Shri Piyush Goyal, Minister of State (IC) for Power, Coal & New and Renewable Energy (IC) has informed that the Ministry has been implementing Solar Pumping programme through States, NABARD & other Government departments for setting up of Solar Power plants to pump water for irrigation purpose. Shri Goyal further said that the programme is demand driven. State Governments send proposals to the Ministry based on the requirements in their respective States. Ministry is providing 30% capital subsidy equivalent (Rs/Hp) for setting up of solar water pumping systems, limited to maximum 5 HP, the Minister added. The subsidy pattern is given as follows:
Central Financial Assistance (CFA) pattern for Off-Grid Solar PV Pumps
| Rs per HP | |||||||
| Sno. | SPV | Capacity | General Category | Through NABARD | NE States, A&N, | Special Category | Channel Partners |
| System | States | Lakshadweep Islands | States | ||||
| 1 | DC Pumps | Up to 2 HP | Rs. 43200 | Rs. 57600 | Rs. 47520 | Rs. 43200 | Rs. 41000 |
| >2HP to 5HP | Rs. 40500 | Rs. 54000 | Rs. 44550 | Rs. 40500 | Rs. 38500 | ||
| 2 | AC Pumps | Up to 2 HP | Rs. 37800 | Rs. 50400 | Rs. 41580 | Rs. 37800 | Rs. 36000 |
| >2HP to 5HP | Rs. 32400 | Rs. 43200 | Rs. 35640 | Rs. 32400 | Rs. 30700 | ||
| >5 HP to 10 HP* | Rs. 28800 | Rs. 38880 | Rs. 32076 | Rs. 29160 | Rs. 27630 | ||
SPV water pumping system over 5HP may avail subsidy under State Government Schemes where ever applicable. MNRE subsidy will be limited to 5 HP only even for higher capacity pumps till any revision in the Scheme.