Government plans PM Surya Ghar 2.0 with battery storage and shared rooftop solar

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PM Surya Ghar 2.0 under consideration to expand rooftop solar with battery storage Photo credit: The Financial Express
PM Surya Ghar 2.0 under consideration to expand rooftop solar with battery storage Photo credit: The Financial Express

The Government of India is considering the next phase of the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PM Surya Ghar) to expand rooftop solar adoption and improve the scheme’s long-term impact.

As the number of beneficiary households approaches 50 lakh, the government has started discussions on PM Surya Ghar 2.0, with a focus on battery storage, shared rooftop solar, and better consumer support.

The Ministry of New and Renewable Energy (MNRE) recently held a stakeholder consultation, highlighting the scheme’s success in creating demand and establishing residential rooftop solar as a national market. The discussions also identified key challenges, including battery storage, grid integration, discom readiness, consumer access, asset performance, financing, quality assurance, and long-term market sustainability.

Launched on February 13, 2024, with a financial outlay of ₹75,021 crore, the current phase of the scheme aims to install rooftop solar systems in 1 crore households by March 2027. So far, more than 40 lakh rooftop solar installations have been completed, benefiting over 48 lakh households.

During the brainstorming session chaired by MNRE Joint Secretary JVN Subramanyam, ministry officials and industry stakeholders discussed several proposals for the next phase. One proposal focuses on strengthening long-term maintenance and service support, as some homeowners have faced difficulties obtaining repairs or warranty services after installation vendors shut down or exited the business. The revised scheme may include stricter maintenance responsibilities and measures to ensure electricity generation throughout the system’s lifespan.

The government is also considering extending the scheme to apartment residents and households without suitable rooftops through group and virtual net metering, allowing multiple consumers to benefit from a shared solar installation.

Battery Energy Storage Systems (BESS) were another key area of discussion. While batteries can store surplus solar power generated during the day for use after sunset, they were excluded from the current scheme due to their high cost. The ministry will now study whether battery storage should be deployed at the household, neighbourhood transformer, or utility level before deciding the most suitable model.

To improve transparency and reliability, the government may also introduce digital monitoring of rooftop solar systems, improve installation quality, standardize equipment, and simplify financing. Officials said all suggestions will be reviewed before preparing a detailed policy paper for PM Surya Ghar Muft Bijli Yojana 2.0.

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