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Daily News Wrap-Up: MNRE Clarifies ALMM-II Norms for Government Rooftop Solar Projects


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					</table><p>The Ministry of New and Renewable Energy’s (MNRE) option, <a href="https://www.mercomindia.com/when-does-it-pay-to-give-up-pm-surya-ghar-subsidy">allowing</a> residential consumers to voluntarily forgo subsidies under the PM Surya Ghar Muft Bijli Yojana, could create a distinct market opportunity for larger rooftop solar installations. The “Give It Up” option allows consumers to install rooftop solar systems without claiming Central Financial Assistance.</p>
<p>The winners of the sixth Mercom India Awards 2026 will be <a href="https://www.mercomindia.com/mercom-india-awards-charting-the-future-of-clean-energy-and-innovation" target="_blank" rel="noopener">announced</a> during the Mercom India Renewables Summit 2026, and the awards will be presented by Union Minister for New and Renewable Energy Pralhad Joshi. For over a decade, Mercom India has chronicled India’s transition from conventional energy sources to a cleaner, more sustainable energy future through its market intelligence, research, news coverage, and advisory services.</p>
<p>As India <a href="https://www.mercomindia.com/indias-solar-manufacturing-push-shifts-focus-to-bos-and-bom-components" target="_blank" rel="noopener">expands</a> its solar manufacturing and deployment capabilities, attention is increasingly shifting toward establishing a fully self-reliant domestic supply chain that encompasses the bill of materials and balance-of-system components.</p>
<p>MNRE <a href="https://www.mercomindia.com/mnre-issues-sop-to-address-vendor-violations-under-pm-surya-ghar" target="_blank" rel="noopener">issued</a> a standard operating procedure to address consumer complaints and violations by registered vendors under the PM Surya Ghar: Muft Bijli Yojana. The program is being implemented nationwide through distribution companies, electricity departments, and state-level implementing agencies.</p>
<p>The Uttar Pradesh Electricity Regulatory Commission (UPERC) <a href="https://www.mercomindia.com/uttar-pradesh-regulator-terms-gst-cut-on-solar-equipment-as-change-in-law" target="_blank" rel="noopener">declared</a> the reduction in the Goods and Services Tax rate on procurement of renewable energy devices and parts, from 12% to 5%, as a ‘Change in Law’ event under the power purchase agreements for the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan Component-C2 solar projects.</p>
<p>UPERC <a href="https://www.mercomindia.com/uperc-allows-banking-for-captive-solar-consumers-despite-missed-deadline" target="_blank" rel="noopener">directed</a> the Uttar Pradesh Power Corporation to execute fresh wheeling and banking agreements for 13 captive users by June 30, 2026, without requiring a prior reduction in open access or in the long-term open access quantum.</p>
<p>The Delhi Electricity Regulatory Commission <a href="https://www.mercomindia.com/delhi-regulator-directs-discom-to-tender-195-mwh-battery-storage-project" target="_blank" rel="noopener">approved</a> BSES Rajdhani Power’s petition to issue a tender for a 195 MWh battery energy storage system at the 66/11 kV Harinagar, Sagarpur, Delhi Transco Pappankala 2, Bindapur, and G4 Dwarka grid substations.</p>
<p>For the first time, the government has begun <a href="https://www.mercomindia.com/indias-iip-revamp-reflects-mainstreaming-of-renewable-energy" target="_blank" rel="noopener">tracking</a> electricity generation from renewable sources by including it in the Index of Industrial Production (IIP), a key macroeconomic metric used by policymakers while framing industrial policies. The inclusion of renewable energy as a distinct component in the revised IIP series indicates the mainstreaming of clean energy within India’s economic environment.</p>
<p>Yash Highvoltage, a manufacturer of transformer bushings for the power generation, transmission, and distribution sectors, <a href="https://www.mercomindia.com/yash-highvoltage-to-raise-%E2%82%B91-51-billion-preferential-share-issue" target="_blank" rel="noopener">approved</a> a preferential issue of equity shares and convertible warrants worth approximately ₹1.51 billion (~$16 million). The company’s board approved the issuance of up to 1,262,131 equity shares and 832,177 convertible warrants at an issue price of ₹721 (~$7.62) per security. Each warrant will be convertible into one equity share.</p>
<p>The Solar Energy Corporation of India <a href="https://www.mercomindia.com/seci-floats-bos-tender-for-70-mw-solar-plus-50-mwh-battery-storage-project" target="_blank" rel="noopener">invited</a> bids for the balance-of-system package for a 70 MW interstate transmission system-connected solar power project with a 25 MW/50 MWh battery energy storage system at Ramagiri in the Sri Sathya Sai district, Andhra Pradesh. The last date to submit bids is July 24, 2026. Bids will be opened on the same day.</p>
<p>NTPC Renewable Energy <a href="https://www.mercomindia.com/ntpc-rel-floats-epc-tender-for-600-mw-solar-projects-in-maharashtra" target="_blank" rel="noopener">invited</a> bids for the engineering, procurement, and construction package to develop 600 MW of grid-connected solar power projects in Dhule, Maharashtra. The project will comprise two blocks of 300 MW each. Bidders may quote for either one block or both blocks.</p>
<p>Maharashtra-based rooftop solar engineering, procurement, and construction services provider Roofsol Energy <a href="https://www.mercomindia.com/roofsol-raises-%E2%82%B92-6-billion-from-aseem-infra-to-expand-ci-solar-portfolio" target="_blank" rel="noopener">secured</a> ₹2.6 billion (~$27.55 million) in funding from Aseem Infrastructure Finance to support the development of solar projects in India.</p>
<p>Germany-based solar cell manufacturing equipment supplier RENA Technologies <a href="https://www.mercomindia.com/rena-secures-6-gw-solar-cell-manufacturing-equipment-order-from-emmvee">signed</a> a contract with Emmvee Energy to supply solar cell production equipment with a total manufacturing capacity of 6 GW. The order will support the production of Emmvee’s tunnel-oxide-passivated-contact solar cells.</p>
<p>In 2025, a <a href="https://www.mercomindia.com/solar-market-hits-record-664-gw-globally-in-2025-amid-fears-of-slow-growth" target="_blank" rel="noopener">record</a> 664 GW of new solar capacity was installed globally, taking the total operating capacity worldwide to about 2.9 TW, according to SolarPower Europe’s Global Solar Market Outlook 2026-2030. The report stated that solar generated 2,778 TWh of power and supplied around 9% of global electricity.</p>
<p>The World Trade Organization <a href="https://www.mercomindia.com/wto-dispute-panel-to-review-indias-tariffs-on-solar-cell-module-imports" target="_blank" rel="noopener">agreed</a> to establish a panel to review India’s import tariffs for solar cells and modules, which China says discriminate against its solar products. China said that its concerns over India’s measures remain unresolved despite bilateral consultations.</p>


Daily News Wrap-Up: ‘Give It Up’ Option May Boost Large-Scale Rooftop Solar


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					</table><p>The Ministry of New and Renewable Energy’s (<a href="https://mnre.gov.in/en/" target="_blank" rel="noopener">MNRE</a>) option that allows residential consumers to voluntarily forgo subsidies under the PM Surya Ghar: Muft Bijli Yojana could create a separate market opportunity for larger rooftop solar installations.</p>
<p>The “Give It Up” option <a href="https://www.mercomindia.com/mnre-eases-surya-ghar-rules-for-non-dcr-consumers-to-forgo-central-subsidy?" target="_blank" rel="noopener">allows</a> consumers to install rooftop solar systems without claiming Central Financial Assistance. In such cases, projects are not required to submit domestic content requirement (DCR) certification, allowing consumers and installers to use non-DCR modules. However, the modules will still need to comply with the Approved List of Models and Manufacturers (ALMM) List I.</p>
<p>While this gives consumers greater flexibility in module procurement, the financial case depends largely on system size and the price gap between DCR and non-DCR modules.</p>
<p>According to Mercom India&#8217;s Q1 2026 pricing assessment, Indian non-DCR TOPCon modules averaged ₹15.57 (~$0.165)/W, while Indian TOPCon DCR modules averaged ₹24.94 (~$0.264)/W. The resulting DCR premium was approximately ₹9.37 (~$0.099)/W.</p>
<p>Under the PM Surya Ghar program, the subsidy is capped at ₹78,000 (~$825) for residential systems of 3 kW and above. Since the subsidy is capped for systems up to 3 kW, a crossover point emerges with every additional watt of DCR modules installed.</p>
<p>Based on Q1 2026 pricing, the economic crossover occurs at approximately 8.3 kW, where the cumulative DCR premium reaches ₹78,000 (~$825).</p>
<p>This means that for systems below roughly 8.3 kW, the subsidy route remains financially beneficial. For systems above this size, the additional cost of using DCR modules may nullify the subsidy benefit.</p>
<p><a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-96955 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy.png" alt="Surya Ghar Subsidy" width="812" height="435" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy.png 812w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy-300x161.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy-768x411.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy-650x348.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy-624x334.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2026/06/Surya-Ghar-Subsidy-600x321.png 600w" sizes="auto, (max-width: 812px) 100vw, 812px" /></a></p>
<p><strong>Subsidy Attractive for Smaller Systems</strong></p>
<p>For a 3 kW residential rooftop solar system, the additional DCR module cost is estimated at about ₹28,100 (~$298). Since the subsidy available is ₹78,000 (~$825), the consumer still benefits by nearly ₹50,000 (~$529) by choosing the subsidy route.</p>
<p>At 5 kW, the DCR premium rises to about ₹46,900 (~$496), but still remains well below the subsidy amount.</p>
<p>Only when system size approaches 8 kW does the financial advantage of the subsidy begin to narrow.</p>
<p>The PM Surya Ghar program is primarily targeted at smaller residential systems, typically between 2 kW and 5 kW. For most consumers in this segment, claiming the subsidy remains the financially superior choice.</p>
<p>However, larger residential consumers, including high-consumption households, villas, and prosumers installing systems above 8 kW, may find the “Give It Up” route economically attractive.</p>
<p>For a 10 kW system, the DCR premium would be approximately ₹93,720 (~$992), exceeding the ₹78,000 (~$825) subsidy by about ₹15,700 (~$166). In such cases, using non-DCR modules without claiming subsidy could reduce the overall project cost, assuming other project costs remain unchanged.</p>
<p><strong>Market Implications</strong></p>
<p>The analysis highlights the impact of India’s continuing price differential between DCR and non-DCR modules. DCR requirements support domestic manufacturing and align with India’s self-reliance objectives. However, they also raise project costs for subsidy-linked rooftop solar installations.</p>
<p>The “Give It Up” option gives consumers an alternative pathway, particularly where project sizes are large enough for the DCR premium to outweigh the subsidy. For EPC companies, the option could offer flexibility in procurement, especially given expected DCR module shortages due to the Approved List of Models and Manufacturers List-II for solar cells taking effect, or higher domestic pricing. It may also allow access to a wider range of module suppliers and technologies.</p>
<p>However, adoption is likely to remain limited among smaller residential consumers, for whom the subsidy makes strong economic sense.</p>
<p>If the current DCR premium persists, consumers with systems above 8–8.5 kW may seriously consider forgoing the PM Surya Ghar subsidy.</p>


When Does It Pay to Give Up PM Surya Ghar Subsidy?


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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/en/" target="_blank" rel="noopener">MNRE</a>) has introduced an additional provision under the ‘Give It UP’ option, allowing consumers to forgo Central Financial Assistance (CFA) without a Domestic Content Requirement (DCR) certificate under the PM Surya Ghar: Muft Bijli Yojana.</p>
<p>While the ‘Give It Up’ option with a DCR certificate was already available on the national portal, the MNRE has now enabled this new feature, enabling greater flexibility for residential consumers opting for rooftop solar systems under the program.</p>
<p>Under the existing framework, consumers who opt out of the subsidy can install rooftop solar systems without complying with DCR norms.</p>
<p>With the latest update, the national portal has been enhanced to allow such consumers to submit applications directly without a DCR certificate, streamlining the process.</p>
<p>However, the MNRE clarified that applications submitted without a DCR certificate cannot revert from the ‘Give It Up’ option once the installation submission is confirmed.</p>
<p>In contrast, applications submitted with a DCR certificate will remain eligible to modify the subsidy option until the redemption stage.</p>
<p>This provision applies only to consumers who choose not to avail CFA benefits and does not alter the broader program guidelines.</p>
<p>Stakeholders must adhere to the regulations and related provisions governing the Approved List of Models and Manufacturers.</p>
<p>Recently, MNRE <a href="https://www.mercomindia.com/mnre-issues-draft-firmware-guidelines-for-rooftop-solar-dataloggers" target="_blank" rel="noopener">issued</a> the draft Firmware Development Guidelines for local device configuration and remote communication application programming interface (API) applicable to dataloggers deployed in rooftop solar systems under PM Surya Ghar.</p>
<p>Last August, MNRE <a href="https://www.mercomindia.com/mnre-limits-ula-resco-projects-under-pm-surya-ghar-to-rooftop-solar" target="_blank" rel="noopener">limited</a> solar projects under the PM Surya Ghar in utility-led aggregator (ULA)/renewable service company (RESCO) mode to rooftop solar power projects. Ground-mounted projects, or other aggregator models such as community solar or off-site installations, can be included only under the ULA/RESCO mode of the program, with the MNRE’s explicit permission.</p>
<p>Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.</p>


MNRE Eases Surya Ghar Rules for Non-DCR Consumers to Forgo Central Subsidy

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