Budget 2025: Green energy sector may get ₹10,000cr boost
What's the story
The Union budget for FY 2025-26 is likely to earmark an additional ₹10,000 crore for new and renewable energy.
The hike will mainly fund the PM Surya Ghar scheme, which plans to install 50 lakh rooftop solar panels by March 2026.
As per Moneycontrol, the sector's total budget is expected to touch around ₹30,000 crore, a massive jump from the last fiscal year's ₹19,100 crore allocation.
Scheme extensions
Flagship schemes to benefit
The enhanced budget is also likely to expand a few flagship schemes. These are the Green Energy Corridors (GECs), PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), the National Green Hydrogen Mission, and Renewable Energy Parks (solar power - grid).
Scheme progress
PM Surya Ghar scheme requires accelerated implementation
The government aims for 50 lakh solar power installations under PM Surya Ghar scheme. So far, only seven lakh rooftop installations have been completed, calling for accelerated implementation in FY26.
This acceleration will require additional budgetary support.
The cabinet approved the PM Surya Ghar program on February 29, 2024 with an outlay of ₹75,021 crore and a target to achieve one crore rooftop installations in the residential sector by FY27.
Infrastructure funding
Green energy corridors to receive more funds
The government's Green Energy Corridors, an initiative to build transmission and distribution infrastructure for efficient transfer of renewable energy to the national grid, is likely to get more funding.
Renewable energy parks shall also be prioritized.
The ministry said, "With a commitment to achieving 500 GW of non-fossil fuel-based energy capacity by 2030, India is emerging as a global leader in clean energy."
Energy milestone
India's non-fossil fuel-based energy capacity reaches new high
As of January 20, India's total non-fossil fuel-based energy capacity stood at 217.62 GW.
In just 2024, 24.5 GW of solar capacity and 3.4 GW of wind capacity were added, more than doubling solar installations and increasing wind installations by 21% over the previous year.
The ministry credited government incentives, policy reforms, and higher investments in domestic solar and wind turbine manufacturing for the surge.
Industry expectations
Renewable industry anticipates support for local manufacturing
The renewable industry is hoping for a push for local manufacturing in the next Union Budget.
Experts are optimistic that the government will incentivize domestic manufacturing in new and emerging spaces within renewables, and tackle execution problems in the rollout of clean-energy adoption.
They also anticipate continued focus on the power sector, especially renewable energy initiatives, in the upcoming budget announcement.