Enabling provision for RTS installation without DCR Certificate under the “Give It Up” subsidy option for residential consumers on the National Portal for PM Surya Ghar: Muft Bijli Yojana -reg. – EQ

Summary:

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#### Context & Background
– The Government of India is implementing the PM Surya Ghar: Muft Bijli Yojana to achieve 1 crore rooftop solar (RTS) installations in the residential sector.
– Over 27 lakh installations have already been completed under the scheme.

#### Key Regulatory Reference
– As per **para 5(p)** of the Operational Guidelines dated June 7, 2024, consumers have the option to **forgo the Central Financial Assistance (CFA)** (i.e., “Give It Up”) to allow wider scheme penetration.
– Consumers opting out of CFA are permitted to install RTS **without** using domestically manufactured cells/modules (i.e., exempt from Domestic Content Requirement – DCR).

#### New Provision Introduced
– **Previously:** The National Portal only allowed “Give It Up” applications with a DCR certificate.
– **Now:** A new feature enables submission of “Give It Up” applications **without a DCR certificate**.

#### Operational Rules
| Scenario | Flexibility |
|———-|————–|
| Application submitted **without DCR certificate** under “Give It Up” | **Cannot** change the “Give It Up” option after confirmation of installation submission. |
| Application submitted **with DCR certificate** | Retains flexibility to modify the “Give It Up” option **up to the redemption stage**. |

#### Scope & Compliance
– Applicable **only** to consumers who explicitly opt out of CFA benefits.
– Stakeholders must also adhere to:
– **ALMM (Approved List of Models and Manufacturers)** guidelines
– **OM No. 283/59/2024-GRID SOLAR dated December 9, 2024** and subsequent amendments

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### Business Points & Implications

| Business Aspect | Implication |
|—————-|————–|
| **Market Access for Non-DCR Modules** | Vendors can now supply rooftop solar systems using imported or non-DCR modules to residential consumers who choose the “Give It Up” option, expanding their addressable market. |
| **Consumer Choice & Adoption** | Consumers wanting to forgo subsidy but prefer non-DCR modules (e.g., potentially lower-cost or higher-efficiency imported panels) can now do so seamlessly, likely boosting adoption. |
| **Vendor Process Discipline** | For “Give It Up” applications without DCR, vendors must ensure finality at installation submission stage since no later modification is allowed. This reduces post-installation administrative rework but requires careful upfront consumer consent. |
| **DCR Certificate Holders** | Vendors using DCR modules retain flexibility to change subsidy preference until redemption, offering a competitive advantage for those sourcing domestically. |
| **Compliance Burden** | Even without DCR, vendors must still comply with ALMM guidelines and the December 2024 OM. Non-compliance could lead to disqualification or penalties. |
| **State Discoms & SNAs** | Must update their portal workflows and vendor training to reflect the new feature without DCR certification, ensuring smooth application processing. |
| **Risk of Misuse** | The provision is strictly for consumers opting out of CFA. Any attempt to avail CFA without DCR remains prohibited. Robust audit mechanisms may be expected. |
| **Strategic Positioning** | Vendors can offer two clear product lines: (1) DCR-based with subsidy flexibility, (2) Non-DCR-based with “Give It Up” fixed choice. This enables differentiated pricing and customer segmentation. |

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