Budget 2026 may boost PM Surya Ghar, transmission spend as rooftop solar push intensifies

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• Union Budget to boost PM Surya Ghar and transmission network expansion
• Target set for 50–55 lakh rooftop solar installations by 2026
• Grid bottlenecks prompt focus on transmission readiness and energy storage

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The Union Budget is likely to provide a fiscal boost to PM Surya Ghar: Muft Bijli Yojana and the expansion of transmission networks, as the government steps up efforts to accelerate rooftop solar adoption while addressing grid bottlenecks that risk slowing renewable energy growth, government officials told Moneycontrol.

Union renewable energy minister Pralhad Joshi told Moneycontrol in an interview last month that the government is targeting 50–55 lakh rooftop solar installations in calendar year 2026, underscoring the need for sustained fiscal support to scale up the scheme.

“As far as the FY27 Union Budget is concerned, there is no constraint at all. Whatever support the Ministry of New and Renewable Energy needs is being given top priority by the finance ministry because this is the Prime Minister’s vision. Broadly, I can say that PM Surya Ghar, strengthening evacuation for renewable power, the National Green Hydrogen Mission, an upcoming small hydro policy and will be among the top priorities,” the Union minister said.

Rooftop solar has emerged as a key pillar of the government’s energy transition strategy, offering direct bill savings to households while helping distribution companies manage peak demand. In Union Budget 2025-26, the Centre had allocated Rs 20,000 crore for PM Surya Ghar.

PM Surya Ghar stocktake: progress and rollout targets

Central government data showed that while PM Surya Ghar has scaled up steadily, execution will need to accelerate to meet upcoming milestones.

The scheme has set a target of covering 40 lakh households by March 2026, with the broader objective of reaching one crore households by 2027, officials said.

As of December 9, 2025, around 19.45 lakh rooftop solar systems had been installed under the scheme, benefiting over 24.35 lakh households, according to government data seen by Moneycontrol.

More than 7.7 lakh consumers recorded zero electricity bills in at least one billing cycle, reflecting the impact of rooftop solar on household electricity costs. The Centre has so far disbursed about Rs 13,926 crore as central financial assistance, while over 8.3 lakh loan applications have been sanctioned to support installations, government data showed.

Transmission push gains urgency as RE additions outpace grid expansion

Transmission infrastructure is likely to be another key Budget focus in the power sector, with government data showing a widening gap between renewable capacity additions and evacuation readiness.

According to Central Electricity Authority (CEA) planning estimates, India needs to add over 50,000 circuit kilometres of inter-state transmission lines and large substation capacity by 2030 to integrate renewable energy, with green energy corridor projects alone involving investments of more than Rs 2 lakh crore. However, execution challenges and right-of-way issues have slowed progress in several states.

“Grid congestion and evacuation constraints have now become a binding factor in renewable expansion, prompting the government to recalibrate its approach. Renewable energy tendering will increasingly be aligned with transmission readiness and energy storage to avoid project delays, power curtailment and stress on developers and distribution companies,” an official from the Ministry of Power said.

This also explains the Centre’s recent decision to slow down the issuance of fresh renewable energy tenders, as reported earlier by Moneycontrol, until transmission capacity and grid stability improve.