Generation Based Incentives for grid interactive solar projects

With a view to develop and demonstrate technical performance of grid interactive solar power generation, achieve reduction in the cost of the grid connected solar systems and the cost of solar power generation in the country, Ministry of New and Renewable Energy (MNRE) through Indian Renewable Energy Development Agency (IREDA) is providing generation based incentives in addition to the feed-in-tariff being provided by the state utilities. Generation Based Incentives (GBI) is also being offered to wind projects, which are not getting accelerated depreciation.

• Demonstrate the technical performance of grid interactive solar power projects. Incentivize higher efficiencies with the help of a generation/outcome based incentive. Provide a framework for transition from an investment based incentive to outcome based incentive.

Under this programme, the MNRE would provide incentive for installation of up to 50 MW capacity solar power projects in the country and a maximum of 10 MW in a given State. Further, any project developer would be allowed to set up a maximum aggregate capacity of 5 MW, either through a single project or multiple projects of a minimum capacity of 1 MW each provided the projects are commissioned before the cut-off date. The MNRE guidelines have emphasized that preference/ priority would be given to those projects, which are proposed in the States that have approved and/ or notified tariff for solar power. Preference/priority is given to projects, which are proposed in the states that have approved and or notified tariff for solar power.

Measuring, collating and sharing. Providing the generation details to IREDA or other suitable measure.

50 MW GBI scheme has been discontinued as it was offered for a limited period and capacity. The response from prospective developers was encouraging and large number of applications were received to claim the same before the expiry date. Currently, the solar projects are being allotted through reverse bidding process by National Vidyut Vyapar Nigam Limited,which has resulted in attractive price discoveries on account of significant discounts being offered by the bidders.