MNRE Announces Three New Operational Guidelines Providing Incentives And Component Building

The Ministry of New and Renewable Energy (MNRE) has unveiled several new operational guidelines under the PM-Surya Ghar: Muft Bijli Yojana. These include guidelines on incentives to DISCOMs, to accelerate rooftop solar installation across India. The PM-Surya Ghar: Muft Bijli Yojana has also unveiled a component to accelerate rooftop solar deployment through incentives for Local Bodies. Additionally, the PM-Surya Ghar: Muft Bijli Yojana has launched a Capacity Building program to empower a skilled workforce for India’s rooftop solar revolution.

Incentives to DISCOMs

Program Goal

The goal of this program is to encourage power distribution companies (DISCOMs) to actively promote Rooftop Solar (RTS) adoption.

Incentive Structure

DISCOMs will receive financial rewards based on additional grid-connected rooftop solar capacity installed in their service areas. The incentive program covers the first 18,000 MW of additional capacity added nationwide.

The incentive rate increases with higher achievement levels:

  • 5% of the benchmark cost for capacity exceeding 10% but less than 15% of the existing base.
  • 10% of the benchmark cost for capacity exceeding 15% of the existing base.

Implementation Details

Incentives are calculated based on the annual increase in installed RTS capacity within a DISCOM’s territory. The program operates on a financial year basis (April 1st to March 31st).

Utilizing the Funds

The incentives provided to DISCOMs are untied funds with some mandatory spending requirements:

  • Establishing dedicated RTS teams at various levels within the DISCOM structure.
  • Implementing a reward system for DISCOM officials who contribute significantly to RTS deployment (up to 10% of the incentive amount).
  • Allocating at least 50% of the incentives (up to Rs. 1 crore per division) for activities at the division and subdivisional levels, such as:
    • Administrative expenses
    • Outsourcing services for RTS activities
    • Consumer awareness campaigns
    • Grievance redressal mechanisms

Financial Reporting and Transparency:

DISCOMs must submit a detailed fund utilization plan along with their incentive claims. The funds cannot be used for activities already covered by other central government schemes. Audited reports must be attached to fund utilization reports.

Incentives to Local Bodies

This initiative empowers local governance bodies to play a leading role in promoting and managing solar rooftop projects within their communities.

Key Roles for Local Bodies

Stakeholder Convergence: Local functionaries will act as facilitators, bringing together DISCOMs, banks, consumers, resident associations, contractors, and community members.

Project Promotion and Management: They will actively promote the scheme, develop and manage solar rooftop projects effectively.

Capacity Building: They will organize training programs on technical, financial, and regulatory aspects of solar energy to enhance local expertise.

Objectives

  • Encourage local bodies in both rural and urban areas to actively participate in promoting the scheme.
  • Leverage their existing capacities to reach out to consumers and facilitate collaboration at the ground level.

Financial Incentives

A dedicated budget of Rs. 1,000 crore has been allocated for “Incentives for Local Bodies.”

Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) will receive incentives for each residential rooftop solar installation completed within their jurisdiction under the PM-Surya Ghar Yojana.

Implementation

The National Programme Implementation Agency will oversee the program and ensure proper distribution of incentives.

ULBs and PRIs are expected to undertake various promotional activities, including:

  • Door-to-door mobilization
  • Information campaigns through field units
  • Stakeholder convergence events

Monitoring

A District Level Committee headed by the District Magistrate will monitor the scheme’s progress and the activities undertaken by local bodies.

Implementation of Component Capacity Building

Program Goals

  1. Train over 3 lakh individuals, including at least 1 lakh Solar PV Technicians, through skill development and upskilling initiatives.

2. Enhance the capabilities of various stakeholders involved in the scheme, including:

  • DISCOMs (Power Distribution Companies)
  • Renewable Energy Agencies (REDAs)
  • Financial Institutions
  • Government Officials
  • Field Units

Implementation Framework

The National Programme Implementing Agency (NPIA) will oversee the program at the national level. State Implementation Agencies (SIAs) will manage program execution within their respective states and union territories.

A National Skilling and Capacity Building Action Plan (NSCBAP-PMSG) will be formulated by the NPIA with approval from the Ministry of New and Renewable Energy (MNRE). States will develop their own State Skilling and Capacity Building Action Plans (SSCBAPs) for MNRE approval.

Collaboration with other central and state-level ministries is encouraged:

  • National Rural Livelihoods Mission
  • National Urban Livelihoods Mission
  • Ministry of Cooperation

Training Components

The program will offer various training modules, including:

  • Up-skilling and Re-skilling programs with Recognition of Prior Learning (RPL) for existing workers.
  • Short-term Training (STT) skill courses aligned with the National Skills Qualification Framework (NSQF).
  • Targeted capacity building programs for specific stakeholder groups.
  • Peer Learning Exercises to facilitate knowledge exchange between successful teams.

Focus on Inclusivity

The program prioritizes training opportunities for underserved groups, including women, Scheduled Castes (SCs), and Scheduled Tribes (STs). Training materials will be available in vernacular languages for wider accessibility. Suryamitras, individuals trained under previous MNRE capacity building schemes, will be leveraged for program delivery.

Funding and Implementation

Training will primarily be conducted through institutions empaneled with the Ministry of Skill Development and Entrepreneurship (MSDE). Funding will follow the Common Norms notified by MSDE whenever possible.

Assessment fees will be covered by the program, and participants will receive both physical and digital skill certificates.

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