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MNRE Revises PM-Surya Ghar Service Charge Framework to Strengthen Rooftop Solar Rollout

The Ministry of New and Renewable Energy (MNRE) has introduced amendments to the operational guidelines governing the Service Charge component under the PM-Surya Ghar: Muft Bijli Yojana (PMSG: MBY). The revisions are intended to simplify implementation, enhance administrative efficiency, and address operational bottlenecks in the rooftop solar programme.

As per the updated guidelines, State Implementation Agencies (SIAs)—primarily distribution utilities—will continue to be responsible for executing the scheme within their respective jurisdictions. States, however, have the flexibility to nominate alternative agencies, including State Renewable Energy Development Agencies. SIAs are required to establish dedicated administrative capacity at both national and regional levels and will be eligible to receive service charges for their implementation responsibilities.

Out of the total Rs657 crore allocated towards service charges, Rs200 crore has been designated as the base service charge for SIAs. Allocation to each agency will be determined based on the number of domestic electricity consumers in the respective state, as per the latest Central Electricity Authority data, subject to a minimum allocation of Rs50 lakh. These funds will be released in three equal annual instalments at the beginning of each financial year.

The amendment also provides clarity for scenarios where multiple agencies are involved in implementing PM-Surya Ghar activities within a state. In such cases, the respective State Energy or Power Department may issue orders to redistribute service charges among subordinate agencies from the total allocation available to the SIAs.

For the Model Solar Village component, designated Model Solar Village Implementation Agencies (MSVIAs) will receive Rs5 lakh per village. This amount will be enhanced to Rs7.5 lakh per village for special category states and Union Territories, including Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, the North Eastern states (including Sikkim), and the Andaman & Nicobar and Lakshadweep Islands. Fifty per cent of the service charge will be released upon village selection by the District Level Committee (DLC) for preliminary activities such as DPR preparation, with the remaining amount disbursed after project completion.

The revised guidelines also specify permissible uses of service charge funds. These include the deployment of Programme Management Units (PMUs) and Project Management Cells (PMCs), IT and infrastructure upgrades, manpower deployment, facilitation of net-metering, inspections, monitoring, third-party verification, vendor management, call centre operations, and other implementation-related activities. SIAs are additionally directed to allocate part of the funds to field units for office infrastructure enhancement, staffing, and technological upgrades.

Both the National Programme Implementation Agency (NPIA) and SIAs are required to submit periodic utilisation reports supported by Utilisation Certificates (UCs), Audited Statements of Expenditure (ASoE), and other relevant documentation. Any unutilised service charges, along with accrued interest, must be refunded in accordance with Government Financial Rules (GFR).

MNRE has also stated that it retains the authority to introduce further amendments to the service charge guidelines as deemed necessary.