MNRE Sets Terms for Real Estate Developers to Avail CFA Under PM Surya Ghar

REC may establish additional documentary requirements

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The Ministry of New and Renewable Energy (MNRE) will extend Central Financial Assistance (CFA) to real estate developers/promoters only after the submission of an undertaking that the rooftop solar asset supported under the PM Surya Ghar: Muft Bijli Yojana will be handed over to the group housing society/residential welfare association.

The developers/ promoters must submit an undertaking stating that benefits from rooftop solar subsidy will be passed on to the residents through reduced charges/tariffs for the electricity used for common facilities in housing complexes.

The nodal agency, REC, may also notify additional documentary requirements to meet the program guidelines and authenticate the subsidy claimants.

In June 2024, MNRE issued the operational guidelines for the CFA under the program, which stated that the subsidy support under the PM Surya Ghar program would be extended only if the rooftop solar asset was dedicated to common facilities in group housing complexes and not for use by individual residents.

The national rooftop solar portal will make the necessary changes to incorporate the process flow.

In February 2024, the ministry clarified that residential rooftop solar applications submitted before February 13, 2024, will not be eligible for CFA under the PM Surya Ghar program.

The PM Surya Ghar program was announced in February this year with an allocation of ₹750.21 billion (~$8.88 billion). It aims to cover 10 million households with rooftop solar systems by 2026-27.

In September 2024, MNRE clarified that residential rooftop solar installations with battery storage are also eligible for CFA under the program. It said hybrid inverters could also be installed per provisions issued by the State Electricity Regulatory Commissions for rooftop solar projects.

India added 1.1 GW of rooftop solar capacity in the first half of the 2024 calendar year, which is the highest half-yearly installation to date, according to Mercom India’s newly released Q2 2024 India Rooftop Solar Market Report.

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