New Guidelines by Centre for Rooftop Solar Plants 2025

India’s push towards a sustainable energy future has taken a major leap forward with the government’s notification of the new guidelines by Centre for rooftop solar plants under the PM-Surya Ghar Muft Bijli Yojana. This initiative, designed to support solar panel adoption in residential spaces, introduces significant financial and operational reforms to promote solar energy use across urban and rural landscapes.

Understanding the PM-Surya Ghar Muft Bijli Yojana

The PM-Surya Ghar Muft Bijli Yojana was launched in February 2024 with a whopping budget allocation of Rs 75,021 crore. Its ambitious goal is to power one crore households with solar power system installations by March 2027. With over 1.45 crore registrations already in place and 86% of the previous decade’s installations already matched, this scheme is creating a monumental shift in how India approaches renewable energy for homes.

What’s New: Two Alternative Implementation Models

The Union Ministry of New and Renewable Energy has introduced two major implementation models:

RESCO Model: Zero Upfront Costs for Consumers

RESCO (Renewable Energy Service Company) allows third-party entities to install solar panels on rooftops. Homeowners pay only for the electricity they use, without having to invest in installation or maintenance.

Utility-Led Aggregation (ULA) Model

In this model, electricity distribution companies (DISCOMs) or state-designated agencies will install solar panel for home systems on behalf of individual households. This makes solar energy adoption even more streamlined and inclusive.

Payment Security Mechanism: Boosting Investor Confidence

To encourage private investment in the solar power system sector, a Rs 100 crore Payment Security Mechanism (PSM) fund has been introduced. It aims to de-risk third-party investors involved in RESCO-based grid-connected rooftop solar projects.

Central Financial Assistance (CFA): Up to 40% Subsidy

The scheme offers substantial subsidies—up to 40%—on installation costs, making renewable energy more affordable than ever. This helps households reduce electricity bills while also contributing to environmental conservation.

Capex Mode Still Available

The new guidelines supplement, not replace, the existing capex mode available through the national portal (www.pmsuryaghar.gov.in). This ensures flexibility for households that prefer to own their solar power system outright.

State-Wise Adoption: Gujarat Leads the Pack

States like Gujarat, Maharashtra, Uttar Pradesh, and Kerala have shown strong adoption rates. Gujarat tops the list in installations, especially in the 3-5 kW segment which represents 77% of all deployments.

Load Segments in Demand

The scheme saw maximum interest in the 3-5 kW segment, suitable for medium-sized households. Only 14% of installations were in the segment higher than 5 kW.

The Role of the National Portal

The central portal continues to be a key resource for information, application, and tracking of solar panel for home installations. The new models simply provide more options to accelerate uptake.

Impact on India’s Renewable Energy Goals

The new guidelines under PM-Surya Ghar Muft Bijli Yojana are a game-changer for India’s climate commitments. With a sharp focus on solar energy, the initiative is expected to significantly reduce reliance on fossil fuels.

Making Solar Accessible to All

By offering third-party funding models and DISCOM-facilitated setups, the government is making sure that the best solar panel technologies are not just for the elite but accessible to every Indian household.

Benefits of Rooftop Solar for Homeowners

1. Cost Savings: Up to 90% savings on electricity bills

2. Sustainability: Promotes the use of renewable energy

3. Incentives: Access to government subsidies

4. Efficiency: Higher solar panel efficiency ensures better returns over time

Challenges Ahead

Despite strong support, challenges like local approvals, skilled manpower, and timely subsidy disbursements remain. These must be addressed through stronger coordination between the Centre, States, and private players.

How to Apply Under the Scheme

1. Visit the national portal: pmsuryaghar.gov.in

2. Select your DISCOM and register

3. Choose an installer (if using Capex)

4. Apply for CFA/subsidy

5. Track the progress through the portal

Long-Term Vision

By 2027, the scheme aims to not only electrify one crore homes using solar energy, but also create thousands of green jobs and reduce carbon emissions by millions of tonnes.

Why It Matters Now More Than Ever

With increasing electricity demand, rising tariffs, and environmental concerns, the time to switch to solar panel technology is now. These new guidelines simplify the path for millions to join the renewable energy revolution.

Conclusion

The new guidelines by Centre for rooftop solar plants under the PM-Surya Ghar Muft Bijli Yojana represent a visionary step in India’s clean energy mission. By offering RESCO and ULA models, bolstered by financial assistance and policy support, the scheme empowers homeowners to adopt the best solar panel systems with confidence and ease. As more people turn to solar panel for home solutions, India is set to shine brighter—one rooftop at a time.

For more information, insightful blogs and updates on solar power system innovations, visit our platform SolarClue and don’t forget to check our blogs at blog.solarclue.com. Let’s harness the sun, together.

FAQs

1. What is the PM-Surya Ghar Muft Bijli Yojana?
It’s a central government initiative aimed at promoting rooftop solar energy systems in residential households, offering subsidies and easy financing models.

2. What is the RESCO model in rooftop solar?
In the RESCO model, third-party companies invest in and maintain the solar panel system, while homeowners only pay for the electricity they use.

3. Who can apply for the rooftop solar subsidy?
Any Indian household can apply through the national portal, especially those opting for Capex or ULA models.

4. How much subsidy can I get?
You can get up to 40% subsidy on the installation cost of a solar panel for home system.

5. Why should I choose solar energy now?
It’s cost-effective, reduces your carbon footprint, and with the new guidelines, it’s easier and more affordable than ever to transition to renewable energy.

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