MNRE Issues Few Operational Guidelines Under Rooftop Solar Scheme

The Ministry of New and Renewable Energy (MNRE) has issued operational guidelines on the ‘Payment Security Mechanism’ component and ‘Central Financial Assistance’ component for RESCO Models/ Utility Led Aggregation Models under PM-Surya Ghar: Muft Bijli Yojana. The implementation period of the scheme is till March 31, 2027. 

Two alternative models have been offered for installation of rooftop solar plants for consumers: the RESCO (Renewable Energy Service Company) model and the Utility-Led Aggregation (ULA) model. Third-party entities invest in RESCO, and in ULA, DISCOMs or state-designated entities install rooftop solar projects on behalf of individuals. In RESCO, the upfront cost is negated since consumers pay only for the electricity consumed. ₹100 crore corpus fund has been earmarked for Payment Security Mechanism (PSM) for de-risking investments in RESCO models.

These guidelines intend to leverage payment security mechanisms to ensure timely payments to RESCO developers and enable DISCOMS/State Governments/State Designated Entities to support rooftop solar development. They are in addition to the existing mode of implementation through the national portal, and these alternatives supplement it.

The government of India had launched the PM Surya Ghar: Muft Bijli Yojana in February 2024 with an outlay of over Rs. 75,000 crore, seeking to “light up 1 crore households by providing up to 300 units of free electricity every month.”