Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Solar Off-Grid Scheme Scheme of MNRE for Promotion of Solar Off-Grid (Photovoltaic & Thermal) & Decentralised Applications Under JNNSM

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Objectives To promote off-grid applications of solar energy (both SPV and Solar Thermal) for meeting Phase-I targets of the National Solar Mission. To create awareness and demonstrate effective and innovative use of Solar systems for individual/ community/ institutional applications. To encourage innovation in addressing market needs and promoting sustainable business models. To provide support in flexible demand driven mode to channel partners and potential beneficiaries, within the framework of boundary conditions. To create a paradigm shift needed for commoditization of off-grid solar applications. To support consultancy services, seminars, symposia, training, awareness campaigns, human resource development, etc.

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Scope Off-Grid Solar PV –Up to 100KWp per site Off-Grid & Decentralised Solar Thermal –As specified by Government from time to time Mini-Grids for Rural Electrification –Up to 250 KW To promote technology upgradation in SME –Projects involving improvement in technology / expansion in production facilities/working capital loans

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Financing pattern 20%*Promoters’ Contribution 30%*Capital Subsidy 50%*Interest Subsidy 100%*TOTAL * Percentage of Project Cost

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Channel Partners Renewable Energy Service Provider Companies (RESCOs) Financial Institutions (acting as Aggregators) Financial Integrators System Integrators Programme Administrators

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Accreditation of Channel Partners Rating by a Rating Agency may be considered for Accreditation of Channel Partners MNRE Channel partner (other than Bank / FI) Accreditation methodology by MNRE Seeking Accredition Grant of Accredition

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Approval of Project Formulation of Project by Channel Partner, within Boundary Conditions specified by MNRE Project Approval Committee to be set up by MNRE for screening & approving projects Only PAC approved projects to be eligible for Subsidies under the Scheme

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Project Approval Seeking Project Approval MNRE PAC Channel partner (other than Bank / FI) Grant of Project Approval Formulation of Project within Boundary Conditions specified by MNRE

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Interest Subsidy IREDA to be the Nodal Point for providing Interest Subsidy MNRE to place funds for Interest Subsidy with IREDA IREDA to provide funds to scheduled commercial banks & NBFCs by way of 2% p.a. Scheduled commercial banks & NBFCs to lend to 5% p.a. for PAC approved projects

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Process Flow MNRE Subsidy IREDA Refinance PLI Loan CUSTOMER Approval

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Interest Subsidy: Refinancing Partners MNREIREDA NABARD NHB SIDBI

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Interest Subsidy: Refinancing partners IREDA shall provide funds received from MNRE to refinancing institutions for loans granted by them NABARD RRBs Regional Rural Banks NHB HFCs Housing Finance Companies SIDBI SFCs State Financial Corporations

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, MNRE IREDA Bulk Finance IREDA Refinance Interest Subsidy

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Capital Subsidy: Credit Linked IREDA to make available, up front, the funds received from MNRE, to primary lending institutions PLI to credit borrower’s account with the capital subsidy amount after confirming successful implementation of project PLI to provide Utilisation Certificate to IREDA

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Capital Subsidy MNREIREDAPrimary LendersBorrowers

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Capital Subsidy: Non-Credit Linked MNRE to make available Capital Subsidy for PAC approved projects through State Nodal Agencies

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Refinance Refinance Agreement between IREDA and Primary Lending Institution Refinance from 2% p.a. Primary lending institution to provide the 5% p.a. incorporating Interest Subsidy

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Refinance Scheme Features Scale of refinance: 100% of amount financed Term of refinance: 5 years Security: Charge over book debts + collateral / guarantees as may be stipulated by IREDA. Repayment: Quarterly Minimum amount per claim: Rs.50 lakhs

Indian Renewable Energy Development Agency Ltd. April 26, MNRE’s Solar Off-Grid Scheme May 6, Thank You