MNRE To Fund Innovative Technologies Under PM Surya Ghar

To further support the development of innovative projects under PM Surya Ghar: Muft Bijli Yojna, the Ministry of New and Renewable Energy (MNRE) has issued latest guidelines laying down new norms under the ‘Innovative Projects’ component of the scheme.

The objectives of the Innovative Projects for Rooftop Solar are:

a. To identify and fund new innovations in business models and technical deployments of rooftop solar.

b. To support startups and institutions in conducting collaborative pilots, proof-of-concepts, and scaling up new business models to generate new technologies, rooftop solar products, and associated innovations.

c. To support interventions that can provide new pathways for the deployment of distributed renewable energy for households and companies, and to create technological and management tools for DISCOMs to better manage distributed energy resources within their grids.

d. To support the incorporation of cutting-edge technology in real-life rooftop solar/distributed RE deployments.

MNRE’s recent regulations also allocate a financial outlay of Rs. 500 crore for the development of the innovative projects component. The regulation also cites some illustrative examples of Innovative Projects, including blockchain-based peer-to-peer RTS, digital solutions for RTS, smart building materials, RTS with EVs, grid-responsive RTS with battery storage solutions, DISCOM IT systems for RTS management, etc. These may also include the creation of special financing products along with financing intermediaries. Rooftop solar deployments can expand across segments by enabling new and innovative business models, such as Virtual Net Metering and Group Net Metering models, Behind-the-Meter Storage, RTS with EV, Rent-A-Roof Models, Peer-to-Peer Sale of RTS electricity, etc.

Tenure and Implementation:

The project will have a maximum duration of 18 months. The effective date of implementation will be the issue date of the letter of award. The duration may be extended or shortened as determined by the Selection Committee for Innovative Projects.

Nature of Assistance:

Financial assistance for innovative projects will be capped at 60% of the total project cost or Rs. 30 crore, whichever is lower.

Awards for Innovation/Startups:

In order to encourage innovation in Rooftop Solar, the Mission will award prizes annually. The awards will consist of a citation and a cash prize of Rs. 100 lakh, Rs. 50 lakh, Rs. 30 lakh, and 10 consolation prizes of Rs. 5 lakh each.

Release of Funds:

a. The project proponents of approved projects will receive financial support as per the approval letter issued by MNRE upon submitting necessary documentation.

b. The grant will be released on a milestone basis. To facilitate early procurement of equipment, up to 50% of the total assistance minus institutional overheads will be released initially along with the sanction, depending on the equipment requirement in the project. For projects where equipment costs exceed 50% of the project cost, a higher initial release may be considered by the selection committee.

c. The balance of the assistance minus institutional overheads will be sanctioned annually based on project progress/milestones achieved. The grants released for equipment purchase must be utilized within 6 months from the date of release. Subsequent grants will be released after full utilization of the previous release and submission of required documents.

d. Overhead charges will be restricted to up to 8% of the project cost or Rs. 15 lakh, whichever is less.