Union Budget 2025: Power Sector Received ₹1,500 Crore for Solar Power Grid

In the Union Budget 2025, announced on February 1, the Indian government allocated ₹1,500 crore to the solar power grid segment, further solidifying its commitment to a renewable energy future. This allocation marks a continuing trend of increasing financial support for solar power, building on the ₹8,000 crore allocation from last year, a significant rise from ₹4,757 crore in the revised estimates for FY23-24.

India’s solar energy sector has seen remarkable growth in recent years, reflecting the country’s strong push for sustainable development and energy security. In the fiscal year 2022-23, the allocation reached ₹3,304.03 crore, setting a new high compared to ₹2,369.13 crore in 2021-22.

India’s Solar Power Journey

The growth of India’s solar power sector is no accident. The government has launched several initiatives aimed at accelerating solar energy adoption across the nation. Key schemes like the Solar Parks, Viability Gap Funding (VGF), the Central Public Sector Undertaking (CPSU) scheme, the Defence scheme, Canal Bank and Canal Top schemes, the Bundling Scheme, and the Grid-Connected Solar Rooftop Scheme have played vital roles in boosting the sector.

Solar Park Scheme

One of the government’s primary initiatives is the development of solar parks, which are large-scale projects designed to facilitate solar power generation across the country. The National Solar Mission supports these parks, which provide developers with ready-made infrastructure, thus reducing the cost and time required to set up solar plants. This has been a key factor in driving the rapid growth of solar energy capacity in India.

Viability Gap Funding (VGF)

The VGF scheme has helped bridge the financial gap between the actual cost of solar projects and what is commercially viable. By offering financial support to developers, this scheme makes it easier for them to secure funding and bring solar projects to fruition. This, in turn, has helped India expand its solar power generation capacity.

Central Public Sector Undertaking (CPSU) Scheme

Under the CPSU scheme, public sector companies set up large-scale solar power projects. This initiative has been a crucial part of India’s renewable energy targets, contributing significantly to the country’s solar capacity and helping meet ambitious energy goals.

Conclusion

Thanks to these initiatives and the government’s forward-thinking policies, India has made remarkable strides in solar energy. In fact, India has recently overtaken Japan to become the world’s third-largest solar power producer. This milestone highlights the country’s commitment to leading the renewable energy transition on a global scale.

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