CFA for Rooftop Solar Programme Phase-II under virtual net metering notified

The Ministry of New and Renewable Energy (MNRE) has notified clarification on applicability of central financial assistance (CFA) available under Rooftop Solar (RTS) Programme Phase-II for solar systems installed under virtual net metering (VNM) arrangement. CFA will be provided for installation of RTS plants in the residential sector by individual households or by GHS/RWA’s. Some of the states and union territories have a provision of VNM wherein a group of consumers of the distribution company can install a solar plant within the area of the same company and avail benefits of net metering against the solar power fed into the grid from that solar plant.

A clarification has been sought by different stakeholders on the applicability of CFA available under RTS Programme Phase-II for residential consumers installing solar plants under VNM arrangement. In this regard, it has been clarified that the CFA applicable under RTS Programme Phase-II of MNRE will also be applicable for solar plants setup under VNM arrangement, subject to some conditions.

Further, to facilitate the installation of solar plants under VNM arrangement, MNRE has prepared a concept note covering some of the possible business models including CAPEX, RESCO and utility operated model. The actual implementation will further depend on the applicable regulations and other conditions.


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