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Cabinet Nods To RTS and Kusum Scheme

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The Cabinet Committee on Economic Affairs has approved phase-II of grid-connected rooftop solar program for achieving a total capacity of 40,000 MW from rooftop solar projects by 2022. In this regard, total central finance support to the tune of more than INR 11,000 crore will be granted to the residential sector. In addition, the Cabinet has also approved the launch of Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme. This scheme is directed towards providing financial and water security to the farmers of India.

Rooftop Solar (RTS) Projects

CFA for the residential sector will be 40% for RTS systems up to 3 kW capacity and 20% for RTS systems with 3 kW- 10 kW capacities. For group housing societies, it will be 20% for RTS plants for supply of power for common areas. No central financial assistance will be available for institutional, educational, social, commercial, government establishments.

In addition, performance-based incentives will be provided to Discoms based on RTS capacity achieved. The incentives will be limited to the first 18000 MW capacity addition. Further, Discoms and its local offices shall be the nodal points for program implementation. It is expected that 38 GW of rooftop solar plants under phase-II by 2022 shall reduce CO2 emission of about 45.6 tonnes per year.

KUSUM Scheme

The KUSUM scheme aims to increase solar installations by 25,750 MW by 2022, with total financial assistance of more than INR 34,000 crores. The scheme calls for installation of 17.5 lakh solar-powered agricultural pumps, 10,000 MW of decentralized ground-mounted grid-connected renewable power plants, and solarisation of 10 lakh grid connected solar-powered agricultural pumps.

Renewable power plants with capacities 500 kW – 2 MW will be set up by individual farmers, co-operatives, panchayats etc on their lands. The power generated by these plants will be purchased by the Discoms at SERC approved feed-in-tariff rates. For agricultural pumps, individual farmers will be supported to install as well as solarise solar pumps up to 7.5 HP capacity. For this, CFA of 30% of benchmark cost or tender cost, whichever is lower, will be provided.

These efforts by the government should go a long way in improving solar installations and acceptance across the country.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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