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 100KWpper 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 MNRE Grant of Accredition Seeking Accredition Accreditation methodology by MNRE Channel partner (other than Bank / FI) 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 Seeking Project Approval MNRE PAC Grant of 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 @ 2% p.a. • Scheduled commercial banks & NBFCs to lend to borrowers @ 5% p.a. for PAC approved projects

10. Process Flow

11. Interest Subsidy: Refinancing Partners

12. Interest Subsidy: Refinancing partnersIREDA 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 borrower’s 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 @ 2% p.a. • Primary lending institution to provide the loan @ 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