PM Surya Ghar @ 2: What It Changed — And What Comes Next
Who This Article Is For
This article is written for rooftop solar EPCs, installers, and system integrators working under PM Surya Ghar: Muft Bijli Yojana.
PM Surya Ghar Phase 2 represents a shift in how rooftop solar is designed, deployed, and sustained in India. While the ambition of the scheme remains unchanged, the second phase places greater emphasis on system reliability, technology readiness, and long-term performance beyond installation speed.
PM Surya Ghar: Muft Bijli Yojana, launched in 2024, marked a major shift in India’s rooftop solar journey. By targeting one crore households and offering subsidies that enabled free electricity of up to 300 units per month, the scheme moved rooftop solar from early adoption into the mainstream.
In its first phase, installations accelerated rapidly across urban and semi-urban India. Awareness increased, sales cycles shortened, and residential solar began scaling at a pace not seen before. As volumes grew, new operational realities also emerged. These realities shaped the transition into what the industry now refers to as PM Surya Ghar @ 2.
Rolled out in late 2025, Phase 2 did not change the ambition of the scheme. Instead, it refined how rooftop solar systems are designed, deployed, and sustained over time, while aligning with India’s broader target of achieving 500 GW of non-fossil energy capacity by 2030.
Key Takeaways
PM Surya Ghar Phase 2 focuses on system reliability, not just adoption
Hybrid inverters and storage are now officially eligible
Subsidy structure supports higher scale with increased accountability
Grid interaction and post-commissioning performance matter more at scale
EPCs must design systems for future expansion, not one-time installs
What Changed in Phase 2
The most significant update in Phase 2 was the expansion of technology eligibility under Central Financial Assistance. Hybrid inverters, battery storage systems, and advanced rooftop configurations were included alongside conventional solar PV.
This change recognised that rooftop systems must now manage grid variability, evolving consumption patterns, and future expansion needs, rather than operate as static installations.
The subsidy structure was also refined. Systems up to 2 kW became eligible for subsidies of up to 60 percent, while capacities beyond that continued to receive 40 percent support. To enable this scale, the budget allocation for the scheme was increased to nearly ₹20,000 crore for FY 2025–26.
Monthly installation rates rose sharply, reaching approximately 70,000 systems, with more than ten lakh installations completed by early 2026.
What This Meant for the Rooftop Ecosystem
Phase 2 introduced important shifts for EPCs, installers, and inverter manufacturers.
With hybrid inverters now permitted, distribution companies began allowing higher-capacity inverters even when the initial solar panel capacity was lower. This reduced future retrofit costs for homeowners and allowed systems to be designed with long-term upgrades in mind.
As rooftop density increased, system behaviour after commissioning became more visible. Grid interaction, voltage stability, and service responsiveness started influencing customer trust more than installation timelines alone.
Easier access to financing further accelerated adoption, while also increasing accountability for performance across the rooftop solar ecosystem.
What Comes Next
As PM Surya Ghar matures, growth will be driven less by incentives and more by execution quality.
Rooftop solar is increasingly being treated as long-term energy infrastructure, not just a short-term saving mechanism. This shift places greater emphasis on standardisation, predictable grid behaviour, and serviceability across the system lifecycle.
For EPCs and installers, success will depend on choosing platforms that reduce operational complexity and perform consistently across varied site conditions. For manufacturers, it will require building equipment that supports both present installations and future system evolution.
Where Feston Fits In
At Feston, our focus has always been on building inverter platforms that are grid-ready, scalable, and designed for Indian operating conditions.
As PM Surya Ghar @ 2 expands, systems that deliver dependable performance beyond installation day will play a defining role in sustaining rooftop solar growth at scale.
Frequently Asked Questions
What is PM Surya Ghar @ 2?
PM Surya Ghar @ 2 refers to the second phase of the PM Surya Ghar: Muft Bijli Yojana, introduced in late 2025, with a focus on system reliability, expanded technology eligibility, and higher installation scale.
What technologies are allowed under Phase 2?
Phase 2 allows hybrid inverters, battery storage systems, and advanced rooftop configurations under Central Financial Assistance, in addition to conventional solar PV systems.
How has the subsidy structure changed in Phase 2?
Under Phase 2, rooftop systems up to 2 kW are eligible for subsidies of up to 60 percent, while systems beyond that capacity continue to receive 40 percent support.
Why are hybrid inverters important under PM Surya Ghar @ 2?
Hybrid inverters enable better grid interaction, support future capacity expansion, and allow battery integration, reducing the need for costly retrofits later.
What does PM Surya Ghar @ 2 mean for EPCs and installers?
EPCs must now prioritise system reliability, standardisation, and predictable grid behaviour, as performance after commissioning has become more visible at scale.
If you are planning or scaling rooftop solar projects under PM Surya Ghar, now is the time to focus on long-term reliability alongside speed of installation.
Connect with Feston to explore inverter solutions built for stable grid interaction and dependable performance.
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