Jawaharlal Nehru National Solar Mission

The Government of India has launched the Jawaharlal Nehru National Solar Mission, a pioneering initiative aimed at promoting ecologically sustainable growth while addressing India's energy security challenges. This mission also significantly contributes to global efforts to combat climate change.

Objective

The primary aim of the Mission is to create a conducive environment for solar technology penetration across India, targeting both centralized and decentralized levels. The first phase (up to March 2013) focused on promoting off-grid systems, including hybrid systems, to address power, heating, and cooling energy needs. These projects require supportive interventions to reduce costs while creating an enabling framework for entrepreneurial market development. To learn more about viable business models, visit our page on SIDBI Make in India Loan for Enterprises (SMILE).

Involving investors and providing them with tailored incentive packages within the scheme's guidelines is essential for sustained interest. The National Solar Mission is currently in its third phase. The first phase spanned 2010 to 2014, the second phase from 2015 to 2017, extended into the third phase from 2018 to 2022. These phases had targets of 1.4 GW, 11-15 GW, and 22 GW by 2022, respectively.

Phase-1

The first phase of the National Solar Mission established the guidelines and infrastructure to develop a self-sustained model, managed primarily by the National Thermal Power Corporation (NTPC). This phase succeeded in commissioning solar projects, achieving a 1.4 GW target. To support local manufacturers in producing solar panels, exploring new technologies is crucial. Given India's higher temperatures, the Phase-1 recommended a shift from crystalline-silicon-based to more suitable thin-film solar panels. For more on adapting solar technology to local conditions, refer to our CBIC Clarifications page for special considerations under GST.

Phase-2

Phase-2 capitalized on existing infrastructure and guidelines, marked by rapid progress. The Government of India initiated the establishment of 25 solar parks, increasing the target from 11-15 GW to 20 GW. These efforts, aided by financial support and simplified compliance processes, spurred entrepreneurial interest. For a comprehensive business approach, check out our Sole Proprietorship Registration guide.

Implementation

The National Solar Mission leveraged robust infrastructure and policies to achieve its goals. Here's a summary of key initiatives:

Constructing Solar Grids: Establishing solar grids to efficiently transmit and distribute energy to residential and industrial areas.
Solar Collectors: Evolving policies to mandate solar collection activities for commercial units, along with financial aid for implementation.
Manufacturing Capacity: Enhancing solar power conversion capabilities by supporting component manufacturers through various policies and financial assistance. The SME sector plays a pivotal role, backed by agencies like the Indian Renewable Energy Development Authority (IREDA). For manufacturing regulatory insights, visit our Shop Establishment Act Registration page.
Fiscal Incentives: Offering concessions/exemptions from customs and excise duties for critical materials and components.
Financing the Solar Mission: Besides government funding, international mission funds are harnessed to support solar projects.

To enhance understanding of project funding mechanisms, explore our resource on Companies Appointment and Qualification of Directors Amendment Rules 2022.

For further information, please contact:

Ministry of New and Renewable Energy

Block-14, CGO Complex,

Lodhi Road, New Delhi-110 003, India

Phone: +91-11-2436-1481

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Frequently Asked Questions

Common questions about Jawaharlal Nehru National Solar Mission India.

The Jawaharlal Nehru National Solar Mission is a major initiative by the Government of India and state governments to promote ecologically sustainable growth and address India's energy security challenges. It aims to create an enabling environment for solar technology penetration in the country, both at a centralized and decentralized level.

The immediate aim of the Mission is to focus on setting up an enabling environment for solar technology penetration in the country, both at a centralized and decentralized level. The first phase (up to March 2013) focused on promoting off-grid systems, including hybrid systems, to meet or supplement power, heating, and cooling energy requirements.

The National Solar Mission is currently in its third phase. The first phase was between 2010 and 2014, with a target of 1.4 GW. The second phase was between 2015 and 2017 (extended to 2022), with a target of 11-15 GW. The third phase, from 2018 to 2022, has a target of 22 GW.

During the first phase, the National Thermal Power Corporation (NTPC) played a significant role as a facilitator, evolving guidelines, agreements, and commissioning solar projects. NTPC helped achieve the target of 1.4 GW in the first phase.

During Phase 1, it was noted that the technology needed improvement, and local manufacturers should be enabled to produce solar panels. Due to India's high temperatures, crystalline-silicon-based products were deemed unsuitable, and thin-film solar panels with amorphous silicon, CIGS, and CdTe were chosen for the next phase.

In Phase 2, the Government of India announced a scheme to establish 25 solar parks to achieve the target of 11-15 GW (revised to 20 GW). The government provided financial support for the construction of solar parks and created a single-window clearance system for approvals, facilitating ease of compliance for entrepreneurs.

The key areas of focus include constructing a solar grid for energy transmission and connectivity, increasing solar collecting activity through policies and incentives, supporting the manufacturing capacity of solar components and systems, providing fiscal incentives and concessions, and financing the Solar Mission through budgetary support and international funding sources.

The Indian Renewable Energy and Development Authority (IREDA) is the authorized agency that coordinates the support for the SME sector in manufacturing solar components and systems. This includes providing soft loans for facility expansion, technology upgradation, and working capital.

The fiscal incentives include concessions and exemptions from customs and excise duties on critical materials and components used in solar power generation.

The Jawaharlal Nehru National Solar Mission is financed by the Government of India through budgetary support and by tapping into funds from international missions or organizations focused on renewable energy and sustainable development.