GBI Updates from the Ministry of New and Renewable Energy

Posted on January 3, 2012 by

In a written reply to a question in Lok Sabha, on 16 December 2011, MNRE gave the following updates on the existing Generation Based Incentive (GBI) scheme for wind and solar;


  1. A GBI of Rs. 0.50 per unit of electricity can be availed for a period not less than 4 years and a maximum period of 10 years.
  2. The cap would be Rs. 62 Lakhs per MW.
  3. GBI is in parallel with accelerated depreciation but on a mutually exclusive manner.
  4. The total disbursement in a year would not exceed 1/4th  of the maximum limit of the incentive i.e. Rs. 15.50 Lakh per MW per year.
  5. The scheme includes captive wind power projects but excludes third party sale.


  1. Small (100kW-2 MW) grid connected (below 33KV) solar projects will get a GBI of Rs. 17.91 per kWh.
  2. State Utilities will get a GBI of Rs. 12.41 per kWh when they directly purchase solar power from project developers.
  3. There are 78 projects registered with a total capacity of 98 MW. Currently, the scheme is not open to accept new project proposals.


The eligibility criteria for both the schemes are given below:


There is no minimum capacity fixed under the scheme. The scheme is applicable for the projects commissioned on or after 17 December, 2009. However, the projects should not avail accelerated depreciation and should sell their electricity to the grid at a tariff fixed by SERC and/or State government.


The solar project has to be connected to HT grid at 33KV and has to be in the range of 100KV to 2MW. The project is also required to meet the technical requirements on performance and grid connectivity.


Numbers to date:

Total capacity of wind projects registered under GBI – 1303.78 MW

Total capacity of small solar projects registered under GBI – 98MW