Finance Minister Nirmala Sitharaman in her budget speech today announced that the Pradhanmantri Suryodaya Yojana aims to provide up to 300 units of free electricity per month to one crore families with rooftop solarisation, leading to an annual savings of up to Rs 18,000 for them. Prime Minister Narendra Modi launched the scheme in January with the target of installing rooftop solar.
What more did Sitharaman announce?
During the budget presentation, Sitharaman highlighted the advantages of the announcement, stating that households stand to benefit from savings ranging from Rs 15,000 to Rs 18,000 annually through the provision of free solar electricity and the ability to sell surplus power to distribution companies. The scheme is not only conducive to charging electric vehicles but also opens up entrepreneurial avenues for numerous vendors involved in the supply and installation processes. Furthermore, it presents employment opportunities for skilled youth engaged in manufacturing, installation, and maintenance.
In line with India’s commitment to achieving ‘net-zero’ by 2070, Sitharaman also revealed the introduction of viability gap funding to support the harnessing of offshore wind energy.
Industry’s reaction
Ashwani Sehgal, President of Indian Solar Manufacturers’ Association and MD of Alpex Solar, said, “It’s a very positive step that the government announced in its interim Budget that 1 crore homes would get solar panel installation.” This offers a robust 30 GW opportunity and has massive upside for solar manufacturers, he pointed out.
“This announcement by our finance minister is a big welcome and game changer for solar manufacturers, environment, local job creation and shall take solar panels to all nooks and corners of Bharat,” he added.
Anujesh Dwivedi, Partner, Deloitte India, said, “Empowering one crore households with rooftop solar installations, delivering up to 300 free units monthly, signifies a transformative synergy for the power sector.” Dwivedi emphasised that this initiative not only promotes the installation of renewable energy capacity in India but also tackles the persistent challenges of weak financial viability and dependency on subsidies for DISCOMs.
(With PTI inputs)
