MNRE revises PM-Surya Ghar guidelines to ease fund flow and expand rural eligibility

The Ministry of New and Renewable Energy (MNRE) has amended operational guidelines for two components of the PM-Surya Ghar: Muft Bijli Yojana—Incentives for Local Bodies and Model Solar Village. The changes, issued through official memoranda dated July 22, 2025, and July 18, 2024, aim to address implementation gaps and clarify eligibility.

Incentives for Local Bodies

As per the revised Clause 6(c), the National Programme Implementation Agency (NPIA) will now release funds to State Implementation Agencies (SIAs) based on the number of rooftop solar (RTS) installations in their jurisdictions. SIAs must then distribute these funds to Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) within 60 days.

This change removes the earlier requirement for ULBs and PRIs to upload their bank account details on the National Portal, streamlining disbursement. The component has a budget of ₹1,000 crore, with each eligible installation attracting an incentive of ₹1,000 to promote local-level solar adoption.

Model Solar Village revisions

Eligibility for Model Solar Villages has been refined. Villages must now have a population over 5,000, or over 2,000 in special category states and union territories. In districts with fewer than 10 eligible villages, the most populous villages may be nominated.

District Level Committees (DLCs) are also permitted to designate “Model Solar Panchayats” to extend reach. Participating villages will compete to deploy the highest capacity of distributed solar systems. The top-performing village will receive ₹1 crore in Central Financial Assistance (CFA) for public renewable energy assets such as streetlights, community plants, and solar-powered agricultural pumps.