MNRE Amends PM-Surya Ghar Service Charge Rules to Ease Rooftop Solar Implementation

The Ministry of New and Renewable Energy (MNRE) has issued an amendment to the operational guidelines for the 'Service Charge' component under the PM-Surya Ghar: Muft Bijli Yojana (PMSG: MBY), aiming to streamline implementation and address operational challenges.

Under the revised guidelines, State Implementation Agencies (SIAs), primarily the Distribution Utilities, will continue to implement the scheme in their jurisdictions. However, states can nominate alternative agencies, including State Renewable Energy Development Agencies. SIAs are required to establish dedicated administrative capacity at national and regional levels and will be eligible to receive service charges for their implementation efforts.

Of the total INR 657 crore service charge allocation, INR 200 crore has been earmarked as base service charge for SIAs. The allocation to each agency will be proportional to the number of domestic consumers in its state or a minimum of INR 50 lakh, whichever is higher, based on the latest Central Electricity Authority report. These funds will be disbursed in three equal annual instalments at the start of each financial year.

The amendment also addresses situations where multiple agencies within a state may undertake PM-Surya Ghar activities. In such cases, the state Energy/Power Department can issue orders to reallocate the service charges among subordinate agencies from the total amount accruing to the SIAs.

For the Model Solar Village component, agencies, referred to as Model Solar Village Implementation Agencies (MSVIA), will receive INR 5 lakh per village, increasing to INR 7.5 lakh for special category states and UTs, including Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, North Eastern states (including Sikkim), and A&N & Lakshadweep Islands. Half of the service charge will be released upon village selection by the District Level Committee (DLC) for preliminary activities, including DPR preparation, and the remaining half will be released after project completion.

The guidelines clarify permissible utilization of service charges, which include deployment of Program Management Units (PMUs) and Project Management Cells (PMCs), IT and infrastructure upgrades, manpower, net-metering facilitation, inspections, monitoring, third-party verification, vendor management, call centers, and other activities linked to scheme implementation. SIAs are instructed to allocate a portion of their funds to field units for office infrastructure upgrades, staff expansion, and technological improvements.

NPIA and SIAs must submit periodic utilisation reports supported by Utilisation Certificates (UCs), Audited Statements of Expenditure (ASoE), and other relevant documents. Any unutilised service charges, along with interest, must be refunded as per Government Financial Rules (GFR).

The MNRE retains the authority to make further amendments to the service charge guidelines as required.