How the Union Budget 2024 Paves the Way for Solar Energy in India

In the latest budget announcement, significant funding has been allocated to renewable energy projects, focusing particularly on solar energy. This marks a positive step towards transitioning to cleaner, sustainable energy sources and reducing reliance on fossil fuels.

During her Budget speech, the Finance Minister highlighted the success of the "PM Surya Ghar Muft Bijli Yojana" rooftop solar scheme, which garnered over 1.28 crore registrations and 14 lakh applications. This initiative forms part of a broader effort to promote green growth and renewable energy development.

The government aims to install rooftop solar plants in 1 crore households by FY2026-27, with a total financial commitment of Rs 75,021 crore under this scheme. It is projected to add 30 GW of rooftop solar capacity across households and government buildings.

Recognizing the imperative of solar energy in combating climate change and promoting energy transition, the Finance Minister proposed expanding the list of tax-exempt capital items used in solar panel production. Additionally, the decision was made not to extend customs tax exemptions on solar cells and panels to encourage domestic manufacturing of solar glass and tinned copper interconnects.

In the budget allocation for solar energy, Rs 8,500.35 crore has been earmarked for grid-connected solar electricity, representing a 79% increase over the revised estimates of the 2023–2024 Budget. The Total-Solar Energy category received Rs 16,394.75 crore in the Union Budget 2024–2025, compared to Rs 6,041.56 crore in the revised expectations for 2023–2024.

The interim budget included several renewable energy initiatives, such as funding for the first 1 GW of offshore wind energy potential and capacity building for coal gasification and liquefaction to reduce imports of ammonia, methanol, and natural gas. It also introduced an additional Rs 600 crore allocated towards the green hydrogen initiative. The budget also provides for research and development in renewable energy, particularly in advancing solar technology to enhance its competitiveness against conventional fossil fuels.

Frevolt, through its innovative platform, aims to facilitate solar energy solutions in alignment with India's Union Budget announcements. The app streamlines the purchase, operation, and maintenance of solar power plants for homeowners, supporting their entire lifecycle needs. Frevolt continues to enhance its offerings, introducing features like financing options, new solar products, and comprehensive installation, maintenance, and cleaning services.

In conclusion, the budget underscores the government's strong commitment to a sustainable, green future, especially in renewable energy, particularly solar. These investments are poised to drive significant advancements in the renewable energy sector and pave the way for a cleaner environment for all.