PM-Surya Ghar scheme introduces new payment options

The PM-Surya Ghar: Muft Bijli Yojana is a solar rooftop scheme, aimed to benefit many citizens in the country by providing subsidies.

In order to make rooftop solar installations more accessible, the Indian government has announced new payment options under the scheme.

The Ministry of New & Renewable Energy introduced these additions.

They are designed to ensure secure payments and streamline subsidy disbursement for residential solar projects.

The scheme now allows payments through the Renewable Energy Service Company (RESCO) model and the Utility-Led Aggregation (ULA) model. These options complement the existing consumer-led capital expenditure mode available via the national portal.

• RESCO Model: In this arrangement, third-party companies finance and install the rooftop solar systems. Homeowners only pay for the electricity used, avoiding upfront costs.
• ULA Model: Power distribution companies or state-designated entities manage the installation of solar systems on behalf of households.

To promote these models, the government has allocated ₹100 crore under a Payment Security Mechanism.

This fund minimizes investment risks in RESCO-based grid-connected solar systems for the residential sector. Additional funds may be introduced with necessary approvals.

These guidelines aim to increase adoption by offering secure payment mechanisms and ensuring timely subsidy benefits.

The ministry stated that these models will supplement the national portal’s existing capex implementation approach.

The PM-Surya Ghar scheme reflects India’s commitment to renewable energy and its ambitious solar capacity targets.

The introduction of flexible payment methods seeks to make solar energy adoption more practical for homeowners.

By addressing investment risks and upfront costs, the government hopes to encourage broader participation in rooftop solar initiatives.

This step is part of a larger effort to promote sustainability and reduce dependency on conventional energy sources.

The scheme also aligns with India’s push to expand its renewable energy footprint while providing affordable energy solutions to citizens.

Image from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on February 01, 2017

Image Reference: https://pxhere.com/en/photo/599582