The Ministry of New and Renewable Energy (MNRE) has broadened the scope of incentives available under the PM Surya Ghar: Muft Bijli Yojana, allowing power distribution companies (DISCOMs) to use their remaining incentive funds for battery energy storage systems (BESS), grid strengthening projects, and other rooftop solar support initiatives. The move is expected to accelerate rooftop solar adoption while improving the reliability of electricity distribution networks.
The clarification comes after several implementing agencies sought guidance on how unused incentive funds could be utilized once the mandatory allocations under the scheme had been fulfilled. Under the revised framework, DISCOMs can now invest these remaining funds in deploying BESS, installing rooftop solar systems at their own facilities, enhancing distribution infrastructure, and implementing rooftop solar generation monitoring systems.
According to the ministry, the additional flexibility is intended to help DISCOMs manage the growing integration of rooftop solar into the electricity grid. Investments in battery storage and grid modernization will improve system stability, support better power management, and enable higher penetration of distributed renewable energy while maintaining reliable electricity supply.
The ministry has also clarified that the revised incentive utilization should not overlap with projects already receiving financial support under existing Central or state government programmes, including the Revamped Distribution Sector Scheme (RDSS). This ensures that public funding is used efficiently without duplication while supporting the broader objectives of the PM Surya Ghar initiative.
The latest clarification supplements the operational guidelines issued in July 2024 for the “Incentives to DISCOMs” component of the scheme, while all other provisions remain unchanged. DISCOMs will continue to play a key role as State Implementation Agencies, facilitating rooftop solar installations through approvals, net metering, inspections, commissioning, vendor coordination, and consumer awareness initiatives.
Launched with a total outlay of ₹75,021 crore, the PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar systems in one crore households by FY 2026-27. By allowing incentive funds to be invested in energy storage and grid infrastructure, the government is strengthening the foundation for faster rooftop solar deployment while enhancing grid resilience and supporting India’s clean energy transition.
