PM Surya Ghar Yojana: Expanding Solar Rooftops With ₹75,021 Crore CFA For Residential Consumers

The Government of India introduced the PM Surya Ghar: Muft Bijli Yojana on February 29, 2024, to boost solar rooftop capacity and empower residential households to generate their electricity. With a financial outlay of ₹75,021 crore, the scheme will be implemented until FY 2026-27. It includes Central Financial Assistance (CFA) for residential consumers and provisions for Renewable Energy Service Company (RESCO) and Utility Led Aggregation (ULA) models to expand rooftop solar installations.

Under the RESCO model, third-party entities make initial investments in rooftop solar systems, which are installed, maintained, and operated for a minimum of five years. Consumers pay only for electricity consumed or receive compensation for roof usage. DISCOMs facilitate the process, ensuring integration with the grid and managing tariffs. The ULA model, on the other hand, allows state utilities or government entities to aggregate demand and install solar systems on behalf of consumers. These systems can either remain utility-owned during the project period or be transferred to consumers after completion.

A Payment Security Mechanism (PSM) has been established with a corpus of ₹100 crore to ensure timely payments to RESCO developers. This measure aims to mitigate risks and encourage investments in rooftop solar projects. The scheme also mandates the use of domestically manufactured solar modules to qualify for CFA, supporting the domestic solar industry.

The initiative promotes net metering, group metering, and virtual net metering for efficient energy use. Consumers and developers must comply with technical specifications and regulatory requirements. The scheme targets installations of up to 3 kW per household, emphasizing small-scale residential adoption.

By fostering consumer participation, supporting state-led models, and ensuring payment security, the PM Surya Ghar scheme aims to significantly expand India’s solar rooftop capacity, contributing to clean energy adoption and energy independence.