The Ministry of New and Renewable Energy (MNRE) has allocated ₹10 billion (~$119.5 million) to incentivize Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) to actively promote and facilitate the adoption of residential rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana.

The PM Surya Ghar: Muft Bijli Yojana, approved in February this year, is a comprehensive scheme designed to enhance rooftop solar capacity across India. With a total financial outlay of ₹750.21 billion (~$8.9 billion), the program targets the installation of rooftop solar systems in 10 million households by FY 2026-27.

The incentive program aims to encourage local governance structures in urban and rural areas to promote the program.

It seeks to utilize the capacities of local bodies to reach out to electricity consumers and create convergence at the grassroots level through their interventions. It is expected that local governance functionaries will be able to converge stakeholders, including distribution companies, banking institutions, consumers and residential welfare associations, local contractors, and community members, to effectively promote, develop, and manage rooftop solar projects and provide training opportunities on technical, financial, and regulatory aspects of solar energy.

Implementation

The implementation guidelines for this component are as follows:

• Eligible Entities: Urban Local Bodies (Municipal Corporations, Municipal Councils, Nagar Panchayats, and other recognized ULBs) and Panchayati Raj Institutions (Gram Panchayats) are eligible for incentives.
• Incentive Calculation: Each rooftop solar installation in the residential segment for which Central Financial Assistance (CFA) has been transferred to the consumer through the National Portal will be counted towards the incentive calculation for the respective ULB/PRI.
• Incentive Amount: Local bodies will receive ₹1000 (~$11.95) per installation within their jurisdiction.
• Promotion Activities: ULBs and PRIs must undertake door-to-door mobilization, Information, Education, and Communication (IEC) campaigns and organize local events to facilitate quick processing of applications and implementation.
• Stakeholder Convergence: Local bodies should work to bring together vendors, banks, DISCOMs, and other stakeholders to streamline the installation process and enhance community engagement.

Monitoring and Fund Release

The monitoring and fund release mechanisms include:

District Level Committees: Chaired by the District Magistrate, these committees will oversee the promotional activities undertaken by ULBs and PRIs.

Direct Financial Support: Financial assistance will be provided directly to the authorized accounts of ULBs and PRIs. These entities must upload their account details on the National Portal or integrate existing databases to ensure seamless transfer of funds.

In June, MNRE issued the operational guidelines to implement the PM Surya Ghar: Muft Bijli Yojana for the component “Central Financial Assistance to residential consumers.”

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