MNRE Rolls Out Rs 4,950 Crore Incentives for Discoms Under PM Surya Ghar Scheme

The Union Ministry of New & Renewable Energy has announced guidelines for distributing Rs 4,950 crore in incentives to power distribution companies (Discoms) under the PM-Surya Ghar: Muft Bijli Yojana. Union Minister Pralhad Joshi shared this update on Monday, highlighting the criteria for these incentives, which include achieving additional grid-connected rooftop solar capacity beyond the baseline level.

Ministry Guidelines

The guidelines were issued by the Ministry last week on July 18, according to an official statement. The PM-Surya Ghar scheme has a total budget of Rs 75,021 crore and will be implemented until the financial year 2026-27. Discoms will act as state implementation agencies (SIAs) responsible for various tasks, including ensuring the availability of net meters, conducting timely inspections, and commissioning new installations.

Financial Allocation

The statement noted that the total financial allocation for the ‘Incentives to DISCOMs’ component is Rs 4,950 crore, which includes the previous budget under the Grid Connected Roof Top Solar (GCRT) Phase II program.

“The scheme also has the provision of an indicative rewards system to recognize and motivate the field staff of Discoms. Specifically, the incentives are structured to reward Discoms with 5% of the applicable benchmark cost for achieving an additional capacity of 10% to 15% over the installed base and 10% for capacities beyond 15%,” the statement added.

Progressive Mechanism

This progressive incentive mechanism aims to encourage higher participation from Discoms and ensure robust growth in rooftop solar capacity. Minister Joshi emphasized that these guidelines are intended to ensure the effective distribution of incentives to support the installation of rooftop solar panels, contributing to India’s renewable energy goals.