Operational Guidelines For Incentives To Local Bodies Under The PM Surya Ghar: Muft Bijli Yojana

The Government of India has launched the PM Surya Ghar: Muft Bijli Yojana, approved on 29th February 2024, aimed at increasing the adoption of solar rooftop systems in residential households. With a total financial outlay of ₹75,021 crore, the scheme is set to be implemented until the fiscal year 2026-27. A vital component of this initiative is the allocation of ₹1,000 crore for incentives to local bodies. This component is designed to motivate Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs) at the Gram Panchayat level to actively promote the installation of residential rooftop solar systems within their jurisdictions.

The scheme’s guidelines emphasize the involvement of local governance functionaries, who are tasked with engaging key stakeholders such as DISCOMs, banking institutions, consumers, Residential Welfare Associations, local contractors, and community members. Their role includes promoting, developing, and managing solar rooftop projects, as well as providing training on technical, financial, and regulatory aspects of solar energy to enhance local expertise and knowledge in adopting rooftop solar systems (RTS).

The scheme’s objectives focus on encouraging local bodies in both rural and urban areas to participate actively in promoting the scheme and creating a positive stake in its implementation. The aim is to leverage the capacities of local bodies to reach out to electricity consumers and facilitate ground-level convergence through local body interventions.

The implementation guidelines for the “Incentives for Local Bodies” component specify that incentives will be provided to various Urban Local Bodies, including Municipal Corporations, Municipal Councils, Nagar Panchayats, and other ULBs recognized by the Ministry of Housing and Urban Affairs, as well as Panchayati Raj Institutions at the Gram Panchayat level. Each residential installation within the jurisdiction of these local bodies, for which Central Financial Assistance is transferred to the consumer through the National Portal, will be considered for calculating the incentives.

The National Programme Implementation Agency is responsible for overseeing this scheme component, ensuring that each installation receives an incentive only once. Local bodies are expected to promote the scheme within their areas through activities such as door-to-door mobilization, spreading awareness through field units, and hosting local events to bring together vendors, banks, and DISCOMs for efficient application processing and implementation. Local bodies are also encouraged to play a significant role in demand generation, facilitation with financial institutions, community mobilization, awareness creation, and coordination with DISCOMs. Additionally, engagement with schools, local businesses, industries, civil society organizations, and other media and communication channels is promoted.

To ensure effective monitoring, a District Level Committee chaired by the District Magistrate will oversee the activities undertaken by their respective ULBs and PRIs for promoting the scheme. The National Programme Implementation Agency will also be responsible for the release of grants. Financial assistance will be provided directly to Gram Panchayats or Urban Local Bodies in their respective areas, with an incentive of ₹1,000 per installation. These local bodies are required to upload their authorized account details on the National Portal, or existing authorized databases with the Ministry of Panchayati Raj, and the Ministry of Housing and Urban Affairs will be integrated to facilitate the direct transfer of incentives to the concerned accounts.

The guidelines provide for the Ministry of New and Renewable Energy (MNRE) to make necessary amendments or issue clarifications to address any implementation difficulties, with approval from the Hon’ble Minister of New and Renewable Energy.