MNRE increases benchmark costs for rooftop solar in FY22

The Ministry of New and Renewable Energy (MNRE) has notified benchmark costs for grid-connected rooftop solar photovoltaic (PV) systems for FY22. After 10 days from notification, on August 28, 2021, the benchmark cost for FY 2021-22 applies to all projects to be awarded and empanelment of vendors by state implementing agencies under phase-II of the MNRE's rooftop solar programme. Solar photovoltaic (PV) modules with domestic cells and modules and inverter (single/3 phase) are included in the benchmark price. The applicable subsidies for residential rooftop solar systems announced by MNRE will be calculated using the benchmark costs determined for the specific years or the lowest cost quoted in a tender, whichever is lower. The balance of the system includes cable, switches, circuit breakers, connectors, junction boxes, mounting structures, earthing, lightning arresters, civil works, installation and commissioning, a five-year comprehensive maintenance contract, transportation, insurance, and taxes. However, net metering and battery backup costs are not included in the benchmark costs. For system capacities of 10 kW-100 kW, the benchmark cost for rooftop solar projects in states other than special category states is $41.64 ($0.56)/W. This represents a 9.6% increase over the benchmark costs established in FY 2020-21. Special category states' benchmark costs have also been increased (Northeastern States, Uttarakhand, Himachal Pradesh, Jammu and Kashmir, and the Union Territories of Andaman and Nicobar). The MNRE set the cost for systems with capacities of 1kW to 2kW at 51.67 ($0.70)/W, a 9.9% increase over the previous year's benchmark costs. The government has been keeping a close eye on market movements and rising component and commodity costs, as evidenced by its decision to raise benchmark costs this year. In August of last year, MNRE released operational guidelines for the second phase of its grid-connected rooftop solar programme. In the second phase of this programme, 22 GW of rooftop solar PV projects will be installed. MNRE issued a clarification in January this year for the second phase of its rooftop solar programme, in which distribution companies will solicit expressions of interest for empanelling agencies to supply, install, and commission rooftop solar systems in residential properties. It had mentioned that all bidders in the lowest bid price bracket would be appointed and would provide services to customers at the lowest agreed tariff rate. Image Source Also read: BREDA invites bids for 1 MW of hybrid rooftop solar projects in Bihar