New Payment Models Introduced for PM-Surya Ghar Solar Scheme

16 Jan 2025 CW Team

The Ministry of New & Renewable Energy has announced updated guidelines under the PM-Surya Ghar: Muft Bijli Yojana, introducing two additional payment models for the installation of rooftop solar systems. The move aims to ensure payment security and streamline subsidy grants for households adopting solar energy.

The new models include the Renewable Energy Service Company (RESCO) and utility-led aggregation (ULA) approaches. These alternatives complement the existing consumer-driven capex mode available through the national portal.

According to an official statement, Rs 1 billion has been allocated for a Payment Security Mechanism (PSM) to mitigate risks associated with investments in RESCO-based grid-connected rooftop solar installations in the residential sector. This fund may be supplemented with additional grants and sources upon approval.

Key features

RESCO Model: In this setup, third-party entities fund rooftop solar installations, allowing consumers to pay only for the electricity consumed without bearing upfront costs.
Utility-Led Aggregation Model: Power distribution companies or state-designated entities install rooftop solar systems on behalf of individual households, simplifying adoption for end-users.

The ministry emphasised that these new implementation methods will enhance the program’s reach and effectiveness while ensuring seamless integration with the national portal-based capex approach.

This initiative underscores the government’s commitment to accelerating rooftop solar adoption in residential sectors and advancing India’s renewable energy goals.

(Business Standard)

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