The Union Ministry of New and Renewable Energy (MNRE) has announced the Scheme Guidelines for the implementation of the ‘Payment Security Mechanism’ (PSM) and ‘Central Financial Assistance’ (CFA) components under the PM-Surya Ghar: Muft Bijli Yojana. The guidelines aim to support the installation of rooftop solar plants through two alternative models: the Renewable Energy Service Company (RESCO) model and the Utility-Led Aggregation (ULA) model.
The RESCO model allows third-party entities to invest in rooftop solar installations, with consumers only paying for the electricity they consume, without incurring upfront costs. In contrast, the ULA model enables Distribution Companies (DISCOMs) or state-designated entities to install rooftop solar systems on behalf of residential households.
To incentivize the RESCO model, the scheme allocates a ₹100 crore corpus fund for the Payment Security Mechanism (PSM), designed to de-risk investments in grid-connected rooftop solar projects for the residential sector. This fund can be supplemented with additional grants and funds, subject to Ministry approval.
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