REC to Extend ₹1.2 Trillion for Rooftop Solar Panels under Pradhan Mantri Suryoday Yojana

New Delhi: REC Limited, a state-run enterprise, is set to provide financial support of up to ₹1.2 trillion for the installation of rooftop solar panels under the ambitious Pradhan Mantri Suryoday Yojana. Vivek Kumar Dewangan, the Chairman and Managing Director (CMD) of REC, announced this significant initiative during a media briefing on Tuesday.

Dewangan revealed that REC has been appointed as the program implementation agency for the scheme, with a target to cover one crore households within a year. Emphasizing the challenging nature of the task, he highlighted the need for coordination with multiple stakeholders, including rooftop owners, distribution companies, vendors, and financing entities.

As part of the program, eight central public sector undertakings (CPSEs) will set up rooftop solar panels across states. The REC board of directors has approved letters of credit amounting to approximately ₹15,000 crore each for these CPSEs. These companies will actively participate in rooftop solar installations under the Renewable Energy Service Company (RESCO) model.

Dewangan stated, “Today in our board meeting, the board has authorized the management of REC to issue Line of Credit to the central public sector undertakings which are going to act as renewable energy services companies to the tune of about ₹15,000 crore. There are eight CPSEs who are going to implement this solar rooftop. If we are able to give a line of credit of ₹15,000 crore to each company, we are committed that we will be able to give a line of credit up to ₹1.20 lakh crore for the rooftop solar mission.”

The Ministry of New and Renewable Energy will soon release guidelines for the scheme. Prime Minister Narendra Modi had earlier announced the launch of the Pradhan Mantri Suryoday Yojana, aiming to provide rooftop solar installations to 10 million households in the country.

In addition, Dewangan informed reporters that REC has sanctioned approximately ₹1.25 trillion for the renewable energy sector in the current fiscal year. For the quarter ending December, REC reported a net profit of ₹3,269.31 crore, reflecting a 13.6% YoY increase. The total revenue from operations during the third quarter of FY24 stood at ₹11,981.65 crore, marking a 23.58% rise from the same period last fiscal year.