MNRE Revamps Model Solar Village Guidelines to Power Rural India with Rooftop Solar

The Ministry of New and Renewable Energy (MNRE) has issued revised operational guidelines for the 'Model Solar Village' component under the PM Surya Ghar: Muft Bijli Yojana, a flagship rooftop solar initiative with an overall outlay of INR 75,021 crore.

The updated guidelines aim to solarise at least one village in every district of India by FY 2026-27, transforming them into self-sustaining, 24x7 solar-powered communities that can serve as blueprints for nationwide replication.

A sum of INR 800 crore has been earmarked for the Model Solar Village component, with each selected village eligible for INR 1 crore in Central Financial Assistance (CFA). Disbursement of the CFA per village will be executed in three tranches viz.40 percent upon the awarding of all works listed in the DPR, another 40 percent after their completion and certification by the DLC, and the final 20 percent after a minimum of six months of operation. Each installment must be utilised within six months, with further disbursements contingent on proper utilisation. Any accrued interest from unutilized funds is to be returned to the Consolidated Fund of India.

The scheme targets revenue villages with a population of over 5,000, though in special category states and union territories such as Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, the North Eastern states, Andaman and Nicobar Islands, and Lakshadweep, villages with a population above 2,000 will qualify. In cases where fewer than ten such villages exist in a district, the District Level Committee (DLC) may nominate the ten most populous villages for consideration. In addition, the DLC has been empowered to propose a “Model Solar Panchayat” in instances where a cluster-based approach may be more viable.

The village selection process will be conducted in challenge mode. Over a six-month mobilisation period, eligible villages will compete to deploy the highest amount of renewable energy (RE) capacity within their geographical boundaries. This includes rooftop solar systems, small-scale RE installations under other government schemes like PM-KUSUM, and standalone renewable projects. The village achieving the highest installed capacity, regardless of whether it was achieved with or without government support, will be selected as the Model Solar Village for that district.

Emphasising a community-first approach, the guidelines task panchayats, self-help groups (SHGs), cooperatives, and other local collectives with driving awareness and adoption during the mobilisation phase. The implementation will be carried out by the State Renewable Energy Development Agency or another entity nominated by the respective State or UT government. This designated body, referred to as the Model Solar Village Implementing Agency (MSVIA), will prepare a detailed project report (DPR) outlining how the village will transition to complete or near-complete solar power usage.

The scope of each DPR can include a mix of RE technologies tailored to the local context, ranging from community solar plants and rooftop installations on public buildings to solar-powered water systems, livelihood equipment for SHGs, agri-PV pumps, and solar street lighting. Projects for public infrastructure can be funded fully, while those benefitting local collectives will require a minimum 10 percent contribution from the beneficiaries. Individual households, however, will not be eligible for CFA support under the DPR.

MNRE envisions these model villages not only achieving energy self-sufficiency for residential, agricultural, and public sector needs, but also progressing toward net-zero energy consumption. In cases where full 24x7 energy needs cannot be met, the minimum expectation is for the total renewable generation to match or exceed the village’s annual energy consumption. The ministry has also retained the flexibility to issue future amendments or clarifications to ensure effective on-ground implementation of the program.