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
India’s Renewable Energy Revolution: The Role of Agrivoltaics
Agrivoltaics, the integration of solar panels with agricultural land, is emerging as a key driver in India’s renewable energy revolution. This blog explains how agrivoltaics supports sustainable farming, increases land efficiency, and contributes to clean energy production, helping India meet its solar energy targets while boosting rural economies.

Solar Inverter Installation: On-Grid, Off-Grid & Hybrid
A complete guide to on-grid, off-grid, and hybrid solar inverter installation, including setup, wiring, and best practices for safe operation.

How to Identify the Type of Footing Required for Solar PV Installations: Complete Guide
Learn how to identify the right footing for solar PV installations based on soil conditions, load requirements, and site factors. This complete guide covers different foundation types, selection criteria, and practical insights for safe and efficient solar system design.

पीएम सूर्य घर योजना 2025 – मुफ्त बिजली पाने के लिए ऐसे करें आवेदन
पीएम सूर्य घर योजना ऑनलाइन आवेदन 2025: मुफ्त बिजली पाने की आसान स्टेप-बाय-स्टेप प्रक्रिया यहाँ पढ़ें।

Net Metering and Its Advantages Explained: How Solar Users Save More on Energy Bills
Learn what Net Metering and its advantages mean for you—cut electricity costs, earn energy credits, and boost solar efficiency easily.

What Does 1 kWp Mean in Solar Power Systems?
1 kWp is a standard unit used to measure the capacity of a solar power system under ideal conditions. This guide explains what 1 kWp means, how much energy it produces, and why it matters for system sizing.

Solar for Industrial Use in India: Costs, Benefits & Energy Savings Explained
Solar for industrial use in India is rapidly transforming how factories manage energy costs and efficiency. This guide covers system sizes, costs, benefits, ROI, and how solar energy helps manufacturing units, warehouses, and industrial plants reduce power bills and ensure long-term sustainability.

Difference Between Single-Phase and Three-Phase Voltage and Its Use for Solar PV Installer – Complete Guide
Understanding the difference between single-phase and three-phase voltage is essential for solar PV installers. While single-phase supply is common in residential systems, three-phase power is widely used in commercial and industrial solar projects. This complete guide explains electrical phase differences, applications in solar installations, and how choosing the right phase connection impacts system efficiency, safety, and performance.