MNRE Revises Service Charge Rules To Strengthen Implementation Of PM-Surya Ghar Solar Scheme

The Ministry of New and Renewable Energy (MNRE) has recently announced important amendments to the operational guidelines for the “Service Charge” component under the PM-Surya Ghar: Muft Bijli Yojana. This scheme, which was approved in February 2024 with a total financial outlay of ₹75,021 crore, is aimed at installing rooftop solar plants in one crore households across India. To facilitate the large-scale implementation of this initiative, a service charge component equivalent to 1% of the Central Financial Assistance (CFA), amounting to ₹657 crore, has been earmarked to support the implementation agencies responsible for the scheme.

The updated guidelines provide clarity on the role of State Implementation Agencies (SIAs). Primarily, these agencies are the distribution utilities, commonly known as DISCOMs, operating within each state or union territory. However, the amendments now allow state governments to nominate a State Renewable Energy Development Agency as an additional SIA. From the total service charge budget, ₹200 crore is specifically allocated as a base service charge for these SIAs. The allocation is determined in proportion to the number of domestic consumers in each state or union territory, with a minimum guaranteed amount of ₹50 lakh for every SIA. These funds are released in three equal annual installments at the start of each financial year, enabling SIAs to build administrative capacity and deploy dedicated resources at the field level for smooth execution of the scheme.

In addition to household installations, the guidelines also cover the “Model Solar Village” component. For this, State Renewable Energy Development Agencies or other state-decided entities are appointed as implementing agencies. The service charge for each village is fixed at ₹5 lakh, while special category states and union territories, including Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, the North Eastern states, Sikkim, and the Andaman, Nicobar, and Lakshadweep Islands, receive an increased amount of ₹7.5 lakh per village. To facilitate initial activities, 50% of this charge is released once the village is selected by the District Level Committee (DLC), covering tasks like the preparation of Detailed Project Reports (DPRs). The remaining 50% is disbursed along with the final financial installment for the development of the village.

The National Programme Implementation Agency (NPIA) also benefits from a dedicated portion of the service charge. It receives a base service charge of 5% of the overall outlay, which is approximately ₹32.85 crore, with an option to receive an additional 5% to support management and infrastructure needs. These funds are intended to cover a range of activities, including the deployment of IT systems, management of project units, vendor coordination, and conducting third-party evaluations.

To ensure proper utilization of funds, SIAs are required to share an adequate portion with field units at the division and sub-division levels. This helps upgrade infrastructure, expand inspection teams, and strengthen overall monitoring and implementation of the scheme. Agencies must also maintain accountability by submitting periodic reports to the MNRE, including Utilization Certificates and Audited Statements of Expenditure.

These amendments aim to streamline the administrative processes under the PM-Surya Ghar: Muft Bijli Yojana, ensuring that both household and village-level solar installations are implemented efficiently, with proper monitoring and resource allocation at every stage. By providing structured service charges and clear guidelines for fund utilization, the MNRE seeks to accelerate India’s transition towards clean and renewable energy while empowering state and field-level agencies to execute the program effectively.