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MNRE issued Operational Guidelines for Implementation of Payment Security Mechanism Component, Central Financial Assistance Component for RESCO/Utility Led Aggregation Models of PM-Surya Ghar Muft Bijli Yojana

The Government of India has approved the PM Surya Ghar: Muft Bijli Yojana on 29th February, 2024 to increase the share of solar rooftop capacity and empower residential households. The scheme has an outlay of Rs 75,021 crore and is to be implemented till FY 2026-27.

The present guidelines have been issued to cover RESCO (Renewable Energy Service Company) models (where a third party entity other than the consumer makes the initial investment, either wholly or partly) or Utility Led/State Led Aggregation Models (ULA) (where a state entity invests wholly or partly on behalf of consumers on an aggregate basis).

Rooftop Solar deployment expansion can also be undertaken by DISCOMs through utility led models wherein the DISCOM plays roles with regards to demand assessment and aggregation, consolidation of procurement from RTS installations (gross, net or other variations in metering) and ownership of RTS plants (on its own or through intermediary contractual intermediaries). These models will be unique to the DISCOM opting for it and will be particularly suitable for large scale installations in cities wherein DISCOMs/State GENCOS/other State entities can invite cluster-based bids for RTS installations that are backed by power purchase agreements with DISCOMs.

The scheme has also created a separate component for Payment Security Mechanism (PSM) for de-risking investments in RESCO based models in RTS. The utilization of the payment security fund are to be done for ensuring timely payments to RESCO developers and to insulate them from delays in settlement of payments from the DISCOMs/contracting party. These guidelines will also lay down the method of management and utilization of payment security mechanism funds provisioned under the scheme.