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

Cut Factory Electricity Bills with Solar Energy: Smart Power Saving Guide for Industries in India
Discover how solar energy helps factories in India reduce electricity bills, improve ROI, and achieve long-term industrial power savings.

How to Connect a Solar Panel to an MPPT Charge Controller: Step-by-Step Guide
This guide explains how to connect a solar panel to an MPPT charge controller step by step. Learn correct wiring, safety tips, and best practices to ensure efficient and reliable solar power performance.

Updated Rates of Solar Subsidy in Delhi: Cost, Eligibility & Benefits
Discover the latest solar subsidy rates in Delhi for 2025. This guide explains the updated costs, eligibility criteria, and benefits to help you maximize savings on your rooftop solar installation.

Capex vs Opex Solar Model: Which is Better for Your Energy Needs?
Solar energy systems are becoming increasingly popular in homes and businesses around the world. With rising electricity costs, solar energy provides an attractive alternative to traditional energy sources.

Benefits of Solar Energy: Why Switching to Solar Makes Sense
Switching to solar energy offers numerous benefits, from lowering electricity bills to reducing your carbon footprint. This guide explores how solar power supports sustainable living, provides cost savings, and creates a cleaner environment for homes, businesses, and industries. Learn why adopting solar energy is not just smart, but essential for a greener future.

How the RESCO Model Works in Solar: A Complete Guide for Industries
The RESCO model allows businesses to adopt solar with zero upfront investment. Under this model, a developer installs, owns, and operates the solar plant while you simply pay for the power you consume—making clean energy both affordable and hassle-free.

Important Factors Deciding the Type of Solar PV System to be Installed
A solar site assessment helps installers evaluate location, shading, structure, and energy requirements before installation. This guide explains the essential steps for accurate solar system planning.

Solar Sector Growth in India Slows as Investments Decline in Q1 2023
India’s solar sector experiences an investment slowdown in Q1 2023, reflecting challenges in funding and growth for renewable energy projects.