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UPNEDA Flags Non-Performing Vendors Under PM Surya Ghar Rooftop Solar Scheme

Vendors are expected to deliver regular installations as part of program participation. The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has issued show-cause notices to empanelled rooftop solar vendors under the PM Surya Ghar: Muft Bijli Yojana, citing inadequate participation by certain firms that have failed to execute even a single installation since onboarding.

In its communication, UPNEDA emphasized that vendors are expected to contribute actively to the program’s rollout, with an indicative benchmark of installing at least one rooftop solar system per day on average.

The agency cautioned that vendors who fail to submit a satisfactory explanation may face deregistration from the program.

No explicit installation benchmark in scheme guidelines

While the PM Surya Ghar framework does not formally specify minimum installation requirements for empanelled vendors, UPNEDA’s action signals a stricter implementation stance aimed at accelerating deployment on the ground.

National installation progress under PM Surya Ghar

As of December 2025, rooftop solar systems have been commissioned in 2,396,497 residential households under the scheme, representing nearly 24% of the national target of 10 million installations by FY 2026–27.

Data from the national portal shows that 5,354,099 applications had been submitted by December 3, 2025, with 1,917,698 rooftop solar systems installed nationwide.

Addressing Parliament, Union Minister of State for New and Renewable Energy Shripad Yesso Naik stated that the program aims to cover 3.5 million households during FY 2025–26.

Shift toward utility-led deployment models

To accelerate adoption, the Ministry of New and Renewable Energy (MNRE) has approved utility-led aggregator (ULA) and renewable service company (RESCO) models under PM Surya Ghar.

Under the RESCO framework, third-party developers finance, install, and operate rooftop solar systems for a minimum period of five years, during which ownership remains with the developer. In the ULA model, utilities or state agencies take the lead in system deployment for residential consumers.

In August 2025, MNRE further streamlined the program by restricting implementation to rooftop solar installations under the ULA/RESCO framework. Ground-mounted systems and alternative aggregator models—such as community solar or off-site projects—may be considered only with explicit approval from MNRE and exclusively under the ULA/RESCO mode.

Rooftop solar’s growing contribution

Driven largely by the PM Surya Ghar initiative, the residential segment accounted for 73% of the 2.1 GW of rooftop solar capacity added during the third quarter of calendar year 2025, according to Mercom India’s Q3 2025 India Rooftop Solar Market Report.

Overall, rooftop solar contributed 24.1% of India’s total solar capacity additions during the quarter.