The ministry of new and renewable energy has issued draft norms for central financial assistance and payment security mechanism under the renewable energy services company (RESCO) model and utility-led demand aggregation model of the new rooftop solar scheme.
Under the RESCO model a renewable energy company will procure, install and maintain a rooftop solar system for a consumer for at least five years. In this system, the consumer does not have to make upfront payment to the installer. The upfront finance is facilitated by the renewable energy company.
The PM Surya Ghar Muft Bijli Yojana has an outlay of ₹75,021 crore and is to be implemented till FY27.
The scheme had earlier issued guidelines for release of funds to residential consumers for installations undertaken through registered vendors. They did not include RESCO model and utility-led or state-led aggregation models for rooftop solar installations.
Under the proposed draft norms, the consumer will only pay for the electricity generated through tariff to the RESCO operator. Once the operator’s investment has been repaid, the system is owned by the consumer and the tariff is saved, making the electricity generated almost free.
The plant ownership may be transferred to the consumer after the project period of at least five years. Alternatively, the RESCO operator may enter into an arrangement with the distribution company for sale of generated power to the grid under a power purchase agreement to recover its investment.
Under the utility-led asset model, a state discom owns the rooftop solar systems for the project period of at least five years, after which the ownership would be transferred to the household.
