MNRE sets new terms for rooftop solar CFA under PM Surya Ghar Yojana
The Ministry of New and Renewable Energy (MNRE) has issued specific guidelines for real estate developers and promoters to access Central Financial Assistance (CFA) under the PM Surya Ghar: Muft Bijli Yojana (PMSGY). The initiative aims to promote widespread adoption of rooftop solar installations in residential housing complexes.
According to the new terms, developers must provide an undertaking that the rooftop solar assets supported under the PMSGY will be handed over to the respective group housing societies or residential welfare associations (RWAs). Additionally, developers are required to ensure that the subsidy benefits translate into reduced electricity charges or tariffs for common facilities within housing complexes, directly benefiting residents.
The guidelines follow the MNRE’s previous steps to accelerate the adoption of residential rooftop solar. In October 2024, the ministry issued an expression of interest (EoI) for vendors under the PMSGY, targeting 10 million residential rooftop solar installations by March 2027.
In September 2024, the MNRE released draft guidelines outlining financial assistance and payment security measures under the scheme. These included CFAs for residential consumers using renewable energy service company (RESCO) models and utility-led aggregation approaches.
Earlier, in June 2024, operational guidelines emphasized that CFA would be provided only if the rooftop solar installations are used for powering common facilities in group housing complexes, excluding individual residential use.
The PMSGY has a target of 10 million rooftop solar installations over the next three years.