MNRE Updates Guidelines for Disbursing Incentives Under PM Surya Ghar Yojana: A Boost for Local Bodies and Rooftop Solar Growth
In a move set to accelerate the adoption of rooftop solar across India, the Ministry of New and Renewable Energy (MNRE) has issued an important amendment to the operational guidelines for the PM Surya Ghar: Muft Bijli Yojana, with an emphasis on the local urban and rural bodies’ incentive structure. This update, issued on July 25, 2025, clarifies and streamlines the disbursement process for incentives tied to the installation of grid-connected rooftop solar systems.
This strategic change aims to enhance stakeholder engagement, encourage participation from local authorities, and ultimately support India’s clean energy transition—one rooftop at a time.
What is the PM Surya Ghar Muft Bijli Yojana?
Launched as part of India’s ambitious clean energy mission, the PM Surya Ghar Yojana seeks to install 1 crore rooftop solar systems across the country, especially targeting residential homes. The scheme provides financial assistance, simplified procedures, and now, structured incentives to urban local bodies (ULBs) and gram panchayats (GPs).
By installing rooftop solar systems under this scheme, households can receive free electricity up to 300 units per month, drastically reducing their power bills while contributing to national sustainability goals.
Key Amendments: Incentive Disbursement Guidelines for Local Bodies
Under the revised framework, the MNRE has detailed how financial incentives will be released to ULBs and GPs based on the number of installations completed within their jurisdiction. Here’s a breakdown:
- Eligibility Criteria for Local Bodies
- The incentives will be available to both Urban Local Bodies (ULBs) and Gram Panchayats (GPs), actively promoting rooftop solar installations.
- To qualify, these bodies must facilitate a minimum number of sanctioned and commissioned residential rooftop solar systems under the scheme.
- Revised Incentive Amounts
MNRE has introduced a slab-based incentive structure:
Number of Installations | Incentive Amount per Installation |
Up to 250 installations | ₹450 |
251–500 installations | ₹600 |
501–1000 installations | ₹750 |
More than 1000 | ₹900 |
This structure offers higher rewards for local bodies that drive mass adoption, creating a strong financial incentive to actively support awareness, facilitation, and monitoring of rooftop solar deployment.
- Timeline and Disbursement Process
- The incentive is one-time and non-recurring.
- Funds will be transferred only after physical verification and successful commissioning of the solar systems.
- Local bodies need to submit periodic reports and install verifiable documentation to claim the incentives.
Why This Amendment Matters
This policy update is not just a bureaucratic change—it’s a clear signal of MNRE’s intent to empower grassroots governance in India’s renewable energy mission. Here’s why it’s a game-changer:
✅ Decentralized Implementation
The revised guidelines align with the reality that local bodies are the first point of contact for citizens. By making them active participants, the scheme fosters localized ownership, transparency, and trust among residents.
✅ Boost to Rural and Urban Solar Adoption
From Tier-1 cities to rural villages, the incentive now gives both urban and rural governance bodies a reason to push for faster implementation, especially in areas with low solar penetration.
✅ Stimulates EPC Engagement
With local bodies facilitating leads and awareness, solar EPC contractors and channel partners will benefit from more structured, high-volume demand—making the customer acquisition process more efficient.
How Feston Sev Supports Local Bodies and EPCs
At Feston Sev, we are proud to play a proactive role in supporting India’s solar ambitions. As a trusted distributor of premium solar panels, inverters, and balance-of-system components, we are ready to support:
- Local urban and rural bodies: with educational material, technical training, and material supply partnerships.
- EPC installers and channel partners: with reliable product delivery, engineering guidance, and documentation support required under the PM Surya Ghar Yojana.
Our streamlined logistics, high-quality equipment portfolio, and support ecosystem ensure that you’re not just installing solar—you’re building trust with every rooftop.
Opportunities for EPC Installers & Channel Partners
These new MNRE amendments present tremendous opportunities for EPC players and solar channel partners looking to scale operations in both urban and rural areas:
🔹 More Leads from Local Bodies
As gram panchayats and ULBs begin mass mobilization campaigns, installers can partner directly with them to secure multiple project leads.
🔹 Predictable Funding Environment
With clearly defined incentives and timelines, stakeholders now have greater financial clarity, enabling smoother project planning and execution.
🔹 Aligned Goals with Government Bodies
Installers who align their operations with local governance structures will enjoy faster approvals, more trust, and greater community acceptance.
Challenges That Remain
While the amendment is a strong step forward, a few challenges still need to be addressed:
- Capacity Building: Local bodies may need handholding to understand technical documentation and quality verification procedures.
- Standardization of Process: Uniform verification and reporting methods across states will be crucial to avoid delays in disbursement.
- Training of Vendors: Rooftop system installers must maintain quality to ensure systems qualify under the approved guidelines.
The Road Ahead: Making Rooftop Solar a Grassroots Movement
With these updated guidelines, the MNRE is clearly shifting towards a community-driven model of solar adoption. The PM Surya Ghar Yojana, coupled with financial incentives for local authorities, is poised to make rooftop solar a household norm across India.
From policy to product, all stakeholders—including the government, solar companies, local bodies, and end consumers—are now moving in alignment.
At Feston Sev, we’re committed to being a trusted partner in this transformation—offering not just products but end-to-end support for successful project execution.
Final Thoughts
The revised MNRE guidelines for incentivizing local bodies are not just administrative tweaks—they are a strong signal that India’s clean energy transition is entering the grassroots. Whether you’re an EPC, installer, or a policymaker, now is the time to capitalize on this momentum.
With trusted partners like Feston Sev by your side, you’re better equipped to lead this solar revolution—one rooftop at a time.
Looking to partner with us?
Visit https://festonsev.com or reach out to our team for bulk solar panel and inverter procurement, installation support, and PM Surya Ghar Yojana assistance.
FAQ
Q1: What is the PM Surya Ghar Muft Bijli Yojana?
It’s a government initiative by MNRE that aims to install 1 crore rooftop solar systems across India, offering up to 300 units of free electricity per month to residential households.
Q2: Who is eligible for incentives under the amended guidelines?
Urban Local Bodies (ULBs) and Gram Panchayats (GPs) are eligible for incentives based on the number of rooftop solar installations completed in their jurisdictions.
Q3: How much incentive can local bodies receive?
Incentives range from ₹450 to ₹900 per installation, depending on the total number of commissioned systems under their facilitation.
Q4: Is the incentive one-time or recurring?
The incentive is one-time and non-recurring, released after physical verification of the solar systems.
Q5: How can EPCs benefit from this scheme?
EPC contractors and solar channel partners can collaborate with local bodies to receive more project leads, benefit from faster implementation, and contribute to India’s clean energy mission.