MNRE Launches Guidelines for Rooftop Solar Under PM-Surya Ghar: Muft Bijli Yojana

Introduces Payment Security Mechanism and Central Financial Assistance for RESCO and Utility-Led Models.

The Union Ministry of New and Renewable Energy (MNRE) has issued guidelines for implementing the ‘Payment Security Mechanism’ (PSM) and ‘Central Financial Assistance’ (CFA) components under the PM-Surya Ghar: Muft Bijli Yojana. The scheme aims to promote rooftop solar adoption in residential sectors through innovative financing and implementation models.

The scheme provides two key models for consumers to install rooftop solar systems:

1. RESCO Model (Renewable Energy Service Company):
   • Third-party entities invest in the rooftop solar installations.
   • Consumers pay only for the electricity consumed, avoiding upfront installation costs.
2. Utility-Led Aggregation (ULA) Model:
   • DISCOMs (Distribution Companies) or state-designated agencies will install rooftop solar systems on behalf of individual households.
   • Simplifies the process for consumers by leveraging existing utility infrastructure.

These models aim to ease financial and operational barriers for residential consumers, accelerating the adoption of renewable energy.

Payment Security Mechanism (PSM)

A ₹100 crore corpus fund has been allocated under the PSM to de-risk investments in RESCO-based grid-connected rooftop solar models. The fund may be augmented with additional grants and resources, pending Ministry approval, to further enhance financial stability and investor confidence in the sector.

Central Financial Assistance (CFA)

The guidelines include provisions for CFA support to facilitate the adoption of rooftop solar systems under the RESCO and ULA models. These measures complement the existing capex mode, where consumers directly invest in solar installations via the national portal (pmsuryaghar.gov.in).

Supplementing the National Portal

The newly notified models are designed to augment the PM-Surya Ghar initiative, which already enables consumers to independently install rooftop solar systems through the capex route. By offering additional implementation pathways, the scheme aims to enhance accessibility and cater to diverse consumer needs.

Benefits and Impacts

The guidelines aim to:

• Accelerate rooftop solar adoption in residential sectors.
• Mitigate financial risks for investors and service providers.
• Provide cost-effective energy solutions for households under the ‘Muft Bijli Yojana’ framework.
• Support India’s renewable energy targets and climate commitments.

The Union Ministry emphasized that the scheme’s innovative approach and robust financial mechanisms will drive progress toward a more sustainable and energy-secure future.