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

PM Surya Ghar Muft Bijli Yojana 2025: Online Registration Made Simple
PM Surya Ghar Muft Bijli Yojana 2025: Learn how to register online and get free electricity under this government scheme.

How MPPT Works in an Inverter: A Simple Guide for Solar Users
This simple guide explains how MPPT works in a solar inverter, helping users understand how it maximizes power output and improves system efficiency.

How a String Monitoring Box Works in Residential Solar Systems
Understand how a string monitoring box helps track and protect your home solar panels for maximum efficiency and safety

Solar Financing for Businesses: Complete Guide to Funding Commercial & Industrial Solar Projects in India
Discover solar financing options for businesses in India, including CAPEX, OPEX, PPA models, solar loans, ROI, and funding strategies for commercial and industrial solar projects.

Solar Installation Cost in Haryana: Pricing, Savings & Subsidy Guide
Solar installation cost in Haryana varies by system size, components, and subsidy eligibility. This guide explains per-kW pricing, government incentives, and how much owners can save with rooftop solar in 2025, helping you choose the right system at the right budget.

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.

What Is Renewable Energy? What Is the Best Source of Renewable Energy and Why? – Complete Guide
Renewable energy comes from natural sources like sunlight, wind, water, and biomass that are constantly replenished. As India accelerates its transition toward clean energy, understanding different renewable energy sources and identifying the most efficient and cost-effective option is crucial. This complete guide explains renewable energy types, their advantages, and compares them to determine the best source based on sustainability, scalability, and long-term benefits.

Fire Hazard in a Solar Setup at Rice Mill, Kaithal – Case Study and Safety Insights
A recent fire incident at a rice mill in Kaithal highlights the critical importance of safety in solar installations. This case study analyzes the root causes, system faults, and preventive actions that can help industries avoid similar hazards in their solar setups.