The Ministry of New and Renewable Energy (MNRE) has authorised distribution companies, or DISCOMs, to use unspent incentives under the PM Surya Ghar rooftop solar scheme for investments in battery energy storage system (BESS) and grid upgrades. The measure allows the transfer of remaining beneficiary balances from household solar accounts to support distribution network strengthening and storage deployment. The change aims to improve utilisation of sanctioned incentives and speed the integration of distributed renewable generation.

The abbreviation BESS will be used for battery energy storage system throughout the notification. The ministry indicates that BESS installations will store surplus rooftop solar output and release it during peak demand, while targeted network works will address bottlenecks and voltage variability. The approach will help to streamline project finance and shorten delays in connecting distributed resources.

Under the arrangement, DISCOMs will be able to aggregate unspent household balances and allocate them to locally prioritised projects that strengthen distribution feeders and improve system resilience. The move is intended to lower non technical losses and support more predictable load management as distributed resources expand. Implementing agencies are to maintain beneficiary consent records and digital accounting to reconcile transfers.

The ministry frames the decision as part of a broader effort to accelerate clean energy adoption and to meet national renewable targets. Stakeholders will be required to follow eligibility criteria and reporting norms that aim to protect household beneficiaries while enabling scaled deployment of storage and grid works. The policy is designed to support smoother integration of household solar without imposing additional financial burden on beneficiaries.