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

Delhi Jal Board Solar Project: A Step Towards Sustainable Energy
Delhi Jal Board has embraced solar power, becoming a leader in renewable energy adoption. This initiative highlights the benefits of solar energy, including cost savings, sustainability, and promoting clean energy practices in institutional operations.

BOOT vs PPA Explained: Find the Best Way to Finance Your Solar Plant
Choosing between the PPA and BOOT models can significantly impact your solar savings. This guide compares both financing options to help businesses make the right decision.

India Solar Energy Policies: Key Updates and Government Initiatives
India is one of the leading countries in terms of solar energy development, having become the fastest-growing market for solar power globally.

Data Acquisition System Calibration in Solar PV Plants
A complete guide to solar PV data acquisition system calibration, ensuring accurate monitoring, reliable data collection, and effective performance analysis.

OPEX Industrial Solar Provider in India: How It Works, Cost & ROI
An OPEX industrial solar provider installs and owns the solar plant while industries pay only for energy used. Learn cost, benefits, and ROI in India.

Solar PV String Voltage and Current Measurement Guide
A complete guide to DC voltage and current testing for solar PV strings and arrays, ensuring accurate performance verification during commissioning.

How Azimuth Angle Impacts Solar Panel Efficiency for Homes, Industries, and Commercial Buildings
Discover how solar panel azimuth impacts energy generation in homes, industries, and commercial buildings. Maximize efficiency with correct orientation.

Solar String Sizing Check: Did Your Installer Get It Right?
Worried your rooftop solar strings might be sized incorrectly? Check these tips to ensure your Solar PV system is installed for maximum efficiency and safety