No subsidy is given by the Government on the capital investment for setting up grid-connected solar power plants. These are installed on build own, operate basis, and the solar project developer is paid a feed-in tariff for the power injected into the grid. However, under the Rooftop Photovoltaic and Small Solar Power Generation Programme (RPSSPGP) which was a one time 100 MW scheme, a generation based incentive was provided.
Under the Off-grid and Decentralized Solar Applications scheme of Jawaharlal Nehru National Solar Mission (JNNSM), Rs 399.18/- crores were released by the Ministry during 2012-13 for sanction and installation of Off-grid SPV power plants and systems in the country.
The Ministry, under the Off-grid and Decentralized Solar Applications scheme of Jawaharlal Nehru National Solar Mission (JNNSM) provides a subsidy of 30% of the project cost ranging from Rs. 30/- to Rs. 63/- per watt peak for off-grid SPV power plants having module capacity upto 100 kWp depending on their capacity and configuration in general category States. In Special Category States, UT Islands and districts with international borders, the Ministry provides 90% of the cost of the off-grid SPV power plants limited to in the range of `90/- and ` 189/- per Wp for installation by Central and State Government Ministries, Departments and their organizations, State Nodal Agencies and Local Bodies.
State Nodal Agencies submit the projects in their respective State to the Ministry for availing the central financial assistance for installation of off-grid solar PV systems/power plants. The Ministry sanctions the project proposals which are found complete in all respect as per the guidelines of the programme and availability of funds.