PM Surya Ghar 2.0 May Pair Capital Support with Generation-Linked Incentives
The Ministry of New and Renewable Energy (MNRE) is considering a performance-linked revamp of the PM Surya Ghar: Muft Bijli Yojana that could tie financial assistance to electricity generation, battery storage and long-term system performance under PM Surya Ghar 2.0.
July 28, 2026. By Mrinmoy Dey
As part of this exercise, the Ministry of New and Renewable Energy (MNRE) held a brainstorming session on July 23 to chart the future roadmap of PM Surya Ghar 2.0. The meeting was chaired by J.V.N. Subramanyam, Joint Secretary, MNRE, and attended by Ashish Khanna, Director General of the International Solar Alliance (ISA), along with representatives from think tanks, rooftop solar developers, DISCOMs and other stakeholders.
The session focused on identifying measures to strengthen the implementation of the scheme and accelerate rooftop solar adoption across the country. The ministry has stated that a deliberation document capturing the key ideas and policy recommendations discussed during the meeting will be prepared over the next 30 days and will form the basis for future policy consultations.
The government is examining a redesign of the scheme under which financial assistance could be linked to long-term system performance. A two-part support mechanism is being considered, with one component providing upfront capital assistance and another linked to electricity generation, operation and maintenance, battery storage and service delivery over the asset's operational life.
The proposals under discussion also include the introduction of generation guarantees, AI-based quality assessment of rooftop solar installations and differentiated financial assistance based on household income, geographical location, consumer category and the value provided by rooftop solar systems to the electricity grid.
Battery energy storage is expected to play a central role in PM Surya Ghar 2.0 as increasing rooftop solar capacity creates new grid management challenges. The government is evaluating both behind-the-meter residential battery systems and distribution network-level storage to improve grid flexibility, absorb surplus daytime generation, reduce reverse power flow and support peak demand management.
Additionally, the revamped scheme could broaden access to rooftop solar for apartment residents and households without suitable rooftops through virtual and group net metering, balcony solar systems, façade-mounted installations, building-integrated photovoltaics (BIPV) and community solar projects.
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