Question
What financial mechanism has been established to de-risk
investments in RESCO-based rooftop solar models under the PM-Surya Ghar Muft Bijli Yojana?Solution
A Payment Security Mechanism (PSM) fund of Rs 100 crore has been established under the PM-Surya Ghar Muft Bijli Yojana to de-risk investments specifically in the RESCO-based rooftop solar models. This fund is designed to provide financial security to investors by ensuring that there are sufficient funds to cover the costs associated with electricity production, even in cases where there might be delays or defaults on payments. The PSM can be enhanced with additional grants, subject to approval by the Ministry, providing further assurance to investors and encouraging the uptake of solar energy installations.
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