The Ministry of New & Renewable Energy has introduced updated guidelines, adding two new payment options for rooftop solar installations under the PM-Surya Ghar: Muft Bijli Yojana. This development ensures enhanced payment security and facilitates subsidy grants to households using Renewable Energy Service Company (RESCO) or utility-led aggregation (ULA) models.
The scheme now includes a “Payment Security Mechanism” (PSM) and “Central Financial Assistance” to de-risk investments in rooftop solar setups, particularly those based on RESCO or ULA models. A budget of $12 million has been allocated to the PSM, with provisions to supplement these funds through additional grants or resources following due approvals.
In the RESCO model, third-party investors cover the upfront costs of solar installations, allowing consumers to pay only for the energy consumed. Alternatively, the ULA model enables power distribution companies or state-designated entities to install rooftop solar systems on behalf of households.
These newly introduced payment methods complement the traditional consumer-implemented capex model facilitated through the national portal. By expanding payment and implementation options, the government aims to accelerate residential adoption of rooftop solar systems and bolster India’s renewable energy goals.
