For utility-scale developers, state governments, PSUs, private developers
Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects
All States and UTs — Pan India; key states: Rajasthan, Gujarat, Karnataka, AP, TN, MP, UP, J&K (Ladakh) · MNRE / Solar Energy Corporation of India (SECI) / State Implementation Agencies
For utility-scale developers, state governments, PSUs, private developers in All States and UTs — Pan India; key states: Rajasthan, Gujarat, Karnataka, AP, TN, MP, UP, J&K (Ladakh) — this guide covers the Scheme for Development of Solar Parks and Ultra Mega Solar Power Projects. Administered by MNRE / Solar Energy Corporation of India (SECI) / State Implementation Agencies. Below are subsidy rates, eligibility, technical rules, documents, and scheme process.
Subsidy benefits
- Rs.20 lakh/MW or 30% of project cost (lower of two) as CFA for solar park infrastructure
- CFA covers: land acquisition support, transmission lines, water supply, roads, communication network, drainage
Authority and scope
- Government body: MNRE / Solar Energy Corporation of India (SECI) / State Implementation Agencies
- Nodal agency: SECI (Solar Energy Corporation of India Limited)
- Eligible for: utility-scale developers, state governments, PSUs, private developers
- Installation type: Ground-mounted utility-scale solar PV; minimum 500 MW park (100 MW for NE/hilly states)
Eligibility and disbursement
- Open to multiple consumer categories.
- Income restrictions: Open to all private and public sector solar developers.
- Disbursement timeline: Project development: 18–36 months typically
- Disbursement mode: CFA released by MNRE to Implementing Agency / SPV in tranches based on milestones
- Maximum capacity: 1000000 kW
Net metering and technical rules
- Net metering availability is not listed.
- Net metering policy: Not applicable — utility-scale projects use PPA / tariff discovery bidding.
- Gross metering policy: Projects sell power via SECI/CERC tariff bidding or bilateral PPAs with DISCOMs. Tariff as low as Rs.2.14/unit (Rajasthan, Dec 2020 record low).
- Hybrid policy: MNRE Hybrid Wind-Solar Policy 2018 allows co-located hybrid projects in solar parks.
- DISCOM requirements: Must sign PPA with SECI / state DISCOM; STU-level grid connectivity mandatory.
How to apply
State submits proposal to MNRE for solar park development
MNRE approves park; state forms Implementing Agency / SPV
Implementing Agency develops infrastructure (land, roads, grid)
SECI or IA issues RfS/RfP for solar power developers
Competitive bidding — lowest tariff wins PPA
Developer installs solar plant within park
SECI issues commissioning certificate
CFA released to Implementing Agency by MNRE
Power supplied to grid under long-term PPA (25 years)
Documents required
- State government proposal / DPR
- Land identification certificate
- Transmission connectivity approval (STU / CTU)
- Environmental / forest clearance
- Water availability certificate
- State cabinet approval for SPV formation
Additional details
- Scheme budget: CFA: Rs.20 lakh per MW or 30% of project cost (whichever is lower) for solar park infrastructure. Total: Rs.8,100 crore for 40,000 MW target (enhanced from 20,000 MW in 2017). Timeline extended to FY 2025-26.
- Target beneficiaries: Utility-scale solar developers. As of Jan 31, 2025: 41,137 MW proposed; 13,054 MW commissioned; 15,181 MW under construction; 12,902 MW in tendering. Key solar parks: Bhadla (Rajasthan, 2,245 MW), Charanka (Gujarat, 590 MW), Pavagada (Karnataka, 2,050 MW), Rewa (MP, 750 MW), Ananthapuramu (AP, 1,500 MW).
- Progress: India: 107.94 GW solar installed (April 2025). All-time peak: 65,804 MW (April 18, 2025). Solar = 47% of total renewable installed capacity. 24.5 GW added in FY 2023-24 — record single-year addition.