Home India Ministry of New and Renewable Energy Parliament Question: Solar Energy Projects in Rural Areas...
Date: 2025-07-30 Category: Not Applicable State: Union Government Country: India

Parliament Question: Solar Energy Projects in Rural Areas

Issued by Ministry of New and Renewable Energy · Not Applicable

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Executive Summary & Key Takeaways

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.
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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.

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