PM Surya Ghar Phase II: India's rooftop solar expansion
Phase I targeted 1 crore households with a subsidy of up to ₹78,000 for a 3 kW system. Phase II, approved by the Cabinet on April 3, 2026, addresses the three problems Phase I revealed: apartment dwellers were excluded, solar power was intermittent, and DISCOMs were reluctant.
What Phase II changes
| Parameter | Phase I | Phase II |
|---|---|---|
| Target households | 1 crore | 3 crore |
| Subsidy for 3 kW | ₹78,000 | ₹94,000 |
| Community solar | Not included | Apartment complexes and rental housing can share a single installation |
| Battery storage | Not included | ₹25,000 per household for battery storage |
| DISCOM incentive | ₹50/kW/month for 5 years | ₹75/kW/month for 7 years |
| Total outlay | ₹75,021 crore | ₹1.62 lakh crore |
Why this matters for UPSC
India's updated NDC commits to 50 percent non-fossil fuel electricity capacity by 2030. Rooftop solar is essential because centralised solar parks face land acquisition challenges and transmission losses. Rooftop solar is decentralised — generation and consumption are co-located.
The battery storage subsidy is particularly significant. Solar power is generated during the day, but peak household consumption is in the evening. Battery storage bridges this gap, making rooftop solar viable as a primary energy source rather than a daytime supplement.
Prelims fact checklist
- Ministry: New and Renewable Energy (MNRE)
- Scheme name: PM Surya Ghar: Muft Bijli Yojana
- Launched: February 2024 (Phase I), April 2026 (Phase II)
- Target: 3 crore households (Phase II)
- Financing: IREDA provides collateral-free loans
Part of: Government Schemes: April to June 2026
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Source: Cabinet Committee on Economic Affairs, April 3, 2026; MNRE.