Empowering Rural India: Launch Of Model Solar Village Initiative Under PM Surya Ghar Scheme – MNRE

The Government of India has introduced the PM Surya Ghar: Muft Bijli Yojana to enhance the adoption of rooftop solar plants across one crore households, with a substantial financial allocation of ₹75,021 crore. This initiative, approved on 29th February 2024, aims to significantly boost the use of solar energy in residential areas, allowing households to generate their own electricity and decrease their dependence on traditional power utilities. The program is set to run until the financial year 2026-27 and includes a component known as the “Model Solar Village.”

Under this component, the government plans to establish one Model Solar Village in every district throughout the country. The primary goals of this initiative are to solarize one village per district, encourage the use of solar rooftops, and provide green energy access to rural areas. By doing so, the program seeks to make villages more self-sufficient in their energy needs, ultimately helping them save on energy costs and reduce their reliance on conventional power sources. Additionally, these model villages will serve as benchmarks for other villages to emulate.

The initiative involves an allocation of ₹800 crore, with each selected Model Solar Village eligible for a central financial assistance of ₹1 crore. To qualify for this designation, a village must be a revenue village with a population exceeding 5,000, according to the latest census. However, special provisions are in place for regions with smaller populations, such as the North East states, Jammu & Kashmir, Ladakh, and other special category areas, where villages with populations above 2,000 are also eligible.

The implementation of this scheme will be overseen by the State Renewable Energy Development Agency or another designated entity if such an agency does not exist in the state. The selection process for these model villages will be conducted in a challenge mode. Villages in each district will be encouraged to install distributed solar energy systems, including those covered under PM Surya Ghar: Muft Bijli Yojana and other government schemes like PM-KUSUM. At the end of the competition period, villages will be evaluated based on the total renewable energy capacity installed. The village with the highest capacity within its boundaries will be chosen as the Model Solar Village for that district.

To ensure smooth implementation, a District Level Committee (DLC) will be formed to oversee and coordinate the scheme at the district level. This committee will identify candidate villages eligible for consideration and facilitate their participation in the competition. Potential candidate villages will be selected based on feasibility, community mobilization, and interest, with the competition period lasting six months after the selection of candidates. The DLC will guide the process, including mobilizing local communities and leveraging available resources to maximize solar technology adoption.

During the competition, local Panchayats, cooperatives, and self-help groups will engage in activities to promote the adoption of solar technologies and increase renewable energy deployment. The DLC may seek additional funds from various sources, such as corporate social responsibility funds and district-level resources, to support the deployment of renewable energy in these villages. After the competition, the final assessment will determine the village with the highest renewable energy capacity.

The chosen Model Solar Village will receive ₹1 crore in central financial assistance. The State Renewable Energy Development Agency or the designated entity will then develop a Detailed Project Report (DPR) to transition the village to a fully solar-powered community. The DPR will outline the integration of various renewable energy technologies based on local needs, including community solar plants, solar-powered equipment for livelihoods, government building rooftop solar systems, and public lighting.

The implementation of the DPR will involve several phases, including securing funding and establishing settlement mechanisms with power distribution companies. The aim is for the village to achieve self-sufficiency in electricity, striving for net-zero electricity consumption where the energy generated matches the village’s consumption on an annual basis.

The DLC will oversee the implementation of the DPR, ensuring that all projects are completed within one year of approval. The central financial assistance will be released in three stages: 40% upon the award of work, 40% after project completion and certification by the DLC, and the remaining 20% after six months of operational success. Expenditure must be accounted for within six months of receiving each installment, and any interest or charges will be remitted to the Consolidated Fund of India. The Ministry of New and Renewable Energy may amend these guidelines or issue clarifications as needed to facilitate the smooth execution of the scheme.

Please view the document here for more details.