The Ministry of New and Renewable Energy (MNRE) has issued amendments 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. The scheme, approved in February 2024 with a total outlay of ₹75,021 crore, targets the installation of rooftop solar systems in one crore households across India.
Under the revised guidelines, State Implementation Agencies (SIAs), primarily distribution utilities (DISCOMs), will continue implementing the scheme in their jurisdictions. States can also nominate alternative agencies, including State Renewable Energy Development Agencies. SIAs are required to establish dedicated administrative capacity at national and regional levels and are eligible to receive service charges for their implementation efforts.
Of the total INR 657 crore service charge allocation, INR 200 crore is earmarked as a base service charge for SIAs, distributed proportionally based on the number of domestic consumers or a minimum of INR 50 lakh per agency, whichever is higher, as per the latest Central Electricity Authority report. Funds will be disbursed in three equal annual installments at the start of each financial year, allowing SIAs to strengthen administrative capacity and deploy dedicated resources at the field level.
For the Model Solar Village component, implementing agencies, referred to as Model Solar Village Implementation Agencies (MSVIA), will receive INR 5 lakh per village. Special category states and union territories including Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, the North Eastern states, Sikkim, Andaman & Nicobar, and Lakshadweep Islands will receive INR 7.5 lakh per village. Half of the service charge is released upon village selection by the District Level Committee (DLC) for preliminary activities, including Detailed Project Report (DPR) preparation, and the remaining half after project completion.
The National Programme Implementation Agency (NPIA) is also allocated a base service charge of 5% of the total outlay, approximately INR 32.85 crore, with an option to receive an additional 5% to support management and infrastructure needs. These funds can be used for IT systems deployment, program management units, project management cells, vendor coordination, third-party evaluation, inspections, monitoring, call centers, net-metering facilitation, and other implementation-linked activities.
SIAs are instructed to allocate a portion of their funds to field units for office infrastructure upgrades, staff expansion, and technological improvements. Both NPIA and SIAs must submit periodic utilization reports, supported by Utilization Certificates (UCs), Audited Statements of Expenditure (ASOE), and other relevant documents. Any unutilized service charges, along with interest, must be refunded according to Government Financial Rules (GFR).
The MNRE emphasized that the amendments will enhance administrative efficiency, ensure proper monitoring of household and village-level solar installations, and support India’s transition toward clean and renewable energy.
A ministry spokesperson said, “By providing structured service charges and clear guidelines for fund utilization, we aim to empower state and field-level agencies to execute the program effectively while accelerating the adoption of rooftop and village-level solar systems across the country.”
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