As observed there were major issues encountered in Phase-I of RTS programme such as Delay in tendering, involvement of multiple stakeholder, Lack of uniform regulation/awareness and the fact that the consumer approach multiple agencies for getting a RTS plant installed.
Hence they have implemented the programme by making the DISCOMs and its local offices as the nodal points for implementation of the RTS programme. There 2 major components in phase II programme while component A has already been discussed in our previous blog which can check here.
Let’s discuss Component B in this blog:
Since DISCOMs are required to incur additional expenditure for implementation of programme in terms of additional infrastructure, man-power, creating capacity building, awareness many more which are compensated by rendering performance linked incentives.
These incentives will be provided to enable DISCOMs to create an enabling ecosystem for expeditious implementation of RTS projects in their area.
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.
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).
| S.
No. |
Parameter | Incentive to be Provided |
| 1. | Installed capacity gained above 10 % and up to 15 % and above of the install
ed base capacity within a financial year |
5% of the applicable cost for capacity achieved above 10 % of the installed
base capacity |
| 2. | For installed capacity achieved beyond 15
% over and above of the installed base capa city* within one financial year |
5% of the applicable cost** for capacit y achieved above 10 % and up to 15 % of the installed base capacity PLUS 10
% of the applicable cost** for capacity achieved beyond 15 % of the installed base capacity |
Installed base capacity- The cumulative RTS capacity installed within the jurisdiction of DISCOM at the end of previous financial year.
Applicable Cost- The 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
The incentive mechanism has been illustrated in the following table
| Discoms | Installed base capacity (MW) | Achievement under programme (MW) | Percentage Achievement of installed base capacity (%) | Capacity eligible for 5% incentives (MW) | Capacity eligible for 10% incentives (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 |
The solar photovoltaic technology (including all forms of photovoltaic) based RTS projects for generation of electricity will be deployed under the Programme.
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 power system shall rest with System integrator who in turn may claim the same from the component manufacturers.
An amount of Rs. 66 Crore (i.e. 1 % of the amount allocated for CFA sector) has been giving under the Programme for capacity building /awareness activities.
An amount of Rs. 198 Crore (i.e. 3 % of the amount allocated for CFA sector) has given under the Programme towards the service charges of the Programme.
Pattern of release of CFA/incentives: –
| Advance | 2nd instalment | 3rd Instalment | |
| Release of CFA in residential sector | 30 % of CFA After issuance of work order
/empanelment of system integrators |
30 % of CFA after completion of 30% of the sanctioned capacity, submission of online project completion report and utilisation certificates etc. | Balance 40 % after completion of sanctioned capacity in the sanctioned timeline, submission of online PCR, UC, Audited SoE, Project
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
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.
