Government Notifies Guidelines for Rooftop Solar Under PM-Surya Ghar: Muft Bijli Yojana

The Union Ministry of New and Renewable Energy (MNRE) has announced the implementation guidelines for the ‘Payment Security Mechanism’ (PSM) and ‘Central Financial Assistance’ (CFA) components under the PM-Surya Ghar: Muft Bijli Yojana. The scheme aims to boost the adoption of rooftop solar plants across India by offering innovative models for residential consumers.

Two Models for Rooftop Solar Installation

The scheme introduces two alternative models for implementing rooftop solar projects:

1. RESCO Model: Under the Renewable Energy Service Company (RESCO) model, third-party entities invest in rooftop solar installations. Consumers pay only for the electricity consumed, without incurring upfront installation costs.
2. Utility-Led Aggregation (ULA) Model: In the ULA model, DISCOMs or state-designated entities manage rooftop solar project installations for individual residential households.

These models complement the existing consumer-driven capex mode available through the National Portal for Rooftop Solar at the official website of PM Surya Ghar.

Fund for Payment Security Mechanism

To de-risk investments in the RESCO-based grid-connected rooftop solar models for the residential sector, a ₹100 crore Payment Security Mechanism (PSM) corpus fund has been established. This fund may be enhanced through additional grants, funds, or other sources, subject to Ministry approval.

Enhancing Rooftop Solar Adoption

The new guidelines aim to address financial and operational challenges in rooftop solar adoption while enhancing consumer convenience. The inclusion of RESCO and ULA models will expand implementation options, making rooftop solar more accessible and affordable for residential consumers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.