The Ministry of New and Renewable Energy on 3rd October 2022, has clarified that the CFA applicable under RTS Programme Phase-II of MNRE will also be applicable for solar plants setup under VNM arrangement, subject to following conditions:
- CFA would be available only for residential consumers of rural areas,
- Considering that connected load of a residential consumer in rural areas would generally be not more than 3kW, each participating consumer under VNM would be allowed to install capacity upto 3 kW and avail subsidy available under RTS Programme Ph-II.
- Solar plant installed under VNM shall supply power to the same distribution sub-station (HT or LT side) through which the participating consumers are connected. This will ensure reliable power supply to the participating consumers and other benefits of co-locating power generation and consumption.
The Ministry is implementing Rooftop Solar (RTS) Programme Phase-II and providing CFA for installation of RTS plant in residential sector by individual household or by GHS/RWA. Some of the States and UTs are having provision of Virtual Net Metering, wherein a group of consumers of a Distribution company can install a solar plant within the area of the same company and avail benefits of net metering against the solar powered into the grid from that solar plant.
However, clarification has been sought by different stakeholders on the applicability of CFA available under RTS Programme Phase-II for residential consumers installing solar plants under VNM arrangement therefore, it is clarified that the CFA applicable under RTS Programme Phase-II of MNRE will also be applicable for solar plants setup under VNM arrangement.
