India’s One Lakh MW Solar Power Addition Plan by 2022 Steps Taken and The Progress So Far

India’s One Lakh MW Solar Power Addition Plan by 2022 Steps Taken and The Progress So Far

India is moving ahead with its plans to add One Lakh solar power capacity under its National Solar Mission Target. The Modi Government soon after taking over in May 2014 had revised the National Solar Mission target of Grid Connected Solar Power projects from 20,000 MW by 2022 to 1,00,000 MW by 2022.

A total investment of around Rs. 6,00,000 crore has been estimated to achieve the target of 100 GW.

Solar power projects in India are being installed by both, private and public sector companies. Banks and Financial Institutions have given green commitments to finance upto 78,850 MW. The organisations setting up the projects raise equity and loan from domestic as well as international sources. Financial institutions in India are also providing loans to this sector based on their prudential lending norms, the Minister added.

State-wise details of total current commissioned capacity of solar energy in the country is given below:-

Sr. No. State/UT Total Commissioned

Capacity (MW) as on 07/03/2016

1. Andhra Pradesh 475.74
2. Arunachal Pradesh 0.265
3. Bihar 5
4. Chhattisgarh 73.18
5. Gujarat 1024.15
6. Haryana 12.8
7. Jharkhand 16
8. Karnataka 104.22
9. Kerala 12.025
10. Madhya Pradesh 678.58
11. Maharashtra 378.7
12. Odisha 66.92
13. Punjab 342.32
14. Rajasthan 1264.35
15. Tamil Nadu 635.87
16. Telangana 392.39
17. Tripura 5
18. Uttar Pradesh 140
19. Uttarakhand 5
20. West Bengal 7.21
21. Andaman & Nicobar Islands 5.1
22. Delhi 6.712
23. Lakshadweep 0.75
24. Puducherry 0.025
25. Chandigarh 5.041
26. Daman & Diu 4
27. Others/Rooftop 114.223
TOTAL 5775.571

Cost of Solar Power Generation 

As per the tariff order notified by the Central Electricity Regulatory Commission (CERC) for the year 2015-16, the cost of solar power generated from solar power production units, which is the levellised tariff for 25 years, is Rs. 7.04 per unit for solar power plants based on solar photovoltaic technology and Rs. 12.05 per unit for solar power plants based on solar thermal technology, said Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy in Rajya Sabha recently.

However, in the recent bidding for grid-connected solar PV power plants under National Solar Mission, in Bhadla Phase-II solar park in Rajasthan, lowest bid of Rs. 4.34/kWh has been received.

The Minister further stated that the land area required to set up solar power plants depends on the type of technology deployed and decreases with increase in the efficiency of the deployed technology. Current estimates are that to set up 1 GW of solar power, approximately 2,000 hectares of land will be required.

The “in-principle” approval of Ministry of New & Renewable Energy (MNRE) does not support setting up of solar power plants on fertile or agricultural land. Generally, barren / waste lands are preferred by the developers as the same can be acquired easily at a low cost. Further, MNRE has come up with a scheme on solar parks, wherein land and other infrastructure for setting up solar power plants is readily made available to the solar power developers and for this, the State Governments have been asked to prioritise the use of government waste / non-agricultural land.

Funds for R&D of New and Renewable Energy Technology : Against the budget of Rs. 513.28 crore allocated by Ministry of New and Renewable Energy for research and development (R&D) of new and renewable energy technology, a total expenditure of Rs. 435.95 crore was incurred  during the last three years and the current year.

Year wise and subject-wise budget allocated and expenditure incurred is given below:-

Sl No.


Subject Area Year-wise expenditure(release) in Rs.(crores)
2012-13 2013-14 2014-15 2015-16(up to Feb2016)
Funds Allocated Expenditure Funds Allocated Expenditure Funds Allocated Expenditure Funds Allocated Expenditure
1. Solar 47.50 47.50 54.80 54.80 44.80 44.80 33.90 33.25
2. Biogas R&D/Biogas Bottling 2.00 1.42 3.00 3.20 10.00 8.02 1.00 0.86
3. Biofuel 3.0 0.398 6.50 6.38 8.00 1.104 5.00 1.00
4. Hydrogen and Fuel Cells 20.00 12.35 2.00 15.85 19.00 10.80 5.90 2.80
5. Wind-Hybrid 2.0 2.0 6.00 6.0 2.00 2.0 2.94 2.94
6. SHP 8.00 8.0 8.50 8.22 1.00 1.00 0.50 0.50
7. Institutions

(a) NISE

(b) NIWE

(c) NIBE
































Total 133.5 108.328 142.05 147.61 147.99 132.434 89.74 47.58

Total Funds Allocated – Rs. 513.28 crore

Total Expenditure – Rs. 435.95 crore

The Ministry of New and Renewable Energy released Central Financial Assistance including subsidy totalling Rs.8293.31 crore during the last three years and the current year for promoting new and renewable energy.

The Minister further stated that details of step taken to promote use of renewable energy among public include the government policy initiatives   involving R&D, academic, industry and financial institutions for technology demonstration, training, resource assessment, publicity and awareness. Other steps taken to give impetus to use of renewable energy, include, providing various fiscal and financial incentives, such as capital/interest subsidy, generation based incentives, accelerated depreciation, concessional excise and customs duties, preferential tariff for purchase of power generated from renewable sources.

A separate financing institution, namely, the Indian Renewable Energy Development Agency (IREDA) has been set up as a public sector undertaking for market development and financing of renewable energy projects. In addition, the Ministry organized the Global Renewable Energy Investors Promotion Meet (RE-INVEST 2015) on 15-17th February 2015 at New Delhi as an attempt exploring proliferating public/private sector investment to give boost to use of renewable energy.