Daily News Wrap-Up: Vendor Registration Guidelines for PM Surya Ghar Program

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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has announced new guidelines for vendor registration under the recently approved PM Surya Ghar: Muft Bijli Yojana rooftop solar program.</p>
<p>The <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">program</a>, with an outlay of ₹750 billion (~$9.04 billion), aims to increase residential rooftop solar capacity and empower households to generate their own electricity until the financial year 2026-27.</p>
<p>As per the guidelines, vendors must register on the National Portal to be eligible to install rooftop solar projects under the program. The vendors already registered under the previous Grid-Connected Rooftop System (GCRT) Phase II program will automatically be considered registered for the new PM Surya Ghar program.</p>
<p>For new vendor registrations, <a href="https://recindia.nic.in/" target="_blank" rel="noopener">REC Limited</a> has been appointed as the national registering authority. Vendors must submit a performance bank guarantee (PBG) of ₹2.5 million (~$30,000) to register, which will be valid for at least five years.</p>
<p>The registration will allow them to install rooftop solar systems in any district across the country, but they can specify the states and districts where they intend to operate so that they can be displayed in the consumer search list accordingly.</p>
<p>At the state level, the registration process outlined under the previous GCRT Phase II program will continue. Vendors need to apply along with a ₹250,000 (~$3,000) bank guarantee to the respective distribution company or the designated state agency. The state authorities have been given the flexibility to collect a single PBG of ₹250,000 (~$3,000) from vendors for the entire state.</p>
<p>The vendor registrations will be valid for five years and can be renewed for another five years by extending the bank guarantee without any additional charges.</p>
<p>The program was <a href="https://www.mercomindia.com/modi-announces-new-rooftop-solar-on-10-million-homes" target="_blank" rel="noopener">announced</a> in January when the Prime Minister said the aim is to reduce the electricity expenditure of poor and middle-class households while enabling India’s self-reliance in the field of energy.</p>
<p>Recently, the MNRE <a href="https://www.mercomindia.com/mnre-seeks-ghar-rooftop-solar-program" target="_blank" rel="noopener">invited</a> comments and suggestions on the draft guidelines for implementing the PM-Surya Ghar: Muft Bijli Yojana in the residential rooftop solar segment.</p>



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					</table><p>Chandigarh Renewable Energy and Science &amp; Technology Promotion Society (<a href="https://solar.chd.gov.in/" target="_blank" rel="noopener">CREST</a>) has invited bids to set up 50 MW grid-connected rooftop solar power projects on various residential houses in the Union Territory under the renewable energy service company (RESCO) model.</p>
<p>The projects must be installed on a build-operate-transfer basis and within five months of receiving the work order.</p>
<p>The last date to submit the bids is March 13, 2024. Bids will be opened the following day.</p>
<p>The bidders must submit an earnest money deposit of ₹2.5 million (~$30,165). Micro Small and Medium Enterprises (MSME) are exempted from EMD; however, they have to sign a bid security declaration accepting a blacklisting of two years if they withdraw their bids during the validity period.</p>
<p>The project capacities can vary from 5 kWp to 10 kWp for each service connection.</p>
<p>The selected bidders must pay a performance guarantee of ₹1,000 (~$12.07) per kWp of the allotted capacity.</p>
<p>The bidder’s average annual turnover must be at least ₹45 million (~$542,994) in the last three financial years ending March 31, 2023.</p>
<p>The bidders must have installed and commissioned a ground-mounted, rooftop, or floating solar project with a cumulative capacity of 500 kWp or above in India through any government or state agencies.</p>
<p>Solar cell or module manufacturers with an annual manufacturing capacity of 25 MWp can also participate in this tender.</p>
<p>The bidders should have a service center in or around Chandigarh within a radius of 50 km with qualified staff or should commit to opening a service center within one month of receiving the work order.</p>
<p>The projects will be allocated at the L1 rates only, and all shortlisted bidders will have to match the L-1 bid.</p>
<p>The rooftop solar projects installed under the tender will be eligible for central financial assistance (CFA) under the PM Surya Ghar: Muft Bijli Yojana, released to the RESCO company. The CFA will be released only to vendors using solar modules listed in the Approved List of Models and Manufacturers and are manufactured using domestically produced solar cells.</p>
<p>The selected vendors can use imported solar modules for the projects but will not be eligible for the CFA.</p>
<p>The rooftop solar consumers will be charged an Average Pooled Cost of Power Purchase of ₹3.29 (~$0.0397)/kWh for the build-own-transfer period agreed upon by the vendors. Out of this ₹0.07 (~$0.0008)/kWh will be kept by Discom/Chandigarh Electricity Department as facilitation charges, and the balance amount of ₹3.22 (~$0.0389)/kWh will be transferred to the RESCO Company on a monthly/bi-monthly basis.</p>
<p>Recently, Enerture Technologies, Independent Business Machines, Success Impex, and Sunlive Solar <a href="https://www.mercomindia.com/four-companies-win-tender-rooftop-solar-chandigarh" target="_blank" rel="noopener">won</a> CREST’s tender to build and operate grid-connected rooftop solar projects on government-owned residential buildings.</p>
<p>The Union Cabinet <a href="https://www.mercomindia.com/cabinet-approves-new-rooftop-solar-subsidy-program" target="_blank" rel="noopener">approved</a> the Pradhan Mantri-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems on 10 million households, with a total outlay of ₹750.21 billion (~$9.05 billion) until the financial year 2025-26.</p>
<p>Subscribe to Mercom’s <a href="https://www.mercomindia.com/product/india-solar-tender-tracker" target="_blank" rel="noopener">India Solar Tender Tracker</a> for timely updates on all solar tenders issued by various agencies in India.</p>


Chandigarh Invites Bids for 50 MW Rooftop Solar Projects


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					</table><p><a href="https://www.mercomindia.com/cabinet-approves-new-rooftop-solar-subsidy-program" target="_blank" rel="noopener"><strong>The Union Cabinet has approved the Pradhan Mantri-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems on 10 million households</strong></a>, with a total outlay of ₹750.21 billion (~$9.05 billion) until the financial year (FY) 2025-26. Consumers must apply for subsidy through the <a href="https://pmsuryaghar.gov.in/" target="_blank" rel="noopener">National Portal</a> and select a vendor to install the rooftop solar system. The portal will provide consumers with information on system sizes, benefits calculators, vendor ratings, etc., to help with the decision-making process.</p>
<p><a href="https://cms.mercomindia.com/cabinet-approves-new-rooftop-solar-subsidy-program/" target="_blank" rel="noopener"><strong>The Chhattisgarh State Renewable Energy Development Agency has issued a tender to establish standardized rates to set up off-grid solar</strong></a> photovoltaic water pumping systems with capacities of 02, 03, and 05 HP across Chattisgarh. The initiative falls under Component B of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program. The last date for the submission of bids is March 28, 2024. Bids will be opened on April 3.</p>
<p><a href="https://www.mercomindia.com/jindal-commissions-solar-project-at-odisha-steel-mill" target="_blank" rel="noopener"><strong>Jindal Steel &amp; Power has commissioned a 15 MW<sub>dc</sub> rooftop solar project at its steel manufacturing plant in Angul, Odisha. The 15 MW<sub>dc</sub> capacity</strong></a> comprises two projects, 12 MW<sub>dc</sub> , and 3 MW<sub>dc</sub> capacities. The project is expected to help power partial operations at the Angul plate mill<strong>.</strong> The rooftop solar project has a cumulative generation capacity of 21 million units per year. The project is expected to reduce the unit’s annual CO2 footprint by 18,000 tons.</p>
<p><a href="https://cms.mercomindia.com/chhattisgarh-issues-water-pumps-under-kusum/" target="_blank" rel="noopener"><strong>China-based polysilicon manufacturer </strong><strong>Daqo New Energy Corporation</strong><strong> reported lower revenue and net income in the fourth quarter (Q4) of 2023</strong></a>, as polysilicon prices continued to decline due to market oversupply. Daqo’s Q4 revenue was $477.1 million, down 45% from $864.3 million last year. Quarterly adjusted net income also fell 82% to $66 million from $363 million in the same period last year. The steep declines were due to lower polysilicon average selling prices (ASP), which dropped to $7.97/kg in Q4 from $32.54/kg in 2022.</p>
<p><a href="https://www.mercomindia.com/stem-first-ever-positive-quarterly-ebitda-q4" target="_blank" rel="noopener"><strong>Smart energy storage company </strong><strong>Stem</strong><strong>’s fourth quarter (Q4) net loss widened by 6.8% to $37.7 million from the net loss of 35.3 million in Q4 2022</strong></a>. The lower gross profit and higher interest expenses drove the increase in net loss. The AI-driven energy storage system provider’s revenue for Q4 2023 surged by 8% year-over-year (YoY) to $167.4 million, primarily due to the higher storage hardware revenue from Front-of-the-Meter partnership agreements and higher solar asset performance revenue.</p>
<p><a href="https://www.mercomindia.com/battery-tech-company-solid-by-586-in-2023" target="_blank" rel="noopener"><strong>Solid Power</strong><strong>, which develops all-solid-state battery technology for electric vehicles, recorded a net loss of $65.55 million during 2023</strong></a>, a 586.3% YoY increase from a net loss of $9.55 million. The increase in net loss was primarily driven by the higher operating expenses in 2023 compared to 2022 due to increased investments in product development and operational scaling.</p>


Daily News Wrap-Up: Cabinet Approves New Rooftop Solar Subsidy Program


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					</table><p>The Union Cabinet has approved the Pradhan Mantri-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems on 10 million households, with a total outlay of ₹750.21 billion (~$9.05 billion) until the financial year (FY) 2025-26.</p>
<p>Prime Minister Narendra Modi had <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">announced</a> the new subsidy program for residential consumers on February 13, 2024.</p>
<p>Under the new program, a subsidy of ₹30,000 (~$361)/kW will be provided for residential rooftop solar systems up to 2 kW for applications submitted after February 13, 2024. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for projects exceeding 3 kW, depending on the average monthly power consumption of the household, the total subsidy will be capped at ₹78,000 (~$939).</p>
<p>Consumers must apply for subsidy through the <a href="https://pmsuryaghar.gov.in" target="_blank" rel="noopener">National Portal</a> and select a vendor to install the rooftop solar system. The portal will provide consumers with information on system sizes, benefits calculators, vendor ratings, etc., to help with the decision-making process.</p>
<p>Under the program, valid for two years – FY 2023-24 and FY 2024-25 &#8212; consumers will get access to collateral-free, low-interest loan options at as low as 7% to install rooftop solar systems of up to 3 kW capacity.</p>
<p>Households are expected to save on electricity costs as well as earn additional income through the sale of surplus power from the rooftop solar systems to the state DISCOMs.</p>
<p>The government will develop a model solar village in every district of the country to promote rooftop solar adoption in rural areas. It will also incentivize urban local bodies and Panchayati Raj institutions to promote rooftop solar in their respective areas.</p>
<p>According to Anurag Thakur, Minister of Information and Broadcasting, only domestically manufactured solar cells and modules will have to be used in these projects.</p>
<p>The program budget will allow for payment security for renewable energy service company-based installations and also fund innovative projects in the rooftop solar segment.</p>
<p>The PM-Surya Ghar program is expected to add up to 30 GW of residential rooftop solar capacity, generate 1,000 BUs of electricity, and reduce 720 million tons of CO2e emissions over a 25-year project lifetime.</p>
<p>The program is expected to create ~1.7 million direct jobs in manufacturing, logistics, supply chain, sales, installation, operation and maintenance, and other services.</p>
<p>The government, however, has yet to clarify the subsidy structure for residential welfare associations and group housing societies adopting rooftop solar.</p>
<p>Recently, the Maharashtra State Electricity Distribution Company <a href="https://www.mercomindia.com/maharashtra-3-million-residential-rooftop-solar-target" target="_blank" rel="noopener">announced</a> plans to install 3 million rooftop solar systems on houses in the state under the new program. The state has set a district/region-wise target and directed all field offices to focus on technical feasibility approvals and meter testing.</p>


Cabinet Approves New Rooftop Solar Subsidy Program with Outlay of ₹750.21 Billion


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					</table><p>Residential rooftop solar applications submitted before February 13, 2024, will not be applicable for central financial assistance (CFA) under the new PM Surya Ghar: Muft Bijli Yojana, the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has said.</p>
<p>Under the new program announced by Prime Minister Narendra Modi recently, a subsidy of ₹30,000 (~$361)/kW will be <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">provided</a> for residential rooftop solar systems up to 2 kW for applications submitted after February 13, 2024. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for projects exceeding 3 kW, depending on the average monthly power consumption of the household, the total subsidy will be capped at ₹78,000 (~$939).</p>
<p>The program, with an outlay of ₹750 billion (~$9.04 billion), aims to install rooftop solar systems in 10 million households in a bid to reduce the electricity expenditure of poor and middle-class households.</p>
<p>The ministry also clarified that all earlier applications would receive CFA under the <a href="https://www.mercomindia.com/mnre-hikes-cfa-rooftop-solar" target="_blank" rel="noopener">notified</a> subsidy structure issued on January 5, 2024.</p>
<p>The older structure states that CFA for systems ranging from 1 kW to 3 kW will be ₹18,000 ($216)/kW for general states and ₹20,000 ($240)/kW for special category states. Systems above 3 kW and up to 10 kW capacities will receive CFA of ₹9,000 (~$108)/ kW in general states and ₹10,000 ($120)/kW in special category states.</p>
<p>Additionally, an individual household with up to a 3 kW system in a general category state is eligible for a subsidy of ₹18,000 ($216)/kW, an increase from the earlier ₹14,588 (~$175)/ kW. However, the ministry removed CFA for systems with over 10 kW capacity for individual households.</p>
<p>Mercom recently <a href="https://www.mercomindia.com/mnre-do-away-cpsus-involvement-rooftop-solar" target="_blank" rel="noopener">reported</a> that Central Public Sector Undertakings (CPSU) <a href="https://www.mercomindia.com/mnre-designates-cpsu-rooftop-solar-adoption-states" target="_blank" rel="noopener">designated</a> as the implementing agencies may no longer be involved in executing the PM Surya Ghar: Muft Bijli Yojana. Minister R K Singh had <a href="https://www.mercomindia.com/residential-rooftop-solar-subsidy-increased-60" target="_blank" rel="noopener">announced</a> that CPSUs will receive a 60% subsidy, up from 40%, for setting up solar systems, with the income from the sale of surplus electricity used for loan repayment.</p>


MNRE Issues Clarification on Residential Rooftop Solar Subsidy


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					</table><p>A new program to install rooftop solar systems on 10 million households across India will be called ‘<a href="https://pmsuryaghar.gov.in/" target="_blank" rel="noopener">PM Surya Ghar: Muft Bijli Yojana</a>’ and will have an outlay of ₹750 billion (~$9.04 billion), Prime Minister Narendra Modi announced in a post on the microblogging site X.</p>
<p>The Prime Minister added in the post that the Union government will ensure there is no cost burden on the people and substantive subsidies with heavily concessional bank loans will be offered. “All stakeholders will be integrated into a National Online Portal, which will further convenience,” he said.</p>
<p>A subsidy of ₹30,000 (~$361)/kW will be provided for residential rooftop solar systems up to 2 kW. Additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for projects exceeding 3 kW, depending on the average monthly power consumption of the household, the total subsidy will be capped at ₹78,000 (~$939).</p>
<p><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-63329" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana.png" alt="Residential rooftop solar subsidy under PM Surya Ghar Yojana" width="771" height="285" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana.png 771w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana-300x111.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana-768x284.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana-650x240.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana-624x231.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/02/Residential-rooftop-solar-subsidy-under-PM-Surya-Ghar-Yojana-600x222.png 600w" sizes="(max-width: 771px) 100vw, 771px" /></p>
<p>According to a source Mercom spoke to, the new program will replace the existing rooftop solar program deployed by the Ministry of New and Renewable Energy and the <a href="https://www.mercomindia.com/mnre-hikes-cfa-rooftop-solar" target="_blank" rel="noopener">current</a> subsidy structure.</p>
<p>The MNRE is expected to provide detailed guidelines for the new program soon.</p>
<p>“To popularise this program at the grassroots, Urban Local Bodies and Panchayats shall be incentivized to promote rooftop solar systems in their jurisdictions,” he added in another post.</p>
<p>The program was <a href="https://www.mercomindia.com/modi-announces-new-rooftop-solar-on-10-million-homes" target="_blank" rel="noopener">announced</a> in January when the Prime Minister said the aim is to reduce the electricity expenditure of poor and middle-class households while enabling India’s self-reliance in the field of energy.</p>
<p>It was one of the major programs <a href="https://www.mercomindia.com/budget-2024-free-electricity-rooftop-solar-vgf-offshore-wind" target="_blank" rel="noopener">unveiled</a> in the interim Budget 2024 presented to Parliament by Finance Minister Nirmala Sitharaman. Every beneficiary household would save up to ₹18,000 (~$216) a year on electricity expenses, she had said.</p>
<p>The Ministry of New and Renewable Energy recently <a href="https://www.mercomindia.com/mnre-designates-cpsu-rooftop-solar-adoption-states" target="_blank" rel="noopener">allotted</a> CPSUs state-wise responsibility for accelerating the implementation of rooftop solar programs across the country.</p>
<p>Designated central public sector undertakings (CPSUs) will install 3 kW solar systems at households without any upfront investment from the residents, Union Minister for Power and New &amp; Renewable Energy R K Singh said earlier this month. These CPSUs will secure loans to establish the systems, now benefiting from a 60% subsidy compared to the previous 40%.</p>
<p>For ten years, participating households will receive up to 300 units of free electricity monthly. Any surplus electricity income will contribute to repaying the CPSU&#8217;s loan, which is expected to be completed within this timeframe. Following the ten years, households will also earn income from surplus electricity generation for the subsequent 15 years or the system&#8217;s lifespan.</p>
<p>The latest rooftop solar initiative aims to energize the government&#8217;s efforts towards residential solarization, which have lagged behind utility-scale solar projects.</p>
<p>According to the <a href="https://www.mercomindia.com/product/rooftop-solar-market-report-q3-2023" target="_blank" rel="noopener">Q3 2023 Mercom India Rooftop Solar Market Report</a>, India added slightly more than 1.3 GW of rooftop solar capacity in the initial nine months of 2023.</p>


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