The Budget may see at least a Rs 10,000-crore increase in allocation towards new and renewable energy, including a renewed push for the PM Surya Ghar: Muft Bijli Yojana, which aims to harness solar power to help meet India's energy needs, officials have told Moneycontrol.
Finance minister Nirmala Sitharaman will present the Budget for the financial year 2025-26 on February 1.
For FY25, the ministry of new and renewable energy (MNRE) was allocated Rs 19,100 crore and in 2023-24 the outlay was Rs 7,848 crore.
For FY26, the Budget is likely to see extensions of flagship schemes, which include PM Surya Ghar, Green Energy Corridors (GECs), PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), Renewable Energy Parks (solar power - grid) and the National Green Hydrogen Mission, a senior official said on condition of anonymity.
“From Rs 19,100 crore in FY25, the budget for the new and renewable energy sector is likely to go up to Rs 30,000 crore, of which a major chunk may go towards the PM Surya Ghar Muft Bijli Yojana. This is because the scheme has to be implemented in record time,” a second official said.
The government has set a target of having 50 lakh solar installations under the PM Surya Ghar scheme by March 2026, documents reviewed by Moneycontrol show.
As of now, seven lakh rooftop installations have been done, which means the programme will have to pick up pace in FY26 and will need additional budgetary support.
The cabinet on February 29, 2024 approved the PM Surya Ghar programme with an outlay of Rs 75,021 crore and a target to achieve one crore rooftop solar installations in residential sector by FY27.
The Rs 75,021 crore outlay is supposed to be spread out over three years from the date of announcement or beyond, as decided by the government from time to time.
Green energy corridors, the government’s programme to build transmission and distribution infrastructure for efficient transfer of renewable energy to the national grid, is also likely to get more funds. Renewable energy parks will also be in focus.
“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,” the ministry said in a statement on January 22.
As on January 20, India’s total non-fossil fuel based energy capacity reached 217.62 GW. A record-breaking 24.5 GW of solar capacity and 3.4 GW of wind capacity were added in 2024, a more than two fold increase in solar installations and a 21 percent rise in wind installations compared to 2023, the ministry said in a statement.
The surge was driven by government incentives, policy reforms, and increased investments in domestic solar and wind turbine manufacturing. “Solar energy remained the dominant contributor to India’s renewable energy growth, accounting for 47 percent of the total installed renewable energy capacity,” it said.
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