The government is preparing a major redesign of the PM Surya Ghar: Muft Bijli Yojana, with the next phase likely to link public support more closely to actual electricity generation, battery storage, lifecycle maintenance and service delivery, rather than rooftop solar installation alone.
The proposed framework may also introduce generation guarantees, virtual metering, AI-based quality checks and differentiated financial assistance based on household income, location, consumer category and the services provided by rooftop solar systems to the electricity grid.
The PM Surya Ghar scheme currently provides central financial assistance for residential rooftop solar installations, with subsidies linked largely to installed capacity rather than actual electricity generation or the asset’s performance over its operational life.
A consolidated policy paper is expected within 10-15 days, followed by focused consultations over the subsequent 20 days on batteries, hybrid inverters, equipment interoperability, DISCOM readiness and regulatory changes, FE has learnt. The discussions follow a meeting chaired by a joint secretary in the Ministry of New and Renewable Energy (MNRE).
“The next phase should not be limited to continuation of the existing subsidy structure,” a senior MNRE official said, calling for a combination of regulation, market mechanisms, technology standards and public support to deepen rooftop solar adoption while gradually creating a self-sustaining market.
A split financial-assistance structure is under consideration. One component could support upfront capital expenditure, while another may be linked to electricity generation, operations and maintenance, battery storage or service delivery over the life of the asset.
According to the ofiicials, consumer adoption is likely to remain strong with a payback period of five to six years, but could weaken once it exceeds seven years. Higher-income households may continue adopting rooftop solar with lower levels of support, while lower-income consumers could require stronger or differently structured financial assistance.
Queries sent to ministry of new and renewable energy were remained unanswered till the press time.
States that provide free or heavily subsidised electricity may also consider converting recurring power subsidies into one-time solarisation support, potentially lowering their long-term subsidy burden.
Battery storage is expected to become central to the redesigned scheme as rising rooftop solar capacity increases daytime power exports and grid management challenges. MNRE will evaluate household, transformer, distribution and utility-scale storage models by comparing capital costs, grid benefits, avoided infrastructure expenditure, consumer value and operational control.
“India’s rooftop solar story is entering a new phase. The question is no longer how many panels we install, but how effectively we use the energy they generate. Storage is the missing link that can align consumer savings with grid requirements and make distributed solar more valuable for the entire electricity system,” said Ashish K Sharma, fellow, TERI.
Inputs presented at the meeting proposed two complementary storage pathways — behind-the-meter batteries installed at consumer premises and battery systems deployed downstream in the distribution network. Such systems could absorb excess daytime power exports, provide household backup, reduce reverse power flow, support peak-demand management and improve utilisation of grid assets.
Consumer-side storage could be prioritised for high-solar or network-constrained feeders, while substation-level battery energy storage systems could be deployed where grid conditions warrant them. The proposed model aims to lower electricity bills and improve power backup for consumers while enhancing DISCOMs’ hosting capacity, voltage support and utilisation of network assets.
Benefit-sharing mechanisms are also under consideration to make household batteries more affordable. Under the proposal, a portion of the savings realised by DISCOMs through power purchase optimisation and avoided network expenditure could be shared with participating consumers.
The scheme may also be expanded to cover apartment residents and households without suitable rooftops through virtual and group net metering, balcony solar, facade-mounted systems and building-integrated photovoltaics. Community solar plants of around 100 kW could also be explored for low-income consumers seeking systems of 1-2 kW.
Quality and long-term performance will receive greater attention. The chair said the programme “should shift from an installation-centric model towards an asset-performance model”. Proposals include generation guarantees, mandatory service periods, insurance against equipment failure and generation shortfall, and a digital solar passport recording output, service history and warranty status.
MNRE also plans a common data protocol covering more than 100 inverter and equipment manufacturers. Daily generation data could support monitoring, DISCOM planning, maintenance alerts and warranty enforcement, while AI may verify installations, identify components and detect defects.