Government Unveils Operational Guidelines and Incentives for DISCOMs Under PM Surya Ghar: Muft Bijli Yojana

Distribution Companies (DISCOMs) play a pivotal role by connecting power producers to households. Thus, to boost the role of DISCOM, the government has unveiled Operational Guidelines and Incentives for DISCOMs. Under PM Surya Ghar: Muft Bijli Yojana. The scheme was launched on February 29, 2024, with a substantial budget of INR 75,021 crore.

This ambitious initiative aims to install solar panels in one crore households by the fiscal year 2026-27. Managed by the National Programme Implementation Agency (NPIA), the programme relies heavily on state-level Distribution Utilities (DISCOMs) or Power/Energy Departments as State Implementation Agencies (SIAs) for operational tasks.

Central to the scheme’s success, DISCOMs are responsible for ensuring the availability of net meters, overseeing inspections and commissioning of solar installations, and managing vendor relations. They will also work with various departments to install solar panels on government buildings and foster rooftop solar adoption in the commercial and industrial sectors.

The PM Surya Ghar: Muft Bijli Yojana, launched on February 29, 2024, is poised to transform rooftop solar adoption in India with a massive budget of INR 75,021 crore. The initiative aims to equip one crore households with solar panels by the fiscal year 2026-27. Managed by the National Programme Implementation Agency (NPIA), the programme relies on state-level Distribution Utilities (DISCOMs) or Power/Energy Departments as State Implementation Agencies (SIAs) to handle operational tasks.

DISCOMs are central to the scheme's success, tasked with ensuring the availability of net meters, overseeing inspections and commissioning of solar setups, and managing vendor relations. They will also collaborate with various departments to install solar panels on government buildings and promote rooftop solar adoption in commercial and industrial sectors.

A key feature of the scheme is its incentive structure, designed to motivate DISCOMs. Incentives will support Information, Education, and Communication (IEC) efforts, regulatory framework development, and the achievement of implementation milestones. DISCOMs must set up dedicated rooftop solar teams, integrate their ERP systems with the national portal, provide efficient consumer services, and maintain online databases of commissioned capacities. Funding will also be allocated for consumer awareness campaigns and staff training.

The scheme introduces a distinctive reward system for DISCOM officials. At least 10 percent of the incentives received (up to INR 1 crore) must be used to reward field-level staff who significantly contribute to the rooftop solar projects. A quarterly ranking system will highlight top-performing subdivisions and officials, with cash awards to encourage continued excellence.

For transparency, DISCOMs must submit detailed plans and reports on fund usage, including receipts and expense records. Failure to comply could result in incentive claims being rejected, and any unutilized funds cannot be recorded on the DISCOMs' balance sheets until all conditions are met.