Seventy-two people died in the tragedy at the west London tower on 14 June 2017.
The government said the lights would be switched on no earlier than 17:00 and turned off by 23:00 each day.
On Sunday and 14 June next year, 72 beams of green light will mark these significant dates in the year.
In its most recent update to the community, external, MHCLG said: “We have heard it is important that there is a visible reminder of the tower’s presence while it is being carefully taken down.”
Responding to the plans, Grenfell Next of Kin, which advocates for the immediate families of the deceased, said: “Eight-and-a-half years on, the MHCLG Grenfell team and Memorial Commission hide behind Instagram virtue-signalling, empty gestures, and PR stunts, while ignoring our voices, demands, and agency.
“We live every day with the manslaughter of our parents, partners, children, and siblings – our kin. We don’t need a light show or performative gestures funded through the public purse and dished out to crony contracts.”
It added: “The department makes decisions in secret and wastes public money. It’s all ‘bread and circuses’ while our needs and voices are systemically ignored.”