What happened: new affordability provisions and ongoing deployment under PMSG: MBY
The Ministry of New and Renewable Energy stated that affordability of rooftop solar (RTS) systems for middle-income and economically weaker households is being supported under PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY). The government announced a set of specific provisions: higher central financial assistance for the first capacity block of rooftop solar, concessional collateral-free loans, and inclusion of RESCO and Utility-Led Aggregation (ULA) delivery models.
Key affordability provisions under PMSG: MBY
For households adopting rooftop solar under PMSG: MBY, the government’s stated provisions aim to reduce both upfront cost and borrowing barriers.
Higher central financial assistance for the first two kWp (kilowatt-peak) of rooftop solar capacity.Collateral-free loan from nationalized banks at a concessional interest rate.Concessional interest rate formula: repo-rate plus 50 bps (50 basis points), stated as 5.75% per annum for the present.Loan tenure: 10 years.RESCO and ULA models included: RESCO stands for Renewable Energy Service Company model (service-provider-based deployment). Utility-Led Aggregation (ULA) refers to utility-facilitated aggregation and delivery for rooftop solar adoption.