The Ministry of New and Renewable Energy (MNRE) has amended the operational guidelines for the “Innovative Projects” component under the PM Surya Ghar: Muft Bijli Yojana to provide up to 100% financial assistance for select institutions and startups.

MNRE had introduced a ₹5 billion (~$58.14 million) innovative projects component as part of the PM Surya Ghar program. The component focuses on encouraging novel business models and technology solutions for rooftop solar through pilot projects and proof-of-concept deployments.

According to the official memorandum, the MNRE Secretary may now permit full funding up to ₹20 million (~$232,558) for projects submitted by Indian Institutes of Technology (IITs), institutes of eminence notified by the Ministry of Education, and startups with exceptionally innovative proposals.

The 60% or ₹300 million (~$3.49 million) cap remains applicable in all other cases.

The amendment aims to increase participation and encourage high-impact innovation by allowing full cost coverage for projects that show significant technical or conceptual originality.

The change has been introduced in response to feedback from implementing agencies seeking more flexibility in supporting early-stage and research-oriented projects.

In addition to the funding clause, the composition of the selection committee for evaluating proposals under the Innovative Projects component has also been modified.

While the committee will continue to be chaired by the MNRE Secretary, it will now include the Mission Director of PM Surya Ghar: Muft Bijli Yojana, as well as members of the monitoring committee. The updated clause also grants the committee the authority to invite additional official or non-official members to participate in deliberations as needed.

Recently, MNRE launched the Innovative Projects Startup Challenge with a total prize pool of ₹23 million (~$265,650) to encourage innovation in rooftop solar and distributed renewable energy technologies.

In May this year, MNRE, through the National Institute of Solar Energy, issued a call for proposals for innovative project components under PM Surya Ghar: Muft Bijli Yojana.