PM-Surya Ghar: Govt approves 2 alternative payment methods for rooftop solar installation

New Delhi: The Ministry of New & Renewable Energy has come out with new guidelines, allowing two more payment methods for the installation of rooftop solar system under PM-Surya Ghar: Muft Bijli Yojana.

The move will ensure payment security as well as the grant of subsidy to households in case of payments through Renewable Energy Service Company (RESCO) and utility-led aggregation models.

The ministry has notified scheme guidelines for implementation of 'Payment Security Mechanism' component and 'Central Financial Assistance' component for RESCO models/ utility-led aggregation models under PM-Surya Ghar: Muft Bijli Yojana, an official statement said.

Under this scheme, Rs 100 crore has been earmarked for payment security mechanism (PSM) for de-risking investments in RESCO-based grid-connected rooftop solar models in residential sectors, which may be supplemented through other grants, funds and sources after due approval, the statement said.

Under the RESCO model, third-party entities invest in rooftop solar installations, enabling consumers to pay only for the electricity consumed without bearing the upfront costs.

Under the utility-led aggregation (ULA) model, power distribution companies or state designated entities install rooftop solar projects on behalf of individual households.

The ministry further clarified that these guidelines are in addition to the existing mode of implementation undertaken by consumers (capex mode) through the national portal and said these alternative models will supplement the national portal-based implementation of the scheme.