The Government of India has started schemes like Production Linked Incentive (PLI), Solar Park Scheme etc. to create a favorable environment for solar power development and to promote domestic manufacturing.
According to statistics, India produces about 5,000 trillion kWh of solar energy, from which most parts of the country get 4-7 kWh of energy per square meter per day. The Government of India has started schemes like Production Linked Incentive (PLI), Solar Park Scheme etc. to create a favorable environment for solar power development and to promote domestic manufacturing.
What is solar park scheme?
The government says that by November 30, 2023, a total of 50 solar parks with a combined capacity of 37,490 MW have been approved in 12 states. The government has extended the solar park scheme till financial year 2026. This scheme was to end in March 2024. The scheme was launched in December 2014 to support States and Union Territories in setting up solar parks at various locations in the country with the aim of creating necessary infrastructure for setting up solar energy projects.
A solar park is a large piece of land which is developed with all the usual infra facilities like transmission infrastructure, roads, water, watcher drainage, communication network with all statutory approvals.
How does the scheme work?
Under the scheme, the ministry provides Central Financial Assistance (CFA) up to Rs 25 lakh per solar park for preparation of Detailed Project Report (DPR). Additionally, on achieving the targets set under the scheme, a CFA of up to Rs 20 lakh per MW or 30 per cent of the project cost including grid-connectivity cost, whichever is lower, is also provided.
Target to become a big exporter of solar energy by 2026
There is immense potential for generating solar energy in India. With about 300 days of sunshine annually, the country can use solar energy equivalent to 748 GW. Due to falling prices of solar panels, government policy and increasing environmental awareness, India’s solar energy sector has seen tremendous growth in the last years. The country aims to become a major exporter of solar energy by 2026.
