Guidelines on implementation of Phase – II of Grid Connected Rooftop Solar

Programme for achieving 40 GW capacity from Rooftop Solar by the year 2022

1.0 Background

1.1 As a part of Intended Nationally Determined Contributions (INDCs), India has

committed to increase the share of installed capacity of electric power from non-fossil-fuel
sources to 40% by 2030. Solar energy is one of the main source to accomplish the target of
40% of electric power from non-fossil-fuel. Government of India has set the target of
achieving 100 GW of solar power capacity in the country by the year 2022 of which 40 GW
to be achieved from rooftop solar (RTS).

1.2 The rooftop solar (RTS) plant is a system installed mainly on the roof of a building
and includes installations on open contiguous land within the area of premises wherein valid
and live electricity connection has been provided by the concern Distribution
utilities/companies (DISCOMS). Typically, 1(one) kWp RTS plant requires about 10 sq. m
area. The Solar power so generated can then be used either for captive consumption of the
premises or can be fed into the grid and be adjusted in the electricity bill. Net-metering
regulations notified by respective State Electricity Regulatory Commissions (SERCs) provide
a legal framework for such adjustment. RTS plants help DISCOMs in reducing transmission
and distribution losses as power consumption and generation are co-located. These Plants are
also useful in tackling day time peak load as solar generation profile matches such peak loads
during the day.

1.3 The Government, on 30th December 2015, approved a program „Grid Connected
Rooftop and Small Solar Power Plants Programme‟ for installation of 4,200 MW RTS plants
in the country by year 2019-20, of which 2,100 MW was through CFA and balance 2,100
MW was without CFA. The RTS projects sanctioned under this Program are under
implementation by State Nodal Agencies (SNA‟s), Solar Energy Corporation of India
(SECI), Public Sector Undertakings (PSUs) and other Government Agencies (GAs).

2.0 The Government, on 19th February 2019 approved Phase-II of „Grid Connected
Rooftop and Small Solar Power Plants Programme‟ for achieving cumulative capacity of 40
GW RTS plants by 2022. In Phase-II, it has been decided to implement the programme by
making the DISCOMs and its local offices as the nodal points for implementation of the RTS
programme. DISCOMs will play a key role in expansion of RTS as DISCOMs are having a
direct contact with end user and they provide approval for installation, manage the
distribution network and also have billing interface with rooftop owner.

3 Aim and Objectives of Phase-II of Grid Connected Rooftop Solar Programme

The key objectives of the programme are:

a. To promote grid connected RTS in all consumer segments, viz., residential,
institutional, social, Govt., commercial, industrial etc.
b. To bring DISCOMs at forefront as key drivers for rapid deployment of RTS.
c. To create awareness, capacity building, human resource development, etc.
d. To promote sustainable business models.
e. To create additional RTS capacity of 38000 MW in the country by 31.12.2022 out of
which a capacity of 4000 MW in residential sector with Central Financial Assistance
and 34000 MW in other sectors (i.e., Social, Government, educational, PSUs,

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 Statutory /Autonomous bodies, Private Commercial, Industrial Sectors etc.) by
suitably incentivizing DISCOMs
f. To promote domestic manufacturing of solar cells and module

4 Strategy

The programme will be implemented through DISCOMs. This will lead to ease of access for
the consumers. The programme provides for Central Financial Assistance (CFA) for the
household owner and Group Housing Societies to set up RTS on the rooftop of their
residence/residential campus. DISCOMs should create customer friendly environment by
making enabling provisions in their regulations and smooth approval process required for
RTS. Since the requisite expertise on solar energy for implementation of this Programme may
not be available with DISCOMs, they will be at liberty to use the services of State Nodal
Agencies (SNAs) engaged in the promotion of Renewable Energy of the respective
States/UTs.

5. Implementation arrangement

The following major issues have been identified during the Phase-I of RTS programme: -
 Multiple tenders by different agencies and subsequently considerable delay in
tendering.
 Involvement of multiple stakeholder viz. SNAs, DISCOMs, PSUs, Developers etc.
 Lack of uniform regulation/mandatory notification for rooftop solar
 Lack of uniform regulations.
 Lack of awareness among the prospective beneficiaries.

To address the above issues, and especially the fact that the consumer had to approach
multiple agencies for getting a RTS plant installed, it has been decided to implement the
programme by making the DISCOMs and its local offices as the nodal points for
implementation of the RTS programme. The major components of this phase II of the
programme are: -

 Component A: Setting up of 4000 MW of grid connected rooftop solar projects in

residential sector with Central Financial Assistance (CFA)
 Component B: Incentives to Electricity Distribution Companies (DISCOMs) based on
achievement towards initial 18000 MW of grid connected rooftop solar plants
5.1.1 Component A: Setting up of 4000 MW of grid connected rooftop solar projects in
residential sector with Central Financial Assistance (CFA): In most of the States/UTs the
residential sector enjoys benefit of subsidized electricity; therefore, beneficiaries of this
sector would not be inclined to adopt rooftop solar until some capital CFA mechanism is put
in place to reduce the cost of rooftop solar. Further, considering the fact that lower
consumption slab pays lower tariff and vice versa, the CFA for RTS is also required to be
restructured.

5.1.2 The CFA has been restructured and higher CFA up to 40 % will be given for RTS
systems up to 3 kW capacity. For RTS systems of capacity above 3 kW and up to 10 kW, the
CFA of 40% would be applicable only for the first 3 kW capacity and for capacity above 3
kW the CFA would be limited to 20 %. The residential sectors users may install RTS plant of

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even higher capacity as per their requirement and the respective SERC regulation; however,
the CFA would be limited for first 10 kWp capacity RTS plant as mentioned above.

5.1.3 For Group Housing Societies/Residential Welfare Associations (GHS/RWA) CFA will
be limited to 20% for installation of RTS plant for supply of power to common facilities. The
capacity eligible for CFA for GHS/ RWA will be limited to 10 kWp per house and total not
more than 500 kWp, inclusive of RTS already installed on individual houses in that GHS/
RWA at the time of installation of RTS for common activity.

5.1.4 For the purpose of this component of the programme, Residential RTS plant would be
the solar power system installed mainly on the roof of a residential building having an active
residential power connection from the local DISCOM, and would also include installations
on open contiguous land within the premises of the Residential building. The CFA pattern for
the residential sector will be as follows: -

Type of residential sector CFA (as percentage of benchmark cost or

cost discovered through competitive process
whichever is lower )
Residential sector (maximum up to 3 kW 40 % of benchmark cost**
capacity )
Residential sector (above 3 kW capacity 40 % up to 3 KW
and up to 10 kW capacity)* Plus 20% for RTS system above 3 kW and
up to 10 kW
Group Housing Societies/Residential 20 %
Welfare Associations (GHS/RWA) etc.
for common facilities up to 500 kWp (@
10 kWp per house), with the upper limit
being inclusive of individual rooftop
plants already installed by individual
residents in that GHS/RWA at the time
of installation of RTS for common
activity.
*The residential sector users may install RTS plant of even higher capacity as provisioned by
respective State electricity regulations; however, the CFA will be limited up to 10 kWp capacity of
RTS plant.

** Benchmark cost may be different in General Category States/UTs and Special Category States/UTs
i.e., North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir,
Lakshadweep, and Andaman & Nicobar Islands. CFA shall be on benchmark cost of MNRE for the
state/ UT or lowest of the costs discovered in the tenders for that state/ UT, whichever is lower

5.1.5 MNRE will allocate capacity for installation of RTS System in residential sector by
DISCOMS in the ensuing year. One of the parameters for allocating the capacity will be the
demand raised by the DISCOM and capacity required for fulfilment of solar RPO of the State
as notified by Ministry of Power. For this, DISCOMs will be required to submit yearly online
proposal, in MNRE‟s SPIN portal (www.solarrooftop.gov.in) by the month of March.
However, for the Year 2019-20, the DISCOMs shall be permitted to submit proposals in
MNRE‟s SPIN portal within one month from the date of publication of these operational
guidelines. Further, MNRE may ask for demand from DISCOMs directly to the Ministry,
instead of going through the SPIN portal. In addition, preference would be given to

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States/UTs who provide an additional subsidy/benefit over and above the CFA being given
by the Central Government.

5.1.6 The implementing agency i.e. Discoms or its authorised agency shall invite
Expression of Interest for empanelment of agencies for supply, installation, testing &
commissioning of RTS system in residential premises. To ensure quality and post installation
services only manufacturers of solar panels and system integrators fulfilling pre-determined
technical and financial criteria would be allowed to participate in the bidding process. The
selected bidders shall follow the quality control orders and standards for all components of
RTS system and its installation procedure, if any, issued by MNRE from time to time. All the
bidders within the price bracket of (L1 + X% of L1) shall be empanelled. The digit “X” may
be decided by the agency and should be clearly indicated while inviting Expression of
Interest. The digit ”X” shall not be more than 25. Further, if total no. of empanelled agencies
are found to be less than 5 in the acceptable band, then the DISCOM may also include those
agencies who fall in L1+(X+5)% of L1, provided they agree to match L1.
5.1.7 The beneficiary will have option of installing RTS system through any of these
empanelled vendors at net of CFA amount i.e. making payment to the vendors after deducting
the eligible CFA amount. The vendor will claim the CFA from the implementing agency. The
CFA for residential sector as stated above shall be permissible only if domestic manufactured
Solar Panels (using domestic manufactured Solar cells) are used by the
beneficiary. However, CFA will be limited up to 20% / 40% (as the case may be) of the
benchmark cost of RTS system as defined by MNRE from time to time or the rate discovered
through transparent bidding by the implementing agency, whichever is lower. In case of
RESCO model the benefit of the CFA should be passed on to the customer in the form of
reduced tariff by factoring in the CFA through competitive process. Provisions of GFR shall
be applicable for projects where Ministry is providing financial support.
5.1.8 The Implementing agency or Ministry officials or designated agency may inspect the
ongoing installation or installed plants. In case the systems are not as per standards, non-
functional on account of poor quality of installation, or non-compliance of AMC, the
implementing agency/Ministry reserves the right to blacklist the vendor. Blacklisting may
inter-alia include the following: -
a. The Vendor/Firm will not be eligible to participate in tenders for Government
supported projects.
b. In case, the concerned Director(s) of the firm/company joins another existing
or starts/ joins a new firm/company, the company will automatically be
blacklisted.
5.1.9 The participating Government owned DISCOMs will be eligible to avail advance CFA
up to 30% of the total CFA amount for the project. For private DISCOMs, CFA will be
disbursed on reimbursement basis. However, if required private DISCOMS will be eligible to
avail advance CFA upon submission of bank guarantee of an equivalent amount. More details
on release of CFA slabs is given in para 11 of these guidelines. For settlement of project
account, the implementing agency will have to submit the UC, Audited SoE, project
completion certificate and online Project Completion reports in SPIN portal of MNRE.
Implementing Agency will get service charges @ 3% of eligible CFA for implementing the
programme for the various tasks as detailed in para 10 of these Guidelines. The service
charges will be given only after completion of the project. The fund allocated in the

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programme under the capacity building head would be retained by MNRE and would be
utilized for carrying out capacity building activities only.

5.1.10 The beneficiary interested to install RTS plants will submit their application online or
to the local office of the concerned DISCOM wherever the Online Portal is not developed,
DISCOM will assist the consumer in all the activities related to sanction of CFA and
commissioning and connectivity of the RTS plants through transparently enlisted
vendors/manufacture/system integrators.

5.1.11 The entire process of receiving proposals, processing them and giving approvals
would be IT enabled except in those DISCOMs where the Online Portal is not developed.
Such DISCOMs shall avail the services of multilateral agencies nominated for each State for
development of Online Portal for them during 2019-20. The SPIN portal will be made
available to the DISCOMs to aggregate/register the demand of consumers in their operational
area.

5.1.12 The consumer will pay only the balance amount, after excluding CFA portion, to the
empanelled vendor. The CFA will be released through DISCOMs to the empanelled vendor
after commissioning and inspection of RTS plant. DISCOMs shall adhere to the suggestive
timelines for all such processes as defined in Annexure and ensure strict compliance of the
same.

5.1.13 Other than residential sector: CFA will not be available for other categories i.e.
institutional, educational, social, government, commercial and industrial sectors as the
beneficiaries in these sectors are high tariff paying consumers and adoption of solar would be
economically beneficial for them even without CFA. The power generated through RTS plant
would result in significant reduction of the electricity bill paid by them to the
DISCOMs, hence making it an economically viable solution. Although CFA is not admissible
for non-residential sectors, the DISCOMs will be incentivized for addition of RTS capacity in
these sectors too as described under para 5.2 below.

5.1.14 The capacity eligible for incentive to DISCOMs would cover the entire RTS capacity
installed including the capacity installed without CFA and with CFA. DISCOMs are required
to create enabling ecosystem for all such customers. DISCOMs shall notify guidelines for
providing time bound approvals/connectivity. The various forms/formats/procedures,
required for project implementation, shall be standardised by MNRE in consultation with
Stakeholders.

5.1.15 Method of metering: While almost all States have approved regulations of net
metering, for the purpose of this programme, the States may follow the metering method
prescribed in the Tariff policy or as approved by the respective Electricity Regulator.

5.2 Component B: Incentives to Electricity Distribution Companies (DISCOMs)

based on achievement towards initial 18000 MW of grid connected rooftop solar plants

5.2.1 Since DISCOMs are required to incur additional expenditure for implementation of
programme in terms of additional man-power, creating infrastructure, capacity building,
awareness, etc., these will be compensated by providing performance linked incentives. The
incentives may be provided for each MWp capacity of solar rooftop, added by them in their
distribution area over and above 10% of base capacity installed at the end of previous

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year. However, such incentives will not be applicable with retrospective effect. These
incentives will be provided to enable DISCOMs to create an enabling ecosystem for
expeditious implementation of RTS projects in their area.

5.2.2 The tasks taken by DISCOMs shall include but not be limited to providing dedicated
manpower for RTS implementation, rooftop assessment, bid process management to
empanel system integrators along with rates, technical studies, up gradation in ERP
system/components, providing time bound services to RTS consumers, inspection and
online monitoring of RTS plants, online database management of commissioned capacity,
consumer awareness and publicity, ensuring availability of net-meters, providing grid
connectivity, capacity building of its officers/staff etc.

5.2.3 The DISCOMs will submit the cumulative capacity of grid connected RTS plants (in
MWp) installed in their distribution area as on 31st March 2019. This will be taken as the
installed base capacity for the first year of participating DISCOMs.

5.2.4 The incentives will be given on incremental RTS capacity installed by the DISCOMs
in their distribution area from the installed base capacity (at the end of previous financial
year) within the time line of 12 months (financial year-wise, i.e. 01.04.2019 to 31.03.2020
and so on till the duration of the programme). The incentive pattern would be a progressive
one with higher incentive rates for higher levels of achievement. This is elaborated in the
following table: -

S. Parameter Incentive to be Provided

No.
For installed capacity achieved above 10 % 5% of the applicable cost** for capacit
1. and up to 15 % over and above of the install y achieved above 10 % of the installed
ed base capacity* within a financial year base capacity
2. For installed capacity achieved beyond 15 5% of the applicable cost** for capacit
% over and above of the installed base capa y achieved above 10 % and up to 15 %
city* within one financial year of the installed base capacity PLUS 10
% of the applicable cost** for capacity
achieved beyond 15 % of the installed
base capacity

*Installed base capacity shall mean the cumulative RTS capacity installed within the jurisdiction of
DISCOM at the end of previous financial year. This will include total RTS capacity installed under
residential, Institutional, Social, Govt., PSU, Statutory/ Autonomous bodies, Private Commercial,
Industrial Sectors etc.

** Applicable Cost is the applicable benchmark cost of MNRE for the state/ UT for mid-range RTS capacity
of above 10 kW and upto 100 kW or lowest of the costs discovered in the tenders for that state/ UT in that
year, whichever is lower

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5.2.5 The incentive mechanism has been illustrated in the following table

Discoms Installed base Achievement Percentage Capacity Capacity

capacity (MW) under programme Achievement of eligible for 5% eligible for 10%
(MW) installed base incentives incentives
capacity (%) (MW) (MW)

A 100 MW 10 MW 10% Nil Nil

B 100 MW 12 MW 12% 2 MW Nil
C 100 MW 20 MW 20% 5 MW 5 MW
D 100 MW 30 MW 30% 5 MW 15 MW

Note: The capacity eligible for incentives by DISCOMs would cover the entire capacity installed including the
capacity installed without CFA and with CFA

5.2.6 The Incentives to the DISCOMs would be available only for the addition of initial
18000 MW RTS capacity in the country after launch of this programme. In case, higher
capacity is achieved by the DISCOMs leading to entitlement for higher incentive slab of
10%, the total incentives to the DISCOMs would be limited to the financial outlay available
for incentive under the programme, irrespective of the total capacity achieved under the
programme by any particular DISCOM.

5.2.7 As the incentives are proposed for various reasons mentioned in 5.2.1 and 5.2.2, the
above incentives proposed may not be a part of Tariff Determination & Tariff Rationalisation
process of SERC /JERC.

6.0 Technology

6.1 The solar photovoltaic technology (including all forms of photo voltaic) based RTS
projects for generation of electricity will be deployed under the Programme. Project
proponents to adhere to the national/ international standards specified by MNRE from time to
time. For subsidized projects (i.e. for residential projects detailed in para 5.1 above) only
indigenously manufactured PV panels (both cells and modules) should be used.

6.2 Grid interactive SPV power plants, inverters, meters, cables, mounting structures and
other balance of systems etc. should have the minimal technical requirements and quality
control standards as prescribed by MNRE from time to time. The mechanical structures,
electrical works including power conditioners/inverters/charge controllers/maximum power
point tracker units/distribution boards/digital meters/switch gear/net-meters/storage batteries,
etc. and over all workmanship of the RTS plants/ systems must be warranted against any
manufacturing/ design/ installation defects for a minimum period of 5 years. Fulfilment of the
warranty obligations of the complete Solar system shall rest with System integrator who in
turn may claim the same from the component manufacturers.

6.3 Online monitoring system shall be provided by DISCOMs to ensure satisfactory

functioning of all the RTS plants.

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7 Management

7.1 The primarily responsibility of monitoring and reporting will be with the
implementing agencies i.e. DISCOMs and they may carryout 3rd party inspection through
National Monitors/Consultants, for ground verification/performance evaluation on random
basis.

7.2 MNRE will hold regular review meetings to assess the implementation of the
programme. MNRE will also do the physical sample inspection of the installed RTS plants
for which CFA or Incentive has been claimed by the DISCOMs. Sample Inspection may be
done by the officials of MNRE or any other designed Central Government agency.

7.3 The Ministry has developed the SPIN portal for uploading all details of RTS projects.
Key features of installed plants, including geographical location, latitude- longitude, installed
capacity, name & contact details of developer, project cost, etc. shall be uploaded by
DISCOMs on this Portal. Ministry has also initiated process for geo-tagging of these projects
with assistance of ISRO. Implementation Agencies have to submit progress reports from time
to time to MNRE through SPIN.

8 Roles and responsibilities of stakeholders

8.1 Ministry of New and Renewable Energy: -

i. MNRE shall allocate capacity for the ensuing year to different DISCOMs on the basis
of demand, capacity required for fulfilment of solar RPO, any additional
subsidy/benefit being given by the State/UT over and above the CFA being given by
the Central Government, performance of the State/UT/DISCOM in the past, etc.
ii. MNRE will release funds to the DISCOMs for disbursement of CFA to the vendors
installing RTS plant in the residential sector.
iii. The participating Government owned DISCOMs may avail advance CFA of up to
30% of the total CFA amount for the project. For private DISCOMs, CFA will be
disbursed on reimbursement basis. CFA would be released on reimbursement basis
for the capacity installed from time to time without any need to wait for the entire
sanctioned capacity. Funds may be released on receipt of Project Installation Reports
in prescribed formats on SPIN portal.
iv. MNRE will release eligible incentive to the DISCOMs based on their performance in
the last financial year.
v. MNRE will do the physical sample inspection of the installed RTS plants for which
CFA or Incentive has been claimed by the DISCOMs. Sample inspection may be done
by the officials of MNRE or any other designed Central Government agency.
vi. To provide necessary assistance to DISCOMs in respect of Portal development and its
integration with SPIN portal of MNRE, capacity building of DISCOM officials,
updation of billing software, etc., if so, required by them.
vii. Undertake capacity building and public awareness campaigns through print and
electronic media.

8.2 DISCOMs:

i. Create a RTS cell at each Division level headed by the Executive Engineer and the
respective Sub-Divisional Officer shall act as nodal officer for implementation of
RTS projects in his operational area.

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 ii. Develop dedicated online portal for grid connected RTS projects. This portal shall be
integrated with MNRE SPIN portal for which assistance may be provided by MNRE
to respective DISCOMs.
iii. Empanelment of agencies for design, supply, installation, testing & commissioning of
RTS system in residential premises lying under their jurisdiction as described in
Paragraph 5.1.6 above by floating of Expression of Interest either itself or through a
designated agency
iv. Notify time bound procedure for implementation of the programme.
v. Notify cost of metering arrangements, related connectivity components and other
charges and ensure availability of appropriate meters.
vi. No CEIG inspection is required for RTS plants up to 500 kVA capacity.
vii. Undertake capacity building programs for DISCOM officers for RTS projects on
regular basis.
viii. Undertake consumer awareness campaigns through print and electronic media,
developed guidebook/handbook.
ix. Inclusion of appropriate metering settlement in ERP system and billing software.
x. Develop time bound grievance redressal mechanism.
xi. Submit the cumulative capacity of grid connected RTS plants (in MWp) installed in
their distribution area first time as on 31st March 2019 and thereafter on 31st March
every year for calculating the applicable incentive payable to them by MNRE.
xii. DISCOM will take utmost care so that there is minimum loss of solar power due to
grid failure during daytime or from any other reasons within their jurisdiction.
xiii. The project commissioning timeline for the residential sector shall be fifteen months
from the date of sanction from MNRE. For this, the implementing agencies may
specify a cut-off date after which no project would be allocated so as to allow
sufficient time for completion of already allocated projects. Benchmark cost
prevailing at the time of commissioning of the project shall be applicable for
calculation of CFA. The implementing agencies shall inform MNRE regarding
capacity commissioned within stipulated timeline and submit documents to the
Ministry within 45 days of completion of project time line. After 45 days, deduction
of service charges at the rate of Rs. 1000/- per day would be levied on the project. In
case the submission of project documents is delayed by more than 90 days from the
date of completion timeline/last day of financial year, no service charges would be
provided for the said project.

8.3 Empaneled Vendors for supply and installation of RTS projects

i. Install RTS plant within the timeframe decided by the DISCOMs.

ii. For projects covered under CFA, only indigenously manufactured PV panels (both
cells and modules) should be used.
iii. Vendors for supply and installation of the RTS shall establish a service centre in each
District. In case if it is not economically viable for an individual vendor then Group of
vendors can establish service centre in each District. Their contact details will be
made available on the website of the DISCOMs.
iv. These service centres have to provide services to the RTS owners within the timelines
decided by the DISCOMs, free of cost for first five years (Warranty period) of
commissioning of the RTS. Non-performing/Under-performing PV Panels will be
replaced free of cost in the warranty period. Non-compliance of the service standards
by the vendor will make it ineligible for future work orders by the Government.

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9. Business models

Various business models in accordance with the prevailing legal framework are covered
under the programme such as CAPEX, RESCO, rent a roof/lease model, community model,
utility model, through a SPV having share of Utility, plug-in RTS model and any other model
as specified by respective State Govt. Policy/Regulations. RTS systems with or without
battery storage are covered under the programme.

In addition, hybrid systems, e.g., solar rooftop PV- wind hybrid, solar rooftop PV- solar
thermal hybrid, solar rooftop PV- biomass hybrid etc. are also covered for which the capacity
of the PV modules installed on rooftop of buildings within the campus will be considered for
CFA/incentive calculations. However, this won‟t be applicable for cases wherein the
developer/implementing agency has availed the CFA for solar module from the other
components viz. wind, biomass etc.

10. Capacity building/awareness activities:

An amount of Rs. 66 Crore (i.e. 1 % of the amount allocated for CFA sector) has been
allocated under the programme for capacity building /awareness activities. This fund will be
retained by MNRE for promoting capacity building activities. These activities can be
implemented directly by MNRE and/or in coordination with implementing agencies. The
implementing agency (DISCOM) will submit detailed proposal /communication plans
towards various activities for conducting such capacity building/awareness activities for
consumers. Funds will be released in three phases, i.e., up to 40 % in advance and balance up
to 60 % after completion of the activities, submission of activity reports, utilization
certificates and audited statement of expenditure. DISCOM may be at liberty to use the
existing infrastructure of State Nodal Agencies of Renewable Energy of the respective
States/UTs (SNAs) for the same. The admissible CFA for conducting the capacity building
programme e.g. National, International or State level by the implementing agency may be
restricted as per the norms set by the I&PA/HRD Division.Any advance to private DISCOM
will be released after submission of bank guarantee of requisite amount.

11. Service charges:

An amount of Rs. 198 Crore (i.e. 3 % of the amount allocated for CFA sector) has been
allocated under the programme towards the service charges of the programme. The service
charges will essentially cover but not be limited to the following: -

 demand aggregation activities,

 creation of working RTS cell in DISCOM
 bid process management
 implementation
 availability and streamlining the process of net-metering /billing
 inspection, monitoring, development of online portal
 training of DISCOM officials
 awareness programs for proliferation of rooftop solar PV projects
 creation and operating project management cell in MNRE etc.

DISCOMs may also utilize existing infrastructure of SNAs or may also implement the
program through SNAs. In such cases, service charges may be appropriately divided between

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the two agencies. However, projects would be sanctioned to DISCOMs only and SNA would
be acting as the supporting agencies for DISCOMs. This service charge may also be used for
3rd party verification of the projects by MNRE or its designated agency (say State Nodal
Agencies/ Govt. departments/PSUs/DISCOMs etc.) wherever required.

12. Pattern of release of CFA/incentives: -

Advance 2nd instalment 3rd Instalment

Release of CFA in 30 % of CFA* After 30 % of CFA* after Balance 40 % after

residential sector issuance of work order completion of 30% of completion of
/empanelment of system the sanctioned sanctioned capacity in
integrators capacity, submission of the sanctioned timeline,
online project submission of online
completion report and PCR, UC, Audited
utilisation certificates SoE, Project
etc. Completion
Certificates etc.
Incentives Eligible incentives after submission of achievement details, i.e.
Cumulative achievement (in MW) in the preceding FY ending
Capacity of the RTS system installed the FY 2019-20,2020-21, 2021-
2022 along with list of projects in SPIN portal along with
Undertaking on project completion and sample inspection by 3rd party

* CFA will be calculated @ 20% of benchmark cost or cost discovered through tender
whichever is lower for the purpose of advance to DISCOMs

13. Suggestive expectation from State Governments

 RTS capacity be permitted up to 100% of connected load

 Distribution Transfer (DT) capacity be increased to avoid denial of permission for
setting up RTS on this ground
 Mandating installation of rooftop solar projects on Government buildings and new
residential buildings
 Banking of solar power may be permitted for 12 months without any banking charges
 Monitoring of sanctioned RTS capacity and expedite commissioning of the allotted
capacity
 Timely and correctly submission of project proposals and project commissioning
reports for timely release of funds

14. Interpretation of the Guidelines

14.1 In case of any ambiguity in interpretation of any of the provisions of these Guidelines,
the decision of MNRE shall be final.

14.2 The Guidelines may be reviewed from time to time based on the experience gained
from the implementation of the programme and necessary modifications would be
incorporated after getting approval of Minister, NRE.

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 Annexure
Suggestive Operating Procedures for Installation and Metering Connection of Grid
Connected Solar Rooftop PV Systems by DISCOMs

ACTIVITY RESPONSIBILITY TIMELINE

(Max Working Days)

Submission of Application CONSUMER Zero Date

Acknowledgment of Application by DISCOM
02
DISCOM
Site Verification / Technical Feasibility DISCOM
& issuance of Letter of Approval (LOA) 15
/ Termination [1]
In-Principle Approval for CFA DISCOM 10
DISCOM
Execution of Metering Agreement & 15 – 20
CONSUMER
DISCOM, Empaneled
Vendor
Installation of Rooftop Solar System 90 - 180
&
CONSUMER
15
Meter Procurement Intimation CONSUMER (prior intimating DISCOM on
system readiness)
CONSUMER 90 – 180
Submit Work Completion Report /
& (from LOA)
Certificate
Empaneled Vendor (depending upon capacity)
CEIG
Inspection by CEIG (if applicable) 15 -20

Issuance of Safety Certificate 5 – 10

CEIG (if applicable)
Intimation to Install Meter 7 - 10
CONSUMER
Inspection by DISCOM, Installation of
15 – 20
Meter [2] and Commissioning of the
[3] (after CEIG approval)
System DISCOM
Inspection for Release of CFA [4] DISCOM 7 -10
Release of CFA DISCOM 5 -10
30
Billing Process
DISCOM After synchronization with Grid

[1]
DISCOM to communicate to deficiencies to Consumer and provide an opportunity to resolve them
[2]
DISCOM may provide a window of 15 days for Consumer to resolve deficiencies found during inspection
[3]
Joint Inspection by CEIG (if applicable) and DISCOM can reduce the timelines substantially. If DISCOM has no stock of
meters, Consumer will purchase the same upon intimation by DISCOM. Inspection dates to be provided within 7 days by
CEIG (if applicable) and DISCOM from the date of receipt of request for inspection sent by Consumer
[4]
Joint Inspection by CEIG (if applicable) and DISCOM can reduce the timelines substantially

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 File No.318/27/2021-Grid Connected Rooftop

Government of India
Ministry of New and Renewable Energy
Grid Connected Rooftop Solar Division

Block No.14, CGO Complex,

Lodhi Road, New Delhi 110003,
Date: 1st September 2021

OFFICE MEMORANDUM

Subject: Amendment in Implementation Guidelines of Rooftop Solar Programme Ph-II.

The implementation Guidelines of Rooftop Solar Programme Ph-II were issued by the
Ministry on 20 August 2019 and subsequently amendments were issued from time to time to
ease implementation of the Programme.

2. Representations have been received from the implementing agencies to allow empanelment
of sufficient number of vendors to allocate and complete installation of sanctioned RTS
capacity. The issue was examined in the Ministry and following amendment has been made
in the implementation Guidelines of Rooftop Solar Programme Ph-II:

Existing Clause in Phase-II guidelines Amended Clause

5.1.6   ……… All the bidders within the 5.1.6   ……… All the bidders within the price
price bracket of (L1 + X% of L1) shall be bracket of (L1 + 25% of L1) shall be
empanelled. The digit “X” may be empanelled on acceptance of L1 price
decided by the agency and should be matching. If total capacity allocated/accepted
clearly indicated while inviting by these empanelled bidders is less than tender
Expression of Interest. The digit” X” capacity, the option of L1 price matching will
shall not be more than 25. Further, if total be extended to other bidders in the ascending
no. of empanelled agencies are found to order of price quoted by them  till total tender
be less than 5 in the acceptable band, capacity is allocated/ accepted by bidders or all
then the DISCOM may also include those bidders have been given option for L1 price
agencies who fall in L1+(X+5)% of L1, matching, whichever is earlier.
provided they agree to match L1.

2. This issues with the approval of competent authority.

(Aditya Narayan Prajapati)

Scientist-B, RTS
E Mail: aditya.np@gov.in