Interim Budget 2024: Rooftop Solar Scheme “Breaks Barriers”, Say Industry Leaders

Finance Minister Nirmala Sitharaman on Thursday presented the Interim Budget in which she said that India’s economy is going through a profound transformation. She also highlighted the welfare initiatives taken by the government for the poor, women youth and farmers. In her speech, Ms Sitharaman talked about the benefits of rooftop solarisation, introduced by Prime Minister Narendra Modi on January 22 after the consecration at the Ram temple in Ayodhya. This initiative involves the installation of solar panels on the rooftops of 1 crore households across India, highlighting the government’s commitment to sustainable energy solutions.

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“This scheme follows the resolve of Hon’ble Prime Minister on the historic day of consecration of Ram Mandir in Ayodhya. Following benefits are expected: Savings of up to Rs 15,000-18,000 annually for households from free solar electricity and selling the surplus to the distribution companies, charging of electric vehicles, entrepreneurship opportunities for a large number of vendors for supply and installation and employment opportunities for the youth with technical skills in manufacturing, installation and maintenance,” Ms Sitharaman said in Parliament today.

Industry leaders gave thumbs up to the scheme, saying it breaks barriers to rooftop solar adoption.

“While the budget 2024 remains relatively silent on clean energy, it underscores the significance of the Pradhan Mantri Suryoday Yojana. Despite being limited to households with income 1-1.5 lakh per annum, this initiative breaks barriers to rooftop solar adoption, addressing the crucial upfront capital hurdle. It not only enhances access to power but also extends electricity reach to areas lacking a stable grid. While not a game-changer in GW statistics, it is a life-changer for many who are in desperate need of power. The focus on empowering households aligns with a sustainable, inclusive future,” said Tanya Singhal, founder of Mynzo Carbon & SolarArise.

“Solar energy’s expansion is going to get a boost with the announcement of rooftop project which will provide for free electricity of 300 units per month and from solar surplus. More support to electric vehicles will generate more jobs for vendors/youth in the sector of installation and maintenance,” said Manmeet Kar, Partner, Karanjawala & Co, in Delhi.

Called ‘Suryodaya Yojana’, the scheme focuses on putting solar panels on the rooftops of homes, turning sunlight into electricity for individual households.

It has been launched keeping in view the huge demand for energy in the coming years.

The scheme reduces individual household reliance on conventional electricity, potentially saving money for households.

The scheme comes at a time when India is striving to achieve a renewable energy capacity of 500 gigawatts by 2030. Solar power capacity in India has witnessed a substantial surge, escalating from under 10 megawatts in 2010 to an impressive 70.10 gigawatts by the year 2023.