The Ministry of New and Renewable Energy (MNRE) has limited solar projects under the PM Surya Ghar: Muft Bijli Yojana in utility-led aggregator (ULA)/renewable service company (RESCO) mode to rooftop solar power projects.

Ground-mounted projects, or any other aggregator models like community solar or off-site installations, can only be included under the ULA/RESCO mode under the program with the explicit permission of MNRE.

The Ministry has also limited solar power projects under the program in capital expenditure (CAPEX) mode to ground-mounted and elevated solar power projects.

Earlier, all types of solar installations were permitted under RESCO/ULA as well as CAPEX mode.

In December 2024, MNRE  issued guidelines for implementing two critical components of the PM Surya Ghar program. The first component pertains to the central financial assistance (CFA) for residential consumers eligible under the RESCO and ULA models. The second component involves the payment security mechanism to cover defaults and delays and ensure timely payments to RESCO developers.

Under the RESCO model, a third-party developer must finance, install, and maintain the rooftop solar system for at least five years, during which the consumer is not the system’s owner. ULA models involve utilities or state entities installing rooftop solar systems for households.

In July 2025, Union Minister of New and Renewable Energy Pralhad Joshi said that the government will soon announce a utility-led program under the PM Surya Ghar program to enable households without suitable rooftop space to benefit from the program.

Launched in February 2024, the PM Surya Ghar program aims to provide financial support for the installation of rooftop solar systems in 10 million households by 2026-27.

In January 2025, the program completed one year of significant progress in promoting rooftop solar adoption nationwide. As of January 27, 2025, 846,000 households had installed rooftop solar systems under the program.