The Ministry of New and Renewable Energy (MNRE) has issued an important clarification regarding the PM-Surya Ghar: Muft Bijli Yojana, which provides Central Financial Assistance (CFA) to residential consumers for grid-connected solar power systems. This clarification, released through an office memorandum dated July 28, 2025, serves as a corrigendum to a previous memorandum issued on February 13, 2025.
The main change in the new clarification is related to the type of installation allowed for solar power systems. Previously, the guidelines permitted ground-mounted elevated installations in both the capital expenditure (capex) mode and the RESCO or Utility Led model. This provision was especially beneficial for people in rural areas who have unsuitable rooftops and for apartment dwellers using Virtual Net Metering (VNM).
However, the latest directive changes this rule. According to the new memorandum, ground-mounted elevated installations are now allowed only under the capex mode. Under the RESCO or Utility Led model, solar power systems must now be installed strictly on rooftops. This rule also applies to systems set up under Virtual Net Metering. Rooftop installation is now mandatory for these models.
The Ministry has clearly stated that solar systems installed on non-roof areas will not be permitted under the RESCO or Utility Led model. There is only one exception to this rule. If there is a special situation, the installation on a non-roof area can be considered, but it must be approved directly by the Ministry of New and Renewable Energy. Each such case will be reviewed individually, and approval will be granted only if all technical specifications mentioned in the guidelines are strictly followed.
This clarification cancels and replaces the earlier clauses mentioned in the office memorandum dated December 28, 2024, regarding this matter. The updated rule has been issued with the approval of the competent authority.
The memorandum has been circulated to the Chairpersons and Managing Directors of all DISCOMs, the CMD of REC, and the Director of NIC and PMSG. It will also be uploaded on the Ministry’s official portal for public access.
With this new direction, the Ministry aims to ensure uniformity in implementation, clarity in technical standards, and proper use of government financial assistance. It also places more responsibility on rooftop-based installations under RESCO and VNM arrangements, while maintaining some flexibility under the capex mode. This clarification is expected to help all stakeholders better understand the requirements of the scheme and comply accordingly.
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