REC is nodal agency, to extend Rs 1.20 lakh cr credit for Pradhanmantri Suryodaya Yojana

New Delhi: State-run REC Limited has been selected as the nodal agency for the implementation of Pradhanmantri Suryodaya Yojana and will extend credit of up to Rs 1.20 lakh crore for the scheme, said REC’s Chairman and Managing Director (CMD) Vivek Kumar Dewangan on Tuesday. Interacting with the media during a quarterly earnings press conference, Dewangan said that REC has been given a target of facilitating the installation of rooftop solar power systems in 1 crore households across India in a year’s time. While the finer details of the programme are currently being worked out by the Ministry of New and Renewable Energy (MNRE), REC has been given the responsibility to put in place approximately 10 GW of rooftop solar power systems in the residential segment.

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“We have been given a target of covering 1 crore households in a period of one year. We have taken up this challenge. It will require us to coordinate with multiple stakeholders… owners of the rooftop, power distribution companies, vendors, financing companies and some power CPSEs that have been allocated various states. These CPSEs will also be proactively engaged in implementing this scheme under RESCO model. We hope that we will be able to increase our portfolio of renewable energy,” said Dewangan.

“The MNRE is considering increasing the subsidy for 1-3 kW category. The subsidy component until now for this category was up to 40 percent. And for capacities above 3 kW, the subsidy was being given for 20 percent of the capital cost. The MNRE is proposing certain rationalisations. Also, most of these 1 crore rooftop solar systems will come up under the 3kW category. They are in the process of working out the detailed schematics,” said the REC CMD.

REC to extend credit of Rs 1,20,000 to PSUs for Pradhanmantri Suryodaya Yojana

“Today in our board meeting, the board has authorised the management of REC to issue Line of Credit (LoC) to the CPSEs which are going to act as renewable energy service companies to the tune of about Rs 15,000 crore. There are eight CPSEs which have been selected to implement the solar rooftop scheme. We are confident that we will be able to extend credit of up to Rs 1,20,000 crore for rooftop solar mission to eight PSUs,” the CMD told reporters.

REC's role in Pradhanmantri Suryodaya Yojana

REC will act as the nodal agency for the implementation of Pradhanmantri Suryodaya Yojana. While it will not fund the household rooftop solar installations directly, it will extend funds to the Central Public Sector Enterprises (CPSEs) that have been allocated states across India for the installation of these systems. The list of these eight PSUs includes NTPC, NHPC, Power Grid, SECI, SJVN, THDC, NEEPCO and EESL.

Commenting on the requirement of funds for 1 crore rooftop solar installations, VK Singh, REC’s Director (Projects) said, “The eight CPSEs will also be providing equity for the implementation of these projects and therefore, they will be needing huge funding. At the rate of Rs 5 crore per MW, installation of 40 GW of rooftop solar will require investments of around Rs 2 lakh crore. Therefore, today, we have taken a decision to extend financial support to any CPSE which needs that support.”

In addition to these eight PSUs, private vendors already registered with the government for the implementation of the National Rooftop Solar Scheme will also be involved in the installation of rooftop solar projects.

REC to put up 40 GW of rooftop solar in total by 2026

In addition to the residential segment, The MNRE has also entrusted REC with the responsibility of ensuring the installation of rooftop solar power systems in the commercial and industrial segment and state and Central government buildings. In these segments, there is no subsidy for the installation of these systems. In total, REC has been given a target of putting in place 40 GW of rooftop solar systems (including 10 GW in residential segment under Pradhanmantri Suryodaya Yojana) by 2026.

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