What is Achievement Linked Incentive Scheme

Achievement linked incentive scheme was launched by the MNRE in May 2016 that promises an incentive on the total project cost, in case the full target is achieved. It is like a bonus paid from an employer to an employee, in case he achieves his targets. The Indian government inreased the budget on grid connected rooftop and small solar power plants from INR 600 crores to INR 5000 crores, in conjunction with an incentive scheme based on the performance.

To avail the benefits of this scheme – all state/ UT ministries will have to make an assessment of their respective rooftop areas, their electricity bills, based on which a financial evaluation would be done and the department would be entitled to an incentive. This scheme will hold good during the entire period of implementation of the rooftop program.

Here is a glimpse of the incentives:

Source: MNRE

Not only this, but cash awards to the along with certificates and accolades worth INR ~ 5 crores, would also be rewarded to the parties engaged in grid connected rooftop installation. For more details please visit the MNRE website.

Implementation of Achievement Linked Incentive Scheme

It is definitely a good move by the government of India, to promote rooftop solar in the country. Incentives play a major role in propagating an idea. Solar is getting imperative for the whole world at large and India with its rising power crisis and increasing power bills is no exception to this story. We have been hearing about the great milestones our country is already achieving – from the Cochin’s solar airport, to the mega rooftop installation in Punjab or the Delhi metro railways running on solar power, the list goes on.

Delhi Municipal Corporation to Go Solar!

After the recently announcing the Delhi metro trains to run on solar power Delhi is blazing all guns on solar, with the latest being the Municipal Corporation of South Delhi going solar! A memorandum of understanding was signed for two years by SECI, for installing rooftop solar worth 10MW on 440 building. The project will be launched under achievement linked incentive scheme, wherein the corporation would be entitled to a subsidy of 25%.

A saving of INR 6 crores on electricity bills is expected from this project and excess power will be sold to the discoms. A total of 20 MW of solar installation will be done, with 10MW coming from the rooftops and the remaining 10 MW from the ground installations. The power generated from the rooftops will be used by the municipal corporation and that from the ground installations would be sold to the discoms. The work is expected to be completed in two phases. The rooftops is promised to be given on a zero lease rental basis. SECI will be responsible for planning, supplying, installing, testing, commissioning, and O&M of grid connected rooftop solar plants.

It is overwhelming to see the country’s response so far and the Indian Capital is definitely setting a great example for the country at large.