Govt sets rules for aid, payment security in rooftop solar scheme

The government has issued guidelines for financial aid and payment security under the PM Surya Ghar Muft Bijli Yojana, supporting rooftop solar adoption through RESCO and ULA models for residential households.

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The Ministry of New and Renewable Energy has released operational guidelines for implementing the PM Surya Ghar Muft Bijli Yojana, a rooftop solar scheme aimed at empowering residential households to generate electricity. The scheme, launched in February 2024 with an outlay of ₹75,021 crore, will run until March 31, 2027. It offers Central Financial Assistance (CFA) to 1 crore residential consumers for installing rooftop solar systems under two models: the Renewable Energy Service Company (RESCO) model and the Utility-Led Aggregation (ULA) model.

Under the RESCO model, a Renewable Energy Service Company procures, installs, and maintains the rooftop solar systems for at least five years. Consumers pay a tariff for the electricity consumed from the system but do not bear the upfront investment or own the asset during the project period. Ownership may transfer to the consumer afterward, or the RESCO may sell excess power to the grid under a power purchase agreement.

The ULA model involves DISCOMs, state governments, or designated entities installing rooftop solar systems for individual households. CFA applies to installations up to 3 kW capacity. Non-residential consumers, including government and commercial entities, are ineligible for CFA.

Eligible rooftop solar systems must be grid-connected and installed on roofs, terraces, balconies, or elevated structures. Special systems like Building Integrated PV (BiPV) and metered installations such as group net metering and virtual net metering are also eligible, provided they meet DISCOM approval. Additional technologies like small wind hybrids or solar trackers may be included, but CFA calculations will depend solely on solar module capacity.

To qualify for CFA, installations must use domestically manufactured modules and cells that meet the Domestic Content Requirement (DCR). Non-DCR modules will render installations ineligible. RESCO operators must submit an OEM declaration confirming compliance with DCR standards. Pre-existing rooftop solar installations are not eligible for CFA. The ministry has allocated ₹100 crore for a payment security mechanism (PSM) to ensure secure payments for projects under the ULA model. RESCOs contracted through transparent bidding must contribute a one-time ₹2,000 fee per installation to the PSM corpus.

This scheme aims to increase rooftop solar capacity, diversify energy resources, and support state governments and DISCOMs in expanding clean energy access.