Solar Cities


    The Ministry of New and Renewable Energy, Government of India is implementing a programme on Developing Solar Cities in the country with the following objectives and activities:


    • To enable/empower Urban Local Governments to address energy challenges at City-level.
    • To provide a framework and support to prepare a Master Plan including assessment of current energy situation, future demand and action plans.
    • To build capacity in the Urban Local Bodies and create awareness among all sections of civil society.
    • To involve various stakeholders in the planning process.
    • To oversee the implementation of sustainable energy options through public-private partnerships.


    • Preparation of Master Plan of the proposed City within a period of one year from the date of sanction of the Ministry with total and sectorwise projections for energy demand and supply for next ten years.
    • The Master Plan will set a goal of minimum 10% reduction in projected total demand of conventional energy at the end of five years to be achieved through energy efficiency measures and renewable energy installations.
    • Setting up of Solar City Cell in the City Council including Senior Administrator and City Engineers for planning and implementation.
    • Organizing training programmes/workshops/business meets, camps etc. for various stakeholders.
    • Preparation of proposals for carbon financing.
    • Organizing publicity and awareness campaign through print and electronic media.


    CFA for preparation of Master Plans along with the Action Plans, setting up of Solar City Cell and it’s functioning, other promotional activities and oversight of implementation etc.

    Up to Rs. 50.00 lakh per city/town depending upon population and initiatives to be taken by the City Council/ Administration/Municipal Corporation, break-up of which is given below:

    • (i) Up to Rs. 10.00 lakh is for preparation of a Master Plan alongwith few implementable Detailed Project Reports within a year.
    • Up to Rs. 10.00 lakh is for oversight of implementation during three years.
    • Up to Rs. 10.00 lakh is for setting up of Solar City Cell and its functioning for a period of three years
    • Remaining amount of Rs. 20 lakh is to be utilized in three years for other promotional activities, trainings, workshops, study tours and augmenting the activities of Solar City Cell

    CFA for installation of various renewable energy projects/systems/devices in the Pilot Solar City

    Sanctions will be given under Solar City Programme by the Ministry depending upon the maturity of the proposal commensurate with the Master Plan and DPRs. A total CFA for installation of various renewable energy projects/systems/devices in the city upto Rs. 2.50 crore will be provided for each Pilot Solar City. The funds will be released to the Solar City/Township under the Solar City programme subject to the condition that the equal amount i.e., Rs. 2.50 crore will be made available by the concerned Municipal Corporation/City Administration/State or any other sources. The financial pattern will be as applicable in the schemes under Jawaharlal Nehru National Solar Mission being implemented by the Ministry for Solar related projects. For other projects the MNRE’s CFA of 50% or as in MNRE’s respective programmes, whichever is higher, would be applicable

    The first 10 cities will be covered under this financial assistance during 11th plan as Pilot Solar Cities on merit on first come first served basis. This financial assistance will be available to those cities which fulfil or have taken actions on the minimum of three conditions as listed below:

    i. The City has created a Solar City Cell and constituted the Stakeholders Committee. A copy of the notifications for creation of Solar City Cell and Stakeholders Committee to be submitted.

    ii. Action initiated/taken to amend building bye-laws for making the use of solar water heating systems mandatory in certain category of buildings.

    iii. Action initiated/taken to provide rebate in property tax through Municipal Corporations/ Municipalities or in electricity tariff though Utilities/ Electricity Boards to the users of solar water heaters especially in domestic sector.

    iv. Action iniated/taken to promote National Rating System for construction of energy efficient Green Buildings in particular to commercial and institutional buildings. The city has issued G.O as regards to construction of Green buildings in compliance with approved National Rating Systems like GRIHA particularly in Government/PSUs buildings.

    v. As per MSW Rules notified by the MoEF, the city has initiated/taken actions for proper MSW management and for setting up set up projects of suitable capacity for generating energy from the waste collected from the city/town.

    vi. The city has initiated actions in amending/has amended the byelaws or makes new byelaws for promoting the renewable energy options for avoiding use of diesel and petrol gen-sets in markets, public places, schools, offices etc.

    vii. Action initiated/taken for reduction of electricity consumption in street light/garden lights, traffic lights, blinkers, hoardings etc. and in schools, commercial buildings, offices, institutional buildings and other establishments by using energy conservation & renewable energy devices.

    viii. The Municipal Corporation/ Municipality/SNA have established at least one Akshay Urja Shop alongwith the repair and maintenance facilities either in their campus or at some prominent place in the City.

    ix. The Master Plan has been prepared and the installation of at least 2 to 3 Major Projects of Renewable Energy have taken place/sanctioned/commenced.

    Those projects set up by availing this amount of Rs. 2.50 crore of MNRE as Pilot Solar Cities will not be entitled to further avail the MNRE subsidy for the same project under any other programme. However, the other projects can be set up under MNRE programmes.

    For other Solar Cities, the financial pattern will be as applicable in the schemes under Jawaharlal Nehru National Solar Mission being implemented by the Ministry for Solar related projects and for other projects the MNRE’s CFA as applicable in MNRE’s respective programmes under this programme may be utilized.


    The programme is to be implemented through the Urban Local Bodies of the respective cities.The MNRE/GOI vide its sanction dated 25.6.09 has conveyed its approval for development of Faridabad and Gurgaon cities as Solar Cities at estimated cost of Rs.48.75 lacs and Rs. 47.45 lacs respectively during the period of five years by HAREDA through Municipal Corporations.

    Under this program, following projects have been set up in the state:-
    Sr No. Activities Amount sanctioned (Rs. in lacs)
    Faridabad Gurgaon
    1 Preparation of Master Plan 8.75 7.45
    2 Oversight of implementation during five years Upto 10.00 Upto 10.00
    3 Setting up of solar cell its functioning for a period of five years Upto 10.00 Upto 10.00
    5 Other promotional activities during five years Upto 20.00 Upto 20.00
    Total Upto 48.75 Upto 47.45

    Ministry has also conveyed the sanction and release of Rs.8.07,000/- (Rs.3.7 lacs for Gurgaon & Rs. 4.37 lacs for Faridabad) as 50% of the grant sanctioned for preparation of Master Plan by MC, Gurgaon & Faridabad. The next grant shall be released on submission of UCs and progress reports. The grant for other activities shall be released after submission of proposal for these activities.

    As a first step under this scheme, the concerned Municipal Corporation has to prepare Five Years Master Plan and 1) MC, Faridabad has released the work order to TERI, New Delhi for hiring its services as consultant for preparation of Master Plan@ Rs. 8.75 lacs in March, 2009 & the action plan of Faridabad city has been aproved by MNRE and has conveyed sanction for CFA of Rs. 2.5 Crore, 2) MC, Gurgaon has released the work order to M/s ICLEI, NOIDA as consultant @ Rs. 7.45 lacs for preparation of Master Planregarding Gurgaon City & Action Plan is under preparation.

    Both the MC’s have also constituted the stakeholder committee and solar city Cells. Fonds for setting of solar city cell have been released to MC, Faridabad and proposal for releasing the funds for Gurgaon City has been submitted with MNRE/GOI.

    The Ministry of New & Renewable Energy, Govt. of India has also approved a proposal, out of sanctioned CFA of Rs. 2.5 crore, for providing Solar Hybrid Inverters of capacity 1000VA in the Faridabad City.