Executive Summary:
This document outlines the Indian government's policies and schemes to promote solar energy projects, particularly in rural areas. It addresses questions raised in Lok Sabha regarding the implementation, land acquisition, and protection of farmers' interests. The Ministry of New and Renewable Energy (MNRE) facilitates these projects, with land acquisition managed by project developers or individual beneficiaries and State Governments.
Key Points / Main Content:
Solar Energy Promotion Schemes:
* PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY):
* Provides Central Financial Assistance (CFA) for rooftop solar installations in residential sector (up to 3 kWp).
* Offers incentives to DISCOMs, Urban Local Bodies (ULBs), and Panchayat Raj Institutions (PRIs) to promote rooftop solar adoption.
* Allocates ₹800 crore for developing Model Solar Villages in each district.
* PM-KUSUM Scheme:
* Component A: Sets up 10,000 MW of decentralized ground/stilt-mounted solar power plants, offering Procurement Based Incentive (PBI) to DISCOMs.
* Component B: Installs 14 lakh standalone solar pumps with CFA provided, with higher CFA for North Eastern States, Sikkim, Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman & Nicobar Islands.
* Component C: Solarizes 35 lakh grid-connected agriculture pumps through Individual Pump Solarization (IPS) and Feeder Level Solarization (FLS), offering CFA with increased assistance for special category states.
* New Solar Power Scheme for Tribal and PVTG Habitations/Villages under Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN):
* Provision of 0.3 kW Solar off-grid system for 1 lakh Tribal and PVTG HHs.
* Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA) provides solar street lighting and lighting in MPCs of PVTG areas under PM-JANMAN.
* Solarisation of 2000 public institutions through off-grid solar systems under DA.
Land Acquisition:
* Project developers or individual beneficiaries are responsible for arranging land.
* MNRE requests State Governments to identify suitable government land for Renewable Energy (RE) projects.
* In case of private land acquisition, fair and timely compensation must be ensured.
Impact Analysis:
State Governments:
* Impact: Responsible for land identification and ensuring fair compensation during land acquisition.
* Action Required: Identify suitable government land, ensure fair compensation for private land acquisition, and facilitate a conducive environment for RE project development.
DISCOMs:
* Impact: Benefit from Procurement Based Incentive (PBI) under PM-KUSUM and incentivized under PMSG: MBY.
* Action Required: Facilitate the purchase of solar power, create conducive regulatory and administrative mechanisms, and achieve implementation targets.
Farmers:
* Impact: Benefit from decentralized solar power plants, standalone solar pumps, and solarization of agriculture pumps.
* Action Required: Participate in the PM-KUSUM scheme to adopt solar-powered agricultural solutions.
Residential Consumers:
* Impact: Receive Central Financial Assistance (CFA) for installing rooftop solar systems.
* Action Required: Install rooftop solar to avail CFA under PM Surya Ghar: Muft Bijli Yojana.
Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs):
* Impact: Incentivized to promote rooftop solar adoption in their jurisdictions.
* Action Required: Promote and support the installation of rooftop solar systems in residential areas.
Key Entities Referenced
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for promoting and developing new and renewable energy sources.
PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY): A scheme for installing rooftop solar systems in the residential sector, providing Central Financial Assistance (CFA).
PM-KUSUM: A scheme promoting decentralized solar power plants, standalone solar agriculture pumps, and solarization of grid-connected agriculture pumps.
DISCOMs: Distribution Companies, electricity distribution companies that are incentivized under the PMSG: MBY scheme.
Urban Local Bodies (ULBs): Local governing bodies in urban areas that are incentivized under the PMSG: MBY scheme for promoting residential rooftop solar installations.
Panchayat Raj Institutions (PRIs): Local governing bodies in rural areas that are incentivized under the PMSG: MBY scheme for promoting residential rooftop solar installations.
North Eastern States: A group of states in India that receive enhanced Central Financial Assistance (CFA) under the PM-KUSUM scheme. Specifically mentioned along with Sikkim, Jammu Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Lakshadweep and Andaman & Nicobar Islands.
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN): A scheme focusing on tribal and PVTG (Particularly Vulnerable Tribal Groups) habitations/villages, providing off-grid solar systems and street lighting.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 1760
ANSWERED ON 30/07/2025
SOLAR ENERGY PROJECTS IN RURAL AREAS
1760. SHRI ARVIND GANPAT SAWANT
SHRI SANJAY HARIBHAU JADHAV
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the details and name of States, districts, towns in which wind and solar energy projects are
being implemented in the country at present;
(b) the policy of the Government for setting up of solar energy projects particularly in rural
areas and the criteria fixed in this regard;
(c) the steps taken by the Government to ensure a transparent and fair process of land
acquisition for the said projects/schemes;
(d) whether the Government has taken any steps to prevent incidents like forceful land
acquisition or involvement of criminal elements in land acquisition and if so, the details
thereof;
(e) the number of cases have come to the notice of the Government since the year 2014 till
date;
(f) the manner in which such cases have been investigated and settled along with the action
taken against the culprits; and
(g) the steps taken by the Government to protect the interests of farmers and complete the
projects?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) Ministry of New and Renewable Energy (MNRE) is facilitating implementation of wind
and solar energy projects in all feasible locations of the country.
(b) The Government has taken steps to implement various schemes to promote solar energy in
rural areas, the details of which are provided at Annexure.
(c) to (g) The project developers or individual beneficiaries arrange land for setting up such
projects. Further, land is a subject of the State Governments. MNRE has also been requesting
the State Governments to identify suitable government land for the installation of Renewable
Energy (RE) projects. In case of lack of availability of sufficient Government land, private
lands could also be identified. However, it is important to ensure fair and timely compensation
in such cases, so that not only the acquisition of land is expedited, a conducive environment is
also created for development of RE projects in a time-bound manner. The State Governments
have also been requested for the same.
*****ANNEXURE
Referred in reply of the part (b) of the Lok Sabha Unstarred Question 1760 to be
answered on 30.07.2025.
List of Operational Schemes to Promote Solar Energy in Rural Areas
Scheme/Programmes Incentives presently available as per the Scheme
a) PM Surya Ghar: Muft Bijli 1. Under the PMSG: MBY, the Central Financial
Yojana Yojana for installing Assistance (CFA) for installation of Rooftop Solar in
rooftop solar for One Crore the Residential Sector is given below:
households.
Type of CFA (Special
Sl.
Residential CFA Category
No.
Segment States/UTs)
Residential Sector
(first 2 kWp of
1 Rooftop Solar Rs.30,000/kWp Rs.33,000/kWp
(RTS) capacity or
part thereof)
Residential Sector
(with additional
2 RTS capacity of 1 Rs.18,000/kWp Rs.19,800/kWp
kWp or part
thereof)
Residential Sector
(additional RTS No additional No additional
3
capacity beyond 3 CFA CFA
kWp)
Group Housing
Societies/
Residential
Welfare
4 Associations Rs.18,000/kWp Rs.19,800/kWp
(GHS/RWA) etc.
for common
facilities including
EV charging up toScheme/Programmes Incentives presently available as per the Scheme
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.
b) PM-KUSUM scheme for Component A: Setting up of 10,000 MW of Decentralized
setting up decentralized solar Ground/Stilt Mounted Solar Power Plants
or other renewable energy
Benefits available: Procurement Based Incentive (PBI) to the
power plants, installation of
DISCOMs @ 40 paise/kWh or Rs. 6.60 lakhs/MW/year,
stand-alone solar agriculture
whichever is lower, for buying solar power under this scheme.
pumps, and solarization of
The PBI is given to the DISCOMs for a period of five years from
existing grid-connected
the Commercial Operation Date of the plant. Therefore, the total
agriculture pumps, including
PBI payable to DISCOMs is up to Rs. 33 Lakh per MW.
feeder-level solarization. The
scheme benefits not only Component B: Installation of 14 Lakh Stand-alone Solar PumpsScheme/Programmes Incentives presently available as per the Scheme
farmers but also the States Benefits available: CFA of 30% of the benchmark cost or the
and DISCOMs. 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 Andaman & Nicobar 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 Andaman & Nicobar 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, Uttarakhand, Lakshadweep
and Andaman & Nicobar Island, CFA of Rs. 1.75 crore per MW
is provided.
c) New Solar Power Scheme
(for Tribal and PVTG Components Central Share (100%)
Habitations/Villages) underScheme/Programmes Incentives presently available as per the Scheme
Pradhan Mantri Janjati Provision of 0.3 kW Solar Rs. 50,000 per HH or as per
Adivasi Nyaya Maha off-grid system for 1 lakh actual cost
Abhiyan (PM JANMAN) Tribal and PVTG HHs
and Dharti Aabha Janjatiya Solar street lighting and Rs. 1 lakh per MPC
Gram Utkarsh Abhiyan (DA provision of lighting in 1500
JGUA) with a provision for MPCs of PVTG areas (under
providing off-grid Solar PM JANMAN component
Lighting where electricity only)
supply through grid is not Solarisation of 2000 public
Rs 1 lakh per kW with
techno-economically institutions through off-grid
maximum solar PV capacity
feasible. solar systems (under DA
of 20 kW per public
JGUA component only)
institution.