Govt weighs industry proposals for next phase of rooftop solar scheme

The Ministry of New and Renewable Energy is consulting industry stakeholders on the next phase of the PM Surya Ghar Muft Bijli Yojana, including proposals on battery storage and rural expansion.

The Ministry of New and Renewable Energy (MNRE) has initiated consultations with industry representatives and experts on the next phase of the residential rooftop solar scheme, PM Surya Ghar Muft Bijli Yojana (PMSGMBY). The existing scheme, launched in February 2024, expires in March 2027.

 

The scheme, with a total outlay of Rs 75,021 crore, targets coverage of 1 crore households by FY27. Total installations currently stand at 50 lakh, with an installed capacity of 14.8 gigawatts (GW). A total subsidy of Rs 28,024 crore has been released to beneficiaries so far.

 

The ministry has received several suggestions from stakeholders, including proposals on integrating battery energy storage systems (BESS) and expanding the scheme to rural areas, but no decision has been taken so far, ministry officials told Business Standard.

 

 

"BESS has the potential to enhance the value proposition of rooftop solar (RTS) by enabling storage of excess daytime generation for use during non-solar hours. At the system level, storage can contribute to improved grid balancing and operational flexibility for distribution companies (DISCOMs) and state load despatch centres (SLDCs)," the officials said.

 

They added that the consultations are at a preliminary stage and no decision has been taken on any specific intervention.

 

"The objective of these discussions is to take a holistic view of the scheme, identify implementation challenges and opportunities, and explore measures that could further strengthen consumer experience and support the long-term growth of the rooftop solar ecosystem," the officials said.

 

Asked whether the scheme would be expanded to village- or community-level integrated rooftop solar systems and what kind of incentives were being planned to increase adoption in these segments, the officials said the existing scheme already provides for the development of one Model Solar Village in each district to demonstrate the benefits of rooftop solar and encourage wider adoption through replication.

 

"During the stakeholder consultations, some suggestions have also been received regarding further expansion of rooftop solar adoption in rural areas. The ministry is deliberating on the various suggestions received as part of a broader review of the scheme," the officials said.

 

Commenting on the subsidy measures being planned, the officials said that, at this stage, no decision had been taken regarding any changes to the existing support framework, including the Central Financial Assistance (CFA), or the introduction of any alternative mechanisms. They added that, as the consultations are ongoing, it would be premature to comment.

 

The officials said the ministry is continuously monitoring the implementation and performance of PMSGMBY, including market trends and consumer response, to support evidence-based policymaking.

 

"The economics of rooftop solar have improved over the years owing to factors such as enhanced efficiencies, a more mature implementation and vendor ecosystem, increased consumer awareness, and easing of regulatory provisions across states," the officials said. They added that the CFA under the scheme has played an important role in accelerating adoption and expanding access to rooftop solar.