PM Surya Ghar Adds Service Charges Under Rooftop Solar

The Ministry of New and Renewable Energy (MNRE) recently clarified the provision of a ‘Service Charge’ added under the Operational Guidelines for the PM Surya Ghar Muft Bijli Yojna. The MNRE included a service charge equivalent to 1% of the Central Financial Assistance (CFA) component for residential consumers, amounting to Rs. 657 crores.

The MNRE allocated these funds to the National Program Implementation Agency (NPIA) and State Implementing Agencies (SIA), which will provide secretarial, managerial, and implementation support to the government. The latest provision tasks the NPIA with the responsibility of setting up and managing the solar installation scheme and receiving payments to cover their administrative and support costs. They are encouraged to build their capacity to ensure the scheme’s success.

In the recent amendment to the provision under PM Surya Ghar’s guidelines, the government specified that the NPIA would be responsible for setting up administrative systems and ensuring the deployment of resources to implement the scheme. For these efforts, they will receive a service charge. The amendment stated, “The NPIA is expected to establish the requisite administrative capacity within its organization to implement the scheme, along with the deployment of dedicated resources at national and regional field-level units. For this activity, the NPIA is made eligible for a base service charge of 5% of the overall financial outlay of the service charge component (i.e., Rs. 32.85 crores). This charge can be disbursed to the NPIA in three equal annual installments at the beginning of each financial year.”

Additionally, the provision elaborated, “In such cases, the NPIA can raise the request for funds under the service charge component, and such funds will be sanctioned from time to time by the Mission Directorate as per the actual expenditure undertaken by or liable to the NPIA.”

Charges for SIA:

Under the scheme, the SIAs are primarily the distribution utilities in their respective jurisdictions. However, State Governments can nominate a different SIA for the scheme. The SIAs need to establish the requisite administrative capacity within their organizations to implement the scheme, along with the deployment of dedicated resources at the national and regional field levels. To do so, the SIAs will be entitled to receive a service charge for the implementation of the scheme.

Out of the total allocation for the service charge (Rs. 657 crores over the implementation period), Rs. 200 crores will be allocated to the SIAs as a base service charge. Within the SIAs, the respective allocation for the base service charge will be in proportion to their number of domestic consumers or Rs. 50 lakhs (whichever is higher), as per the latest General Report on the Power Sector by the Central Electricity Authority. This will be disbursed to the SIAs in three equal annual installments at the beginning of each financial year.

There may also be cases where multiple agencies within a state (other than the SIA) may undertake PM Surya Ghar-related works for the promotion of rooftop solar under the scheme. In such cases, the state’s Energy/Power Department may issue suitable orders for reallocating service charges within its subordinate agencies from the overall service charge accruing to the state SIAs as per clause (b) above.