statutory
clearances/approvals. Thus, the
scheme helps expeditious
development of utility-scale
solar projects in the country.
e) PM-KUSUM scheme for Component A: Setting up of 10,000 MW of Decentralized
setting up decentralized solar or Ground/Stilt Mounted Solar Power Plants
other renewable energy power
Benefits available: Procurement Based Incentive (PBI) to the
plants, installation of stand-
DISCOMs @ 40 paise/kWh or Rs.6.60 lakhs/MW/year, whichever is
alone solar agriculture pumps,
lower, for buying solar power under this scheme. The PBI is given to
and solarization of existing grid-
the DISCOMs for a period of five years from the Commercial
connected agriculture pumps,
Operation Date of the plant. Therefore, the total PBI payable to
including feeder-level
DISCOMs is up to Rs. 33 Lakh per MW.
solarization. The schemeScheme/Programmes Incentives presently available as per the Scheme
benefits not only farmers but Component B: Installation of 14 Lakh Stand-alone Solar Pumps
also the States and DISCOMs.
Benefits available: CFA of 30% of the benchmark cost or the tender
cost, whichever is lower, of the stand-alone solar agriculture pump is
provided. However, in North Eastern States, Sikkim, Jammu &
Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and
A&N Islands, CFA of 50% of the benchmark cost or the tender cost,
whichever is lower, of the stand-alone solar pump is provided.
Component B can also be implemented without State share of 30%. The
Central Financial Assistance will continue to remain 30% and rest 70%
will be borne by the farmer.
Component C: Solarisation of 35 Lakh Grid Connected Agriculture
Pumps including through Feeder Level Solarisation
Benefits available:
(a) Individual Pump Solarization (IPS): CFA of 30% of the benchmark
cost or the tender cost, whichever is lower, of the solar PV component
will be provided. However, in North Eastern States, Sikkim, Jammu &
Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and
A&N Islands, CFA of 50% of the benchmark cost or the tender cost,
whichever is lower, of the solar PV component is provided. Component
C (IPS) can also be implemented without State share of 30%. The
Central Financial Assistance will continue to remain 30% and rest 70%
will be borne by the farmer.
(b) Feeder Level Solarization (FLS): Agriculture feeders can be
solarized by the State Government in CAPEX or RESCO mode with
CFA of Rs. 1.05 Crore per MW as provided by MNRE. However, in
North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal
Pradesh, Uttarkhand, Lakshadweep and Andaman & Nicobar Island,
CFA of Rs. 1.75 crore per MW is provided.
f) New Solar Power Scheme
(for Tribal and PVTG Components Central Share (100%)
Habitations/Villages) under Provision of 0.3 kW Solar Rs. 50,000 per HH or as per
Pradhan Mantri Janjati Adivasi
offgrid system for 1 lakh actual cost
Nyaya Maha Abhiyan (PM
Tribal and PVTG HHs
JANMAN) and Dharti Aabha
Solar street lighting and Rs. 1 lakh per MPC
Janjatiya Gram Utkarsh
provision of lighting in 1500
Abhiyan (DA JGUA) with a
MPCs of PVTG areas
provision for providing off-grid
Solar Lighting where (under PM JANMAN
electricity supply through grid component only)
is not techno-economically Solarisation of 2000 public
Rs 1 lakh per kW with
feasible. institutions through off-grid
maximum solar PV capacity
solar systems (under DA
of 20 kW per public
JGUA component only)
institutionANNEXURE-III REFFERED TO IN REPLY TO PART (a), (b) & (c) OF LOK SABHA
UNSTARRED QUESTION NO. 641 FOR 23.07.2025
Details Of Budget Allocation and Expenditure During Last 5 Years under schemes meant
for Solar Energy Projects
Financial Year Budget Allocation Expenditure done
(In Rs. crore) (In Rs. crore)
2020-2021 1900.62 1480.08
2021-2022 3499.87 2732.86
2022-2023 4980.46 3881.27
2023-2024 6041.56 4834.07
2024-2025 15061.35 12237.59ANNEXURE-IV REFFERED TO IN REPLY TO PART (d) OF LOK SABHA
UNSTARRED QUESTION NO. 641 FOR 23.07.2025
District-wise Installed Capacity of Grid-Connected Solar Power Projects in Bihar
Installed Capacity in
Sl. No. Name of the District
MW
1 Araria 1.33
2 Arwal 0.95
3 Aurangabad 21.64
4 Banka 81.05
5 Begusarai 1.99
6 Bhagalpur 2.57
7 Bhojpur 1.90
8 Buxar 0.82
9 Dharbhanga 3.79
10 Gaya 63.58
11 Gopalganj 0.97
12 Jamui 1.22
13 Jehanabad 1.59
14 Kaimur 1.60
15 Katihar 1.67
16 Khagaria 0.25
17 Kishanganj 2.89
18 Lakhisarai 1.32
19 Madhepura 1.65
20 Madhubani 1.79
21 Munger 2.27
22 Muzaffarpur 2.72
23 Nalanda 10.60
24 Nawada 14.57
25 Paschim Champaran 17.85
26 Patna 15.48
27 Purbi Champaran 2.15
28 Purnia 6.16
29 Rohtas 6.17
30 Saharsa 1.15
31 Samastipur 2.70
32 Saran 1.66
33 Sheikhpura 1.20
34 Sheohar 1.30
35 Sitamadhi 2.83
36 Siwan 0.46
37 Supaul 2.98
38 Vaishali 2.32
39 Others/Capacity added by DISCOMs 17.95
Total 307.07