MNRE proposes payment security for PM Surya Ghar solar projects

10 Sep 2024 CW Team

The Rs 750 billion rooftop solar initiative, approved by the Union Cabinet earlier this year, is expected to benefit 10 million families across India. The primary goal of the scheme is to encourage the installation of grid-connected rooftop solar systems with financial backing from the Central Government.

In the RESCO model, a renewable energy company will be responsible for procuring, installing, and maintaining rooftop solar systems for a minimum of five years. Consumers will pay only for the electricity generated, based on a tariff set by the RESCO operator, and may also receive compensation for roof utilization rights. After the project period, the solar plant's ownership may either be transferred to the consumer or the RESCO may enter into an agreement with a distribution company (discom) to sell the power generated back to the grid through a power purchase agreement.

In the utility-led model, state discoms will own the rooftop solar systems for at least five years before transferring ownership to the households. The guidelines state that grid-connected rooftop solar systems linked to a residential power connection of a local discom?including installations on rooftops, terraces, balconies, or elevated structures?are eligible for Central financial assistance.

Additionally, installations under group net metering and virtual net metering mechanisms are eligible for financial aid from the Central Government. The draft guidelines aim to establish an implementation framework that supports installations through the RESCO and ULA models for rooftop solar systems in designated consumer categories.

The draft also mentions that rooftop solar installations may integrate additional technology components like small wind hybrids, battery storage, and solar tracker systems. However, the Central financial assistance (CFA) will be calculated based on the CFA structure for the installed capacity of solar modules. Households with existing rooftop solar systems will not be eligible under the RESCO and ULA models.

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The Ministry of New and Renewable Energy (MNRE) has released draft guidelines outlining the provisions for central financial assistance and payment security mechanisms under the ?PM Surya Ghar?Muft Bijli Yojana? rooftop solar scheme. This scheme offers two models: the Renewable Energy Services Company (RESCO) model and the Utility-Led Aggregation (ULA) model. The guidelines were made public to invite comments and suggestions, with a deadline set for September 17. The Rs 750 billion rooftop solar initiative, approved by the Union Cabinet earlier this year, is expected to benefit 10 million families across India. The primary goal of the scheme is to encourage the installation of grid-connected rooftop solar systems with financial backing from the Central Government. In the RESCO model, a renewable energy company will be responsible for procuring, installing, and maintaining rooftop solar systems for a minimum of five years. Consumers will pay only for the electricity generated, based on a tariff set by the RESCO operator, and may also receive compensation for roof utilization rights. After the project period, the solar plant's ownership may either be transferred to the consumer or the RESCO may enter into an agreement with a distribution company (discom) to sell the power generated back to the grid through a power purchase agreement. In the utility-led model, state discoms will own the rooftop solar systems for at least five years before transferring ownership to the households. The guidelines state that grid-connected rooftop solar systems linked to a residential power connection of a local discom?including installations on rooftops, terraces, balconies, or elevated structures?are eligible for Central financial assistance. Additionally, installations under group net metering and virtual net metering mechanisms are eligible for financial aid from the Central Government. The draft guidelines aim to establish an implementation framework that supports installations through the RESCO and ULA models for rooftop solar systems in designated consumer categories. The draft also mentions that rooftop solar installations may integrate additional technology components like small wind hybrids, battery storage, and solar tracker systems. However, the Central financial assistance (CFA) will be calculated based on the CFA structure for the installed capacity of solar modules. Households with existing rooftop solar systems will not be eligible under the RESCO and ULA models.

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