Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

MNRE Revises Service Charge Disbursement Framework Under PM Surya Ghar Scheme

The Ministry of New and Renewable Energy (MNRE) has revised the guidelines governing the release of service charges under the PM Surya Ghar program, introducing clearer operational provisions for implementation agencies at the state and village levels. While the financial structure of the scheme remains unchanged, the amendment provides additional clarity on roles, eligibility, and fund disbursement mechanisms.

The PM Surya Ghar initiative targets the installation of rooftop solar systems across 10 million households nationwide by the end of FY 2026-27. The program carries a total financial outlay of Rs 750.21 billion (~$9.04 billion).

From this allocation, Rs 6.57 billion (~$79.2 million), equivalent to 1% of the central financial assistance (CFA) provided to residential beneficiaries, has been set aside as service charges. These funds are intended to support administrative, technical, and monitoring activities at both the central and state levels.

Clearer onboarding requirements for state agencies

Under the revised provisions, distribution companies (DISCOMs) will continue to function as State Implementation Agencies (SIAs) within their respective jurisdictions. The amendment explicitly mandates that all SIAs must be onboarded onto the PM Surya Ghar portal to ensure streamlined coordination and monitoring.

Broader scope for additional implementation agencies

State governments have now been expressly authorized to designate a state renewable energy development agency as an additional SIA. This replaces the earlier, less specific guideline that allowed for the appointment of an alternative implementation agency without naming eligible entities.

Focus on field-level execution

The updated framework emphasizes stronger on-ground implementation by requiring SIAs to deploy dedicated personnel at DISCOM field offices. This marks a shift away from the earlier reference to national or regional field units, reinforcing the importance of local execution capacity.

Service charge distribution structure retained

The base allocation for SIAs continues at Rs 2 billion (~$24.1 million) from the total service charge pool of Rs 6.57 billion (~$79.2 million). Distribution will be proportionate to the number of domestic electricity consumers in each state or union territory, based on data from the latest Central Electricity Authority General Report on the Power Sector. Each SIA is guaranteed a minimum allocation of Rs 5 million (~$60,200).

The revised wording specifies that SIAs are “eligible to receive” service charges, rather than “liable to receive,” reinforcing that fund release is conditional upon compliance with program guidelines.

Additionally, MNRE has clarified that the domestic consumer count should be calculated at the state or union territory level to avoid interpretational inconsistencies. Disbursement will continue to occur in three equal annual installments, released at the start of each financial year.

Stricter norms for fund reallocation

When multiple agencies are involved in implementing PM Surya Ghar activities within a state or UT, the respective Energy or Power Department retains the authority to issue service charge reallocation orders. However, such reallocations must now align with modalities prescribed by the Mission Director, introducing additional oversight.

Phased payments introduced for model solar villages

For model solar villages, the eligibility of implementation agencies remains unchanged, with responsibilities typically assigned to state renewable energy development agencies or other state-nominated bodies.

The service charge continues at Rs 500,000 (~$6,020) per village for general states and Rs 750,000 (~$9,040) for special category states and union territories, including Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, Northeastern states (including Sikkim), and island territories such as Andaman and Nicobar Islands and Lakshadweep.

A key change under the amendment is the introduction of phased fund release. Half of the service charge will now be disbursed after the district-level committee selects a village and preliminary activities—such as preparation of the detailed project report—are initiated. The remaining 50% will be released upon project completion alongside the final CFA installment.

Earlier in October, MNRE had announced the imposition of a 1% service charge on the CFA component for rooftop solar installations under the PM Surya Ghar program to ensure adequate financial support for implementing agencies.