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MNRE Issues Guidelines for Saturation of Govt Buildings with Rooftop Solar

The Indian government has mandated public sector utilities under the power ministry to equip all buildings under central government administration with solar rooftops by 2025, as part of the revamped PM Suryodaya Yojana (PMSY), also known as PM-Surya Ghar: Muft Bijli Yojana.

July 08, 2024. By News Bureau

The Indian government has mandated public sector utilities under the power ministry to equip all buildings under central government administration with solar rooftops by 2025, as part of the revamped PM Suryodaya Yojana (PMSY), also known as PM-Surya Ghar: Muft Bijli Yojana. Finance Minister Nirmala Sitharaman announced this initiative in her February 29, 2024 Interim Budget speech, allocating INR 75,021 crore for its implementation. 

The recently issued PM Surya Ghar: Muft Bijli Yojana guidelines outline the roles of various stakeholders in achieving solar rooftop saturation across government buildings at both central and state levels. These stakeholders include select Central Public Sector Enterprises (CPSEs) with renewable energy expertise, central ministries, state/UT government departments, autonomous bodies, public sector enterprises, and other units under the administrative control of central ministries and state/UT government departments. The guidelines detail the saturating government buildings with solar rooftops, applicable to central and state/UT government buildings. 

The PM Suryodaya Yojana introduces various implementation models in this guideline for this solar rooftop project. CPSE-owned deployment involves CPSEs investing in and operating solar systems, selling power under long-term PPAs and feeding surplus energy into DISCOM grids. CPSEs act as intermediary aggregators, overseeing projects and reselling power through agreements. They also offer consultancy services and manage Turnkey Projects funded by ministries, ensuring maintenance for at least five years. These models aim to promote solar installations across government buildings, with CPSEs earning 3 percent of project costs for consultancy services. 

The PM Surya Ghar: Muft Bijli Yojana mandates that government buildings install rooftop solar without Central Financial Assistance, relying on administrative ministry plans. MNRE has designated experienced CPSEs like NTPC and SECI as Scheme Implementation Partners (SIPs) to oversee the projects. Ministries have one month to confirm or select alternative SIPs. SIPs will conduct due diligence, and baseline studies, and prepare action plans, coordinating with MNRE. Eligible buildings include all under government control, except those with restrictive contracts. Ministries will appoint contact persons to work with SIPs to assess rooftop capacity and create bid packages to ensure timely implementation. 

The scheme aims to install solar power systems on 1 crore household rooftops, providing free electricity. However, concerns over vendor credibility for household implementations have prompted the government to prioritise central government buildings initially. According to PMSY guidelines, all available rooftop space on these buildings will be utilised for solar installations, with support from experienced central public sector enterprises. 

Formally approved on March 16, 2024, following its launch on February 29, 2024, the project evaluates the feasibility of using rooftop areas across various government domains, including departments, ministries, and lower-level offices. Emphasizing automation and data-driven management, the initiative aims to streamline contract enforcement and monitoring to reduce administrative overheads. Implementation methods such as the RESCO or capex models are encouraged.  

Currently, India boasts a total installed solar power generation capacity of 73 GW, with ground-mounted projects contributing 56.9 GW, grid-connected rooftop solar 11 GW, and off-grid systems 2.75 GW. To achieve its renewable energy targets, the government aims to expand rooftop solar installations, which currently number around 6.5 lakh household systems nationwide.

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