Solar Off-Grid Scheme
Scheme of MNRE for Promotion of
Solar Off-Grid (Photovoltaic & Thermal)
& Decentralised Applications
Under JNNSM
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
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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.
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
2
2
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
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
3
3
Financing pattern
20%* Promoters’ Contribution
30%* Capital Subsidy
50%* Interest Subsidy
100%* TOTAL
* Percentage of Project Cost
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
4
4
Channel Partners
• Renewable Energy Service Provider Companies
(RESCOs)
• Financial Institutions (acting as Aggregators)
• Financial Integrators
• System Integrators
• Programme Administrators
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
5
5
Accreditation of Channel Partners
MNRE
Seeking
Accredition
Accreditation methodology by MNRE
Grant of
Accredition
Channel partner
(other than Bank / FI)
Rating by a Rating Agency may be considered for
Accreditation of Channel Partners
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
6
6
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
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
7
7
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
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
8
8
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 @ 2% p.a.
• Scheduled commercial banks & NBFCs to lend to borrowers
@ 5% p.a. for PAC approved projects
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
9
9
Process Flow
MNRE
IREDA
CUSTOMER
PLI
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
10 10
Interest Subsidy: Refinancing Partners
MNRE
IREDA
NABARD
NHB
SIDBI
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
11 11
Interest Subsidy: Refinancing partners
IREDA shall provide funds received from MNRE
to refinancing institutions for loans granted by them
NABARD
NHB
SIDBI
RRBs
Regional Rural Banks
HFCs
Housing Finance Companies
SFCs
State Financial Corporations
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
12 12
Interest Subsidy
MNRE
IREDA
Bulk Finance
IREDA
Refinance
SIDBI
NHB
NABARD
NBFCs
@2%
SCBs @2%
SFCs? @2%
HFCs @2%
RRBs @2%
Borrowers
@5%
Borrowers
@5%
Borrowers
@5%
Borrowers
@5%
Borrowers
@5%
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
13 13
Capital Subsidy: Credit Linked
• IREDA to make available, up front, the funds
received from MNRE, to primary lending
institutions
• PLI to credit borrower’s account with the capital
subsidy amount after confirming successful
implementation of project
• PLI to provide Utilisation Certificate to IREDA
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
14 14
Capital Subsidy
MNRE
IREDA
Primary Lenders
Borrowers
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
15 15
Capital Subsidy: Non-Credit Linked
• MNRE to make available Capital Subsidy
for PAC approved projects
through State Nodal Agencies
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
16 16
Refinance
•
Refinance Agreement between IREDA and
Primary Lending Institution
•
Refinance from IREDA @ 2% p.a.
•
Primary lending institution to provide the loan
@ 5% p.a. incorporating Interest Subsidy
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
17 17
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
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
18 18
Thank You
Indian Renewable
MNRE’sEnergy
Solar Off-Grid
Development
Scheme
Agency Ltd.
April 26,
May
2010
6, 2010
19 19