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 PV Cable Selection Guide: Type, Color & Gauge
A complete guide to selecting solar PV cable type, color, and gauge for safe, efficient, and reliable solar system installation.

Solar Installation on Sloped Roofs: Design, Mounting Systems & Best Practices
A practical guide to flat roof solar installation covering key design considerations, mounting system types, and best practices for efficient and reliable performance.

How to Check Solar PV Module Performance
A complete guide to testing solar PV module performance, including voltage and current measurements, power output analysis, and performance verification techniques.

Electrical Measuring Instruments Every Solar Installer Must Know
Solar installers rely on accurate electrical measurements for safe and efficient system performance. This guide explains the role of voltmeters, ammeters, digital multimeters, and clamp meters in solar installations.

Solar PV Battery Types: Complete Installer Guide
A complete guide to the types of batteries used in solar PV systems, helping installers and solar professionals choose the right energy storage solution.

Minimum Land Requirement for Solar Power Plants in India
Understanding the land requirement for solar plant projects in India is essential for accurate planning and approvals. This article explains minimum land needed per kW and MW, key influencing factors, and differences between rooftop and ground-mounted solar plants.

How to Calculate PV Power Output? Step-by-Step Guide
Calculating PV power output helps you estimate how much electricity a solar system can generate. This step-by-step guide explains the PV power output formula, examples, and key factors affecting solar energy production.

Solar EPC Installation Tools & Consumables Guide for Civil & Mechanical Work
A complete Solar EPC guide covering essential tools and consumables required for civil and mechanical installation to ensure smooth and efficient project execution.