City Accelerator Programme

Context:

Launched by the Ministry of New and Renewable Energy (MNRE), the City Accelerator Programme aims to promote rapid adoption of rooftop solar in urban India. It operates under the broader umbrella of the PM Surya Ghar Muft Bijli Yojana (PMSGMBY).

Objective:

To boost rooftop solar adoption in cities through structured city-level planning and implementation.

Key Features:

• Led by: MNRE
• Target Audience: Urban Local Bodies (ULBs) and DISCOMs
• Support Provided:
  • Technical assistance
  • Policy design guidance
  • Capacity-building for officials
  • Public awareness campaigns
  • Economic modelling to assess benefits and feasibility

PM Surya Ghar Muft Bijli Yojana (PMSGMBY)

Overview:

• Launched: 2024
• Scheme Type: Central Sector Scheme
• Tenure: FY 2023–24 to 2026–27
• Nodal Ministry: Ministry of New and Renewable Energy (MNRE)
• Claim to Fame: Recognized as the world’s largest domestic rooftop solar (RTS) programme

Objective:

To install rooftop solar systems in 1 crore residential households by 2026–27 and promote clean, affordable energy access.

Eligibility Criteria:

To avail the benefits, households must:

• Be Indian citizens
• Own a house with a suitable rooftop
• Hold a valid electricity connection
• Not have availed any prior rooftop solar subsidy

Benefits:

• Free Electricity: Up to 300 units per month
• Bill Savings: Reduced electricity costs
• Income Generation: Surplus power can be sold to DISCOMs through net metering
• Green Impact: Promotes clean energy, reduces carbon emissions
• Job Creation: Expected to generate 17 lakh jobs in solar manufacturing and services
• Energy Capacity: Adds 30 GW capacity, generating 1,000 billion units (BU) over 25 years

Implementation Mechanism:

• National Level: Overseen by the National Programme Implementation Agency
• State Level: Managed by DISCOMs or State Power/Energy Departments (as State Implementation Agencies)

DISCOMs are responsible for:

• Providing net meters
• Conducting site inspections
• Registering certified vendors
• Integrating solar setups with government buildings

Central Financial Assistance (CFA):

• Subsidy Rates:
  • 60% for systems up to 2 kW
  • 40% for 2–3 kW (maximum cap: 3 kW)
• Loan Support:
  • Collateral-free loans up to ₹2 lakh
  • Interest rate approx. 7% for 3 kW systems

Implementation Models:

1. Utility-Led Aggregation (ULA):
   DISCOMs/state agencies float aggregated tenders for multiple household installations.
2. RESCO (Renewable Energy Service Company):
   A third-party company installs and owns the solar system. Households pay only for the electricity they use.

Additional Components:

• Model Solar Villages: One village per district to showcase rural solar potential
• ULB & PRI Incentives: Performance-based incentives for urban and rural local bodies
• RESCO Support: Payment security mechanism to reduce financial risk for RESCOs
• Innovation Fund: Supports unique and scalable solar projects
• Public Awareness Campaign: A nationwide campaign to increase awareness and drive enrolment