Operational Guidelines For PM Surya Ghar: Muft Bijli Yojana – Streamlining Service Charge Implementation For Rooftop Solar Success

The MNRE issued operational guidelines for the “Service Charge” component under the PM Surya Ghar: Muft Bijli Yojana, following the order dated March 16, 2024. The scheme aims to install rooftop solar plants in one crore households, with a financial outlay of ₹75,021 crore. The guidelines outline the implementation of the service charge component. The scheme has received approval from the competent authority and aims to enhance India’s solar energy adoption.

The PM Surya Ghar: Muft Bijli Yojana is a scheme introduced by the Government of India to promote solar rooftop installations in residential households. Approved on 29th February 2024, this initiative aims to empower households to generate their electricity through solar energy, thereby increasing the share of rooftop solar capacity across the country. The scheme, which has a budget of ₹75,021 crore, is set to be implemented until the financial year 2026-27. The primary agencies involved in its execution include the National Programme Implementation Agency (NPIA) at the national level and the State Implementation Agencies (SIA) at the state level.

One of the key components of this scheme is the provision of Central Financial Assistance (CFA) for residential consumers. The CFA is facilitated through the National Portal, helping residents access financial support for installing solar panels on their rooftops. Other notable components of the scheme include the Model Solar Village initiative, a Payment Security Mechanism, and support for innovative projects. Each of these components is set to have its implementation guidelines to ensure effective execution.

Given the complexity of managing such a large-scale program, financial support in the form of service charges has been allocated to various agencies responsible for its implementation. Specifically, ₹657 crore has been allocated to cover these service charges. The NPIA is tasked with utilizing this fund to manage and implement the scheme, with a focus on deploying resources, IT systems, and manpower to ensure smooth operations. For its efforts, the NPIA is entitled to a 5% service charge, amounting to Rs 32.85 crore, which will be disbursed in equal annual installments over three years.

At the state level, the SIAs, typically represented by distribution utilities, are also provided with financial assistance. They will receive ₹200 crore from the total service charge allocation, which will be distributed based on the number of domestic consumers in their jurisdiction or a minimum of Rs 50 lakh, whichever is higher. This is aimed at ensuring the SIAs have the necessary administrative and operational capacity to support the scheme’s implementation. In cases where multiple agencies are involved at the state level, provisions allow for the reallocation of service charges among the various entities.

The Model Solar Village component, another innovative aspect of the scheme, will be implemented by state renewable energy development agencies or other agencies chosen by the state government. These agencies will receive ₹5 lakh per village upon successful completion of the project, with this amount increasing to ₹7.5 lakh for special category states and Union Territories, including Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and regions in the North-East.

The scheme emphasizes transparency and accountability in the utilization of service charges. The funds will be used for various activities, including upgrading IT systems, enhancing the administrative capacity of agencies, and facilitating inspections and monitoring of solar installations. Regular audits, third-party verifications, and the development of call centers for grievance redressal are also part of the plan to ensure effective implementation. Both the NPIA and the SIAs are required to submit detailed reports on their utilization of service charges, ensuring that all expenditures are accounted for and in line with the scheme’s objectives.

To ensure continued effectiveness, the Ministry of New and Renewable Energy (MNRE) retains the right to amend the guidelines for the service charge component as needed. This allows for flexibility in response to evolving needs during the scheme’s implementation.