Solar Power Park Scheme: Central Government Expands Clean Energy Initiative
Solar Power Park Scheme: Central Government Expands Clean Energy Initiative
NEW DELHI Solar Power Park Scheme
The Union government plans to launch the second phase (solar power park scheme) of a dedicated program to develop solar parks across the country that will aim to plug loopholes and overcome slow progress.
Two officials with knowledge of the matter said the expanded scheme would seek to address the issue of solar park developers failing to make initial investments and delaying the development of projects till they receive money from power producers who place bids to develop power in such projects. The government is also looking to address the issue of inflated detailed project reports (DPR), they said.
According to one of the officials, “The people who come for developing solar parks, they don’t put in any money. They first do the bids for power developers. The money which comes from bids, they develop the solar parks.”
The scheme, which is known as ‘Development of Solar Parks and Ultra Mega Solar Power Projects’, was launched in December 2014 to help solar project developers set up projects in a plug-and-play model. The scheme is valid till the end of this fiscal. The government now plans to launch the second phase of this scheme with a focus on floating solar projects.
“We are thinking of expanding the scheme and coming up with a second part, particularly to take care of floating solar parks. The cost is higher in floating solar parks. Subsidy rates will be better,” the second official said. The focus on floating solar parks will reduce the need for vast stretches of land to set up similar parks.
However, the technology for floating solar module projects, wherein photovoltaic solar panels are mounted on floating structures on water bodies, is expensive. Under the current scheme, the MNRE provides central financial assistance (CFA) of up to ₹20 lakh per MW or 30% of the project cost, including grid-connectivity cost, whichever is lower. The solar parks are developed in partnerships with state governments and their agencies, CPSUs, and private entrepreneurs.
The implementing agency is termed as a solar power park developer (SPPD). Post the selection of the SPPD, bids are sought for power developers, which are largely independent power producers (IPP) to produce power at the site in a plug-and-play model.
On the instances of SPPDs lagging in infrastructure development, Amit Kumar, partner, and leader for Power, Utilities and Mining, PwC India said: “The scheme is aimed at providing a plug-and-play model of infrastructure for the power developers, but the opposite happens in some instances where the SPPD starts development of the project only after the money comes in from the IPPs. This delays the project.”
Further, according to sector experts, project development is delayed even if the SPPDs receive a grant from the Centre for the project.
Suggested Articles

Solar Roof Hook Installation: Step-by-Step Guide
A step-by-step guide to solar roof hook installation, covering positioning, alignment, and best practices for strong and reliable rooftop systems.

Choosing the Right Solar Panel: Complete Guide for India
Solar is among the fastest-growing industries in India. This is mainly because solar energy is not only renewable but is also attractive from a financial point of view.

PV System Maintenance Tools & Equipment Guide
A complete guide to performing the solar PV anti-islanding test, ensuring safe grid-connected operation, regulatory compliance, and reliable inverter performance.

How to Check Equipment Location for Solar PV Systems
A complete guide to battery bank enclosure and rack installation, including site verification, setup procedures, and safety practices for solar PV systems.

Solar PV AC Power Hazards Guide
A complete guide to identifying AC power hazards in solar PV systems and following safe work practices during installation, testing, operation, and maintenance.

Solar Cell Technology: Monocrystalline vs Polycrystalline vs Thin-Film
Explore the different types of solar cells, including monocrystalline, polycrystalline, and thin-film, and learn their efficiency, applications, and benefits for solar energy systems.

Poor vs Good Solar Installation: Key Differences Explained
A solar system’s performance depends heavily on installation quality. This blog explains the clear differences between a poor and good solar installation — from wiring practices and panel alignment to mounting structures and system safety — helping you make an informed choice and ensure long-term efficiency.

How to Clean and Maintain Solar Power System for Maximum Efficiency
Regular cleaning of your solar power system is essential to maintain maximum efficiency and energy output. Dust, bird droppings, and pollution can reduce performance by up to 20%. This blog explains the right cleaning methods, schedules, and safety tips for residential, industrial, and commercial solar systems.