The Ministry of New and Renewable Energy (MNRE) has invited comments and suggestions on the draft guidelines for implementing the PM-Surya Ghar: Muft Bijli Yojana in the residential rooftop solar segment. The last date for receiving the comments/suggestions is April 30, 2024.

The Government of India launched the program on February 13, 2024. It aims to install rooftop solar projects in ten million households at a cost of ₹752.01 billion (~$8.9 billion).

The previous Phase II of the grid-connected rooftop solar program will be subsumed under the current program, along with the remaining financial outlay and liabilities, effective from the program’s launch.

The financial outlay for the program includes nine sub-components.

The program would be implemented through the National Portal.

The breakdown of central financial assistance (CFA) is as follows:

• Residential sectors with a tender capacity of up to 2 kW or part thereof will receive 60% of the benchmark cost of 2 kW.
• Additional tender capacity in the residential sector (up to 1 kW) will qualify for 40% of the benchmark cost of the additional kW.
• No additional CFA will be provided for residential sectors beyond 3 kW.
• Group housing societies and residential welfare associations (GHS/RWA) for shared facilities, including EV charging, up to 500 kW [@₹3 (~$0.035)/kW per house], are eligible for 40% of the benchmark cost of additional kW.

Based on the benchmark cost for FY 2023-24, rooftop solar projects up to 2 kW in households receive ₹30,000 ($361.85)/kW or part thereof, while additional capacity between 2 kW and 3 kW is eligible for ₹18,000 ($217.12)/kW. GHS/RWA will receive ₹18,000 ($217.12)/kW as central financial assistance.

The funds for the CFA and other disbursements related to the program will originate from the budget designated for the rooftop solar phase II program until a separate budget is allocated for it.

The program will be implemented until March 31, 2027, when all claims must be settled.

Eligibility

Suppose a household previously installed a rooftop solar system of 1 kW capacity under the Phase 2 grid-connected rooftop solar program and received a subsidy of ₹14,588 ($174.26) and later increases the total capacity to 4 kW. In that case, it can claim additional subsidy only for the additional 2 kW capacity under the current program, amounting to ₹48,000 ($573.42).

Similarly, suppose a household initially installs a 1 kW system and receives a subsidy of ₹30,000 ($358), subsequently expanding the total capacity to 4 kW. In that case, it can claim additional subsidy only for the additional 2 kW capacity, totaling ₹48,000 ($573).

A rooftop solar installation can receive CFA only once after installation. If an already installed rooftop solar system is relocated to a new location, it will not be eligible for CFA under the program.

The program aims to assist in installing grid-connected rooftop solar projects in the residential sector by providing central financial support from the government. However, no CFA will be extended to non-residential segments of consumers, including the government, commercial, and industrial sectors.

Vendors must register on the National Portal, where they can specify their operational states and districts.

Upon registration, vendors must submit a bank guarantee according to the type of registration:

For state-based vendor registration, each state or union territory requires a bank guarantee of ₹250,000 (~$2,989).

For national vendor registration, a bank guarantee of ₹2.5 million (~$29,892) is required for all States/Union Territories.

As vendors install capacity through the National Portal, the bank guarantee requirement will be adjusted based on the installed capacity:

• For installations ranging from 0 to 200 kW, the existing initial bank guarantee will apply.
• For installations between 200 kW and 1,000 kW, a bank guarantee of ₹1.5 million (~$17,933) will be required.
• For installations between 1000 kW and 5,000 kW, a bank guarantee of ₹5 million (~$59,773) will be required.
• For installations exceeding 5000 kW, a bank guarantee of ₹10 million (~$119,547) will be required.

Vendors can respond to beneficiaries’ expressions of interest, manage their project portfolios, showcase offered rooftop solar systems with pricing details, display their history of completed projects, and provide other relevant information for the beneficiaries’ benefit.

The implementing agency (State DISCOM or designated agency), MNRE officials, or any other authorized agency may conduct inspections of ongoing installations or installed plants.

Technical Specifications

A rooftop solar system should include components such as solar photovoltaic modules, inverter/microinverters, module mounting structures, energy meters, array junction boxes, DC distribution boxes, AC distribution boxes, protections—earthing, lightning, surge, cables, drawings and manuals, and any other necessary components based on site requirements.

Projects must be commissioned according to technical specifications published by MNRE.

Vendors will be responsible for any deficiencies or negligence/malpractice leading to bank guarantee encashment, profile deactivation, vendor blacklisting, or other disciplinary actions.

Vendors must rectify any deficiencies in the system that result in non-disbursal of CFA or non-commissioning by the DISCOM due to quality/component issues.

A prerequisite for CFA eligibility is using domestic modules manufactured from domestic cells as per domestic content requirements. No CFA will be disbursed if this requirement is not met.

MNRE may periodically notify the approved list of modules and inverters eligible for CFA based on specified technical criteria to prevent vendors from supplying poor-quality equipment.

Vendors must use one of these approved modules and inverters in all projects installed under the scheme.

Original equipment manufacturers (OEM) of enlisted inverters must share generation data reporting from their systems via API integration with the National Portal.

Data generated and transmitted by these inverter systems should be integrated with the National Portal to enhance services for beneficiaries.

Registered vendors must provide repair/maintenance services free of charge for five years from the commissioning date.

Consumers undertaking installations by bearing the capital expenditure, either by themselves or through the assistance of a bank loan and the upfront payment made to a registered vendor, will be considered projects undertaken in CAPEX mode.

All CFA requests for such projects must be made on the National Portal.

Non-performing/under-performing PV panels will be replaced free of charge during the warranty period. Beneficiaries will receive specified warranties from OEMs on system components for any future replacement of malfunctioned components.

Both beneficiaries and vendors have the option to raise grievances through the National Portal. These grievances will then be directed to the State Implementation Agency for resolution via a two-tier escalation matrix.

(The article is updated with the revised deadline from April 23 to April 30, 2024)