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MNRE issues draft guidelines for off-grid solar power plant scheme in RESCO mode

The Ministry of New and Renewable Energy (MNRE) issued draft guidelines for the implementation of off-grid solar power plant in renewable energy service company (RESCO) mode.

RESCO model is considered one of the most successful ways to expand solar installation as it is a less capital-intensive solar scheme.

In RESCO mode consumer pays only for the electricity generated, while the solar system is owned by the developer.

As per the guidelines the scheme is applicable only in the Northeast States of India for installation of offgrid solar PV plants through RESCO mode with Central financial assistance (CFA) of 90 percent of the benchmark cost of the system. 

The guidelines provide design aspects for both isolated off-grid systems and grid-connected system and tariff estimation for two cases – one, in which subsidy is paid upfront, the levelized tariff discovered is `5.96 per kWh, and two, in which 50 percent subsidy is paid upfront and the balance after completion of five years, the levelized tariff is `9.55 per kWh.

The guidelines propose that under RESCO model the vendor should install and operate the solar power plant of capacity up to 10 kWp for at least 10 years and solar PV plants of capacity above 10 kWp for at least 15 years. Solar power plants will be installed by the RESCO on a build, own, operate, and transfer (BOOT) basis. After completion of this time, the plant will be handed over to the beneficiary in operating condition. 

Author : Padmini
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