Solar Off-Grid Scheme

1
Solar Off-Grid Scheme

• Scheme of MNRE for Promotion of Solar Off-Grid
  (Photovoltaic Thermal) Decentralised
  Applications
• Under JNNSM

2
Objectives

• To promote off-grid applications of solar energy
  (both SPV and Solar Thermal) for meeting Phase-I
  targets of the National Solar Mission.
• To create awareness and demonstrate effective and
  innovative use of Solar systems for individual/
  community/ institutional applications.
• To encourage innovation in addressing market
  needs and promoting sustainable business models.
• To provide support in flexible demand driven mode
  to channel partners and potential beneficiaries,
  within the framework of boundary conditions.
• To create a paradigm shift needed for
  commoditization of off-grid solar applications.
• To support consultancy services, seminars,
  symposia, training, awareness campaigns, human
  resource development, etc.

3
Scope

• Off-Grid Solar PV
• Up to 100KWp per site
• Off-Grid Decentralised Solar Thermal
• As specified by Government from time to time
• Mini-Grids for Rural Electrification
• Up to 250 KW
• To promote technology upgradation in SME
• Projects involving improvement in technology /
  expansion in production facilities/working
  capital loans

4
Financing pattern
Percentage of Project Cost
5
Channel Partners

• Renewable Energy Service Provider Companies
  (RESCOs)
• Financial Institutions (acting as Aggregators)
• Financial Integrators
• System Integrators
• Programme Administrators

6
Accreditation of Channel Partners
Rating by a Rating Agency may be considered for
Accreditation of Channel Partners
7
Approval of Project

• Formulation of Project by Channel Partner, within
  Boundary Conditions specified by MNRE
• Project Approval Committee to be set up by MNRE
  for screening approving projects
• Only PAC approved projects to be eligible for
  Subsidies under the Scheme

8
Project Approval
MNRE
PAC
Grant of Project Approval

• Seeking Project Approval

Channel partner (other than Bank / FI)
Formulation of Project within Boundary Conditions
specified by MNRE
9
Interest Subsidy

• IREDA to be the Nodal Point for providing
  Interest Subsidy
• MNRE to place funds for Interest Subsidy with
  IREDA
• IREDA to provide funds to scheduled commercial
  banks NBFCs by way of refinance _at_ 2 p.a.
• Scheduled commercial banks NBFCs to lend to
  borrowers _at_ 5 p.a. for PAC approved projects

10
Process Flow
11
Interest Subsidy Refinancing Partners
12
Interest Subsidy Refinancing partners IREDA
shall provide funds received from MNREto
refinancing institutions for loans granted by them
13
Interest Subsidy
14
Capital Subsidy Credit Linked

• IREDA to make available, up front, the funds
  received from MNRE, to primary lending
  institutions
• PLI to credit borrowers account with the capital
  subsidy amount after confirming successful
  implementation of project
• PLI to provide Utilisation Certificate to IREDA

15
Capital Subsidy
16
Capital Subsidy Non-Credit Linked

• MNRE to make available Capital Subsidy for PAC
  approved projects through State
  Nodal Agencies

17
Refinance

• Refinance Agreement between IREDA and Primary
  Lending Institution
• Refinance from IREDA _at_ 2 p.a.
• Primary lending institution to provide the loan _at_
  5 p.a. incorporating Interest Subsidy

18
Refinance Scheme Features

• Scale of refinance 100 of amount financed
• Term of refinance 5 years
• Security Charge over book debts collateral /
  guarantees as may be stipulated by IREDA.
• Repayment Quarterly
• Minimum amount per claim Rs.50 lakhs

19

• Thank You