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Goverment Support

Sr. No. Solar Collector type Capital subsidy / Collector area 
(Rs./ sq.m.)
1 Evacuated Tube Collectors (ETCs) 3000
2 Flat Plate Collectors (FPC) with liquid as the working fluid 3300
3 Flat Plate Collectors with air as the working fluid 2400
4 Solar collector system for direct heating applications 3600
5 Concentrator with manual tracking 2100
6 Non- imaging Concentrators 3600
7 Concentrator with single axis tracking 5400
8 Concentrator with double axis tracking 6000

1. The capital subsidy / unit collector area, as given above, is based on 30% of the benchmark costs or Rs. 5400 / m2 of installed concentrator area which ever is less. Capital subsidy would be computed based on the applicable type of solar collector multiplied by the collector area involved in a given solar thermal application/project.

2. Besides the capital subsidy as proposed above, the pattern of support could include a soft loan at 5%, as under:

Soft loan @ 5% interest would be available, inter alia, for balance cost which may comprise installation charges, cost of civil work for large systems and costs of accessories (viz. insulating pipeline, electric pump, controllers and valves, additional water tanks, blower for air heating systems, drying trays for solar dryers, steam system, etc.), etc.

UNDP Support

(Updated on 28th October, 2013)

Demonstration Projects

» 15% of system cost to a maximum of Rs. 30 lakhs (Revised on 11.10.2013)
» Maximum 30-60 projects with 15,000 sq. m. of CST area. For each application/ technology / sector, the number may be restricted to a few)

These will be those projects which are different from conventional CST based systems already in promotion for last many years. Projects with emerging technologies/ newer applications or improved version of existing technologies and innovative ideas leading to improved performance/ durability/ user friendly techniques or reduction in cost etc will come under this category. Justification is required to be given by the beneficiary in their covering letter as well as in the proposal for considering it as a demonstration project by PMU of the project. The support is available to share owner's expenses for following which otherwise also is to be done in MNRE programme to avail the subsidy:

Preparation of Feasibility report for project with CST area below 750 sq. m. and Detailed Project Report (DPR) for project above 750 sq. m.
Performance monitoring of the system for minimum 2 years with instruments & equipment procured and installed (2 Pyranometers with & without shading ring, pressure transducer, temperature sensors, steam/ thermic fluid/hot water flow meter & a control panel for on-line monitoring will be the minimum requirement which will be the responsibility of supplier)

Operation & maintenance of the system (AMC for atleast 4 years after completion of warranty period will be necessary except in cases where some amount is earmarked by the organization for keeping the system functional & well maintained)

Part support could be utilized for installation of system subject to meeting the above requirements

Replication projects

» Rs. 4 lakhs for each project
» 60 to 120 projects with 30,000 sq. CST area

Projects not coming under demonstration category will be considered as replication projects. The support is available to share owner's expenses for following:

Providing performance & fuel savings data on regular basis with essential equipment installed (Temperature sensors, pressure gauge/transducer & fluid flow meter will be the minimum requirement which will be the responsibility of supplier)

Operation & maintenance of the system (AMC for atleast 2 years after completion of warranty period will be necessary except in cases where some amount is earmarked by the organization for keeping the system functional & well maintained)

Part support could be used for installation of system subject to meeting above requirements

Project size of below 250 sq. m. but not less than 90 sq. m.

» Rs. 2 lakhs for each project for providing performance & fuel savings data on regular basis and Operation & Maintenance of the system

ESCO mode projects

» 10% of the cost to a maximum of Rs. 15 lakhs for each project in addition to above. Support available for all the above projects (demonstration/ replication/other projects) may be combined with this support and provided to implementers, if the projects are done in ESCO mode

Preparation of Feasibility Report/ DPR

» PMU of the project will help preparing the feasibility report/ DPR for beneficiaries, if required, before generation of proposals through some consultant subject to sharing of the cost involved by private bodies to a maximum of Rs. 25,000. To government bodies/ PSU, it may be fully borne by PMU. Maximum support for a DPR could be up to Rs.1 lakh.

Repair & Renovation

» Up to Rs. 15 lakhs for 5 years old systems is available for repair & renovation subject to the condition that equal amount is spent by the beneficiary. A proposal covering following information would be required to be submitted for availing this support:

Name of establishment with complete postal address, telephone, fax number , mobile & e-mail address for correspondence purpose.
Type & size of solar technology installed
MNRE sanction letter No & Date with approved cost of the system
Place of Installation
Date of commissioning of the system
Name of manufacture who installed the system
Application for which the system is being used
Since when the system is lying non-functioning?
Reasons for lying non-functioning
Whether manufacturer who installed the system was approached? If yes, response from him.
Major components requiring repair/ replacement
Details of supplier identified for repair of system
Budget estimate on repair of system (Details to be provided in a separate sheet with quotation from supplier attached)
Budget sought from UNDP-GEF project as per scheme
Commitment share from beneficiary. Letter of commitment to be indicated in covering letter)
Expected date of getting the system repaired

Release & sanction of UNDP-GEF support

50% could be released in advance based on Bank Guarantee for private bodies/ Indemnity bond for registered institutions subject to issue of Sanction/ 'In Principle' approval letter from MNRE. Rest will be released in 1-2 installments after commissioning of the system subject to satisfactory performance of the system and submission of requisite documents+. For repair/ renovation no sanction/ In Principle Approval is required. A request letter for sanction & release of UNDP-GEF support from the beneficiary especially for demonstration project and from implementer in case of ESCO projects would be required to be submitted to PMU, UNDP-GEF CSH project, MNRE alongwith a copy of the proposal and Sanction/'In Principle' letter issued by the Ministry. For projects in ESCO mode, a copy of Detailed Project Report giving following documents/ information would be required.

Copy of MoU signed with beneficiary on stamp paper
Details of investment to be made by ESCO, beneficiary/ any other in beginning
Whether equity of various parties or availing loans
If loans, details to be provided with name of FIs providing loans
Monthly/ quarterly installment to be paid by beneficiary on savings
Time period of agreement with beneficiary
An Affidavit that system installed will not be dismantled without the permission of MNRE

Note : The above support is in addition to the subsidy available from MNRE for installation of the systems under off-grid scheme of JNNSM & will be calculated on the basis of sanctioned cost by the Ministry. In addition, depreciation benefit is available to profit making bodies. The support is presently for the year 2013 and may be reduced gradually in subsequent years.

+ Details of equipment, copy of AMC with supplier/budget earmarked for O&M, feasibility report/DPR, data logbook, fuel savings etc to be submitted as the case may be.

* For any query DPM, Project Management Unit, UNDP-GEF Project, MNRE may be contacted at pankaj.kumar74@nic.in.or at 011-24363638.