As the number of households utilizing rooftop solar panel installations under the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSG:MBY) approaches five million, the government has begun discussions on measures to accelerate implementation and enhance the scheme's efficiency in a second phase.
The Ministry of New and Renewable Energy (MNRE) held consultations with stakeholders on Thursday. It was acknowledged that the program has successfully stimulated demand and established residential rooftop solar installations as a national market. However, several issues were identified: grid integration, availability of discoms, consumer accessibility, asset performance, financing, quality assurance, and long-term market sustainability.
The current phase of PMSG:MBY, launched on February 13, 2024, with a financial outlay of ₹75,021 crore, aims to install solar energy systems on the rooftops of one billion households by March 2027. To date, over 40 million installations have been completed, benefiting more than 48 million households.
During a brainstorming session chaired by MNRE Deputy Secretary JVN Subramanyam, ministry officials and industry participants discussed changes that could shape PM Surya Ghar 2.0. One proposal is ensuring long-term maintenance and service support for consumers. Officials noted that many homeowners cannot obtain repairs or warranty services because the companies that installed the systems have closed or exited the business. Therefore, the next phase may include stricter maintenance obligations and a mechanism guaranteeing electricity generation throughout the system's lifespan.
The scheme may also be extended to apartment residents and households without suitable roofs through group and virtual net metering. This would allow multiple consumers to utilize a shared solar installation instead of individual rooftop systems. Battery Energy Storage Systems (BESS) were also actively discussed. Although batteries can store excess daytime solar energy for use after sunset, they remain expensive. One representative noted that batteries were intentionally excluded from the current scheme as they might increase costs and create an access barrier. However, given the rapid growth of rooftop solar installations and the need for better energy management during sunny and non-sunny hours, the role of BESS requires a new evaluation.
The Ministry plans to study whether to implement energy storage at the household, district transformer, or utility level before selecting the most appropriate model. To enhance transparency, the government may also consider digital monitoring of rooftop solar systems, while emphasizing the need to improve installation quality, standardize equipment, and simplify financing to maintain the accessibility and reliability of rooftop solar energy. Officials stated that all proposed ideas will be considered before preparing a detailed policy document for PM Surya Ghar Muft Bijli Yojana 2.0.
Amid ongoing heat and high humidity, people prefer to stay indoors using air conditioners, fans, and refrigerators, which raises concerns about rising electricity bills. However, millions of people who have connected to the PM Surya Ghar Muft Bijli Yojna scheme and installed solar panels on their home roofs are enjoying coolness without worrying about bills, as this government program provides 300 units of free electricity.
PM Surya Ghar Yojna is an initiative by the central government launched by Prime Minister Narendra Modi in 2024. The program not only provides 300 units of free energy but also offers financial support to citizens for installing solar panels on their home roofs. The government assists by providing subsidies for the costs associated with installing panels of various capacities depending on consumption.
Currently, approximately 27 million homes have been covered by this program. The government's goal is to provide solar energy to 100 million households.
The government sets different subsidy amounts for solar panels of varying capacities. Under this government scheme, one can install a solar panel ranging from 1 kW to 3 kW or more. For the installation of a 3-kilowatt solar panel, the estimated cost can range from 1.5 to 2 million rupees. In this case, the government provides a subsidy of 78,000 rupees, which is transferred directly to the bank account or credited against the loan. This reduces citizens' expenses and allows them to benefit from the free electricity allowance.
Various states also offer additional subsidies under the Solar Mission. For instance, in Uttar Pradesh, the government provides an extra assistance of 30,000 rupees for panels of 3 kW and above, increasing the total subsidy from 78 thousand to 108 thousand rupees. If consumption is between 0 and 150 units, one can install a 1-2 kW solar panel and receive a subsidy ranging from 30,000 to 60,000 rupees. To apply for a loan for solar panel installation, one can contact the toll-free number 15555.
Applying for the PM Surya Ghar Free Bijli Scheme is very simple: it only takes 5 minutes to apply through https://pmsuryaghar.gov.in. After this, solar panels can be installed by an accredited vendor registered with your DISCOM. After installation, an application must be submitted for a net meter with installation details. After the meter installation and verification by the DISCOM, a commissioning certificate will be issued. Upon receiving this certificate, the applicant provides bank account details and a cancelled cheque through the portal to receive the subsidy.
