The Ministry of New and Renewable Energy (MNRE) has introduced a ₹5 billion (~$59.7 million) Innovative Projects Component as part of the PM Surya Ghar: Muft Bijli Yojana to showcase and demonstrate cutting-edge solar technologies and applications.

Background and Scope

The PM Surya Ghar: Muft Bijli Yojana, approved on February 29, 2024, program aims to increase the share of rooftop solar capacity and empower households to generate their electricity.

With an outlay of ₹750.21 billion (~$8.9 billion), the program is set to be implemented until the fiscal year 2026-27.

The Innovative Projects Component is designed to identify, fund, and support innovations in both business models and technical deployments of rooftop solar systems.

Objectives and Vision

The Innovative Projects Component has the following objectives:

• Fostering Innovation: The initiative aims to identify and fund groundbreaking innovations in business models and technical deployments of rooftop solar systems.
• Supporting Startups and Institutions: By providing a platform for collaborative pilots, proofs-of-concept, and scaling up of new business models, the component seeks to nurture the growth of startups and institutions in the solar energy sector.
• Creating New Pathways: The project aims to develop new avenues for deploying distributed renewable energy, benefiting households and companies.
• Empowering DISCOMs: A key focus is creating technological and management tools to enable distribution companies (DISCOMs) to manage distributed energy resources within their grids better.

The component supports incorporating cutting-edge technology in real-life rooftop solar and distributed renewable energy deployments.

Financial Outlay and Scope

The government has allocated ₹5 billion (~$59.7 million) for the Innovative Projects Component.

The scope of projects is as follows:

• Blockchain-based peer-to-peer rooftop solar systems
• Digital solutions for rooftop solar management
• Smart building materials integrating solar technology
• Rooftop solar systems integrated with electric vehicles
• Grid-responsive rooftop solar systems with battery storage solutions
• DISCOM IT systems for efficient rooftop solar management
• Special financing products developed in collaboration with financing intermediaries
• Innovative business models such as virtual net metering, group net metering, behind-the-meter storage, and rent-a-roof models.

Eligibility and Application Process

The Innovative Projects Component welcomes proposals from any entity or individual. It also encourages international cooperation, supporting joint research and design initiatives.

The National Institute for Solar Energy (NISE), serving as the Scheme Implementation Agency (SIA), will invite proposals through various channels, including national newspapers, websites, and the National Portal of PM Surya Ghar: Muft Bijli Yojana (https://www.pmsuryaghar.gov.in/)

Selected projects under this component will have a maximum duration of 18 months, with the possibility of extension or reduction as determined by the selection committee.

Financial assistance for innovative projects is capped at 60% of the total project cost or ₹300 million (~$3.5 million), whichever is lower. The selection committee will modify the level of financial assistance based on the specific nature of each project.

Innovation Awards

To further stimulate innovation in the rooftop solar sector, the program will present annual awards with cash prizes:

• First Prize: ₹10 million (~$119,395)
• Second Prize: ₹5 million (~$59,697)
• Third Prize: ₹3 million (~$35,818)
• 10 Consolation Prizes: ₹500,000 (~$5,969)

Selection ProcessThe selection process for innovative projects will be as follows:

• Initial Screening: A screening committee will assess proposals based on relevance, cost-effectiveness, and completeness.
• Expert Evaluation: Shortlisted proposals may undergo examination by subject experts.
• Final Selection: A selection committee headed by the Secretary of MNRE will decide on project approval and funding.

Selection criteria include project concept and novelty, feasibility and practicality, societal value and benefit to citizens, technological agnosticism, and relevance to rooftop solar deployment.

Monitoring and Implementation

The National Institute for Solar Energy will oversee project progress, fund utilization, and timely execution.

A dedicated Monitoring Committee for Innovative Projects (MCIP-PMSG) will assess project implementation, recommend mid-course corrections if necessary, and evaluate the achievements of completed projects.

The MNRE has also allocated ₹10 billion (~$119.5 million) to incentivize Urban Local Bodies and Panchayati Raj Institutions to actively promote and facilitate the adoption of residential rooftop solar systems under the PM Surya Ghar program.