MNRE Designates Central Agencies to Accelerate Rooftop Solar Adoption in States

The CEA will help the ministry calculate region-wise benchmark prices and margins


The Ministry of New and Renewable Energy (MNRE) has allotted Central Public Sector Undertakings (CPSU) state-wise responsibility for accelerating the implementation of rooftop solar programs across the country.

The CPSUs designated under the program include POWERGRID, NTPC, THDC, SJVN, Energy Efficiency Services (EESL), Damodar Valley Corporation (DVC), North Eastern Electric Power Corporation (NEEPCO) and NHPC.

The ministry noted the lack of vendor capacity in the rooftop solar segment was the major reason for the slow progress of rooftop solar adoption.

The CPSUs will undertake the implementation of rooftop solar systems in the states assigned to them and install high-quality modules, inverters, and other equipment at a fair price. They will also undertake the implementation of rooftop solar projects for small households in renewable energy service company (RESCO) mode.

The table below provides state-wise CPSU allocation details.

CPSU Allocation for Rooftop Solar

The implementation of the rooftop solar programs by the CPSUs will be in addition to the existing vendor capacity in the private sector. CPSUs can explore the option of setting up a subsidiary or a special-purpose vehicle to implement these projects.

The Central Electricity Authority will help the ministry calculate the benchmark prices and margins to be allowed after considering the actual cost in different regions.

REC Limited, the central implementing agency for the rooftop solar program, will coordinate and monitor the progress made by the CPSUs in their assigned states.

The government is currently reviewing the existing procedures in different states to simplify and standardize them.

Recently, Union Minister for Power and New & Renewable Energy R K Singh told a news channel that households will not be required to pay anything for the rooftop solar system. The designated CPSU will set up the 3 kW solar systems, for which the household will not be required to make any investment. The CPSUs will be availing loans for setting up the systems, which will now carry a subsidy of 60% in place of the earlier 40%.

As a part of the Budget 2024, the government announced that it will provide up to 300 units of free electricity every month to 10 million households through rooftop solarization. The announcement follows the recent Pradhan Mantri Suryodaya Yojana initiative, which aims to reduce the electricity expenditure of poor and middle-class households while enabling India’s self-reliance in the field of energy.


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