Ministry of New and Renewable Energy Notifies Guidelines for ‘Incentives to DISCOMs’ under PM-Surya Ghar: Muft Bijli Yojana

New Delhi: The Ministry of New and Renewable Energy (MNRE) has officially notified the guidelines for the implementation of ‘Incentives to DISCOMs’ under the PM-Surya Ghar: Muft Bijli Yojana. This announcement marks a significant step towards enhancing India’s renewable energy infrastructure, with an outlay of Rs 75,021 crore dedicated to the scheme, which is set to be implemented until FY 2026-27.

Under this scheme, Distribution Companies (DISCOMs) are designated as State Implementation Agencies (SIAs). Their responsibilities include ensuring the availability of net meters, conducting timely inspections, and overseeing the commissioning of rooftop solar installations. A substantial portion of the budget, Rs 4,950 crore, is allocated to the ‘Incentives to DISCOMs’ component, which absorbs the previous financial commitments from the Grid Connected Roof Top Solar (GCRT) Phase II programme.

The incentive structure is designed to reward DISCOMs based on their performance in installing additional grid-connected rooftop solar capacity beyond a set baseline. The scheme includes an indicative rewards system to motivate field staff. Specifically, DISCOMs can earn incentives amounting to 5% of the applicable benchmark cost for achieving an additional capacity increase of 10% to 15% over the installed base, and 10% for exceeding 15%. This progressive incentive mechanism is intended to drive higher participation from DISCOMs and foster substantial growth in rooftop solar capacity across the country.

Approved by the Government of India on February 29, 2024, the PM-Surya Ghar: Muft Bijli Yojana aims to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. This initiative is expected to play a crucial role in India’s transition to sustainable energy and in meeting its renewable energy targets.

The notification of these guidelines sets the stage for accelerated deployment of rooftop solar systems, enhancing energy security, and providing economic benefits to residential consumers through reduced electricity bills.