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MNRE Restricts Project Types Under PM Surya Ghar Program’s RESCO and CAPEX Modes

The Ministry of New and Renewable Energy (MNRE) has revised guidelines for the PM Surya Ghar: Muft Bijli Yojana, restricting project types under its implementation models. Under the utility-led aggregator (ULA) and renewable service company (RESCO) modes, only rooftop solar projects are now permitted. Ground-mounted, community solar, or off-site projects can be included only with explicit MNRE approval.

For the capital expenditure (CAPEX) mode, eligible projects are limited to ground-mounted and elevated solar installations, removing earlier flexibility that allowed all installation types in both RESCO/ULA and CAPEX models.

This change follows MNRE’s December 2024 guidelines for implementing two key components of the program — central financial assistance (CFA) for eligible households under RESCO/ULA, and a payment security mechanism to ensure timely payments to developers. Under RESCO, a third-party developer installs and maintains rooftop systems for at least five years, while ULA involves utilities or state agencies handling installations.

Launched in February 2024, the PM Surya Ghar program targets rooftop solar adoption in 10 million households by 2026-27. As of January 27, 2025, 846,000 households had installed systems. A utility-led scheme for households without suitable rooftops is expected to be announced soon.