Union Budget 2024: Accelerating Solar Adoption And Energy Innovation In India

The Union Budget 2024 has made a strong commitment to India’s clean energy future, showing significant progress towards sustainable energy solutions. The budget includes several policies and financial investments designed to speed up the shift from fossil fuels to renewable energy. This is crucial for improving energy security and protecting the environment.

One major initiative is the PM Surya Ghar Muft Bijli Yojana. This scheme plans to install rooftop solar panels in one crore households, providing them with 300 units of free electricity. By making solar energy more accessible to homes, this program aims to increase the use of renewable energy and support economic growth.

The Union Budget 2024 has been widely recognized for its significant strides towards India’s clean energy transition. Mr. Sumant Sinha, Founder, Chairman & CEO of ReNew, the Union Budget 2024 has undeniably taken forward the Prime Minister’s commitment towards India’s clean energy transition. The Finance Minister’s announcement that the Government will release a policy document on India’s energy transition pathway and policy on pumped storage will provide much needed long-term clarity for investments across the value chain. The continuation of the PM Surya Ghar Muft Bijli scheme, on the back of an overwhelming response for its subscription, underscores the growing appetite for clean energy solutions among citizens, aligning perfectly with our national sustainability goals.

Additionally, with nuclear energy poised to be a cornerstone of our energy mix, and innovative nuclear technologies being developed in partnership with the private sector, the future looks promising. With continued policy support, accessible financing, and robust public participation, I am confident that we will achieve our renewable energy aspirations for a cleaner, more resilient, and economically vibrant India.”

Mr. Sameer Gupta, Chairman & Managing Director of Jakson Group, The Union Budget 2024 is a major milestone for the nation, fostering economic growth, infrastructure development, and energy independence. The PM Suryaghar Muft Bijli Yojana, aimed at installing rooftop solar panels in 1 crore households to provide 300 units of free electricity, is transformative in making sustainable energy accessible. This will boost solar adoption in the residential sector and drive economic growth. Special attention has been given to MSMEs and manufacturing. The support includes a Credit Guarantee Scheme, term loans for machinery, and technology financing packages. These measures will help MSMEs scale up and enhance competitiveness. The budget also prioritizes infrastructure development with long-term interest-free loans to states and significant project allocations, enhancing connectivity, economic activities, and overall quality of life across the nation.

Additionally, the simplified rules for foreign direct investment and overseas investment will open new avenues for global expansion, attract international investments, and enhance our global footprint. Jakson is leveraging these opportunities to drive innovation and expand globally. These measures will advance the renewables sector, and help combat climate change. This budget marks a transformational shift in the Indian energy landscape. Jakson is dedicated to advancing a sustainable and inclusive future, fostering innovation, and driving economic empowerment.

Mr. Gyanesh Chaudhary, CMD of Vikram Solar Limited, The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial ₹7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India’s energy transition.

Amit Jain, Global Chief Executive Officer of Sterling and Wilson Renewable Energy Group, As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people. We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country.  The PM Surya Ghar Muft Bijli Yojana which involves installation of rooftop solar plants to enable one crore households obtain free electricity is a step in the right direction and shall promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability.

The proposed policy to promote pumped storage projects for electricity storage will help facilitate smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India’s renewable energy infrastructure – both greenfield and brownfield will require skilled workforce to ensure efficient project execution, while reducing cost and time overruns. We therefore welcome the government’s focus towards upskilling 20 lakh youth over a 5-year period and upgrading 1,000 Industrial Training Institutes.

Rahul Walawalkar, President of India Energy Storage Alliance (IESA) and IESA Academy, welcomed the budget’s focus on employment generation and skilling, particularly in the clean tech and EV sectors. He praised the initiatives for skilling youth and enhancing women’s participation in the workforce. Walawalkar also highlighted the support for pumped hydro storage and critical minerals, which he believes will strengthen India’s position as a global hub for renewable energy.

Sachidanand Upadhyay, MD of Lord’s Mark Industries Limited, commended the budget’s commitment to solar energy, which is crucial for India’s goal of generating 500 GW of renewable energy by 2030. He highlighted the introduction of the PM Surya Ghar Muft Bijli Yojana as a transformative initiative and praised the strong public response with 1.28 crore registrations. Upadhyay’s company is contributing to this vision by securing a project to set up 50 MW of grid-connected rooftop solar projects in Uttar Pradesh.

Saurabh Kumar, Vice President-India at Global Energy Alliance for People and Planet (GEAPP), noted the budget’s emphasis on energy security and transition. He anticipated that the development of energy transition pathways would support state-level initiatives for renewable energy adoption and highlighted the importance of financial support for MSMEs transitioning to cleaner energy.

Mr. Udit Garg, CEO & Director of Kundan Green Energy, expressed optimism about the budget’s impact on the green energy sector. He highlighted the importance of the rooftop solar policy and its potential to advance India’s renewable energy agenda, as well as the role of pumped storage in hydropower resilience.

Arif Iqbal Aga, Director of SgurrEnergy India, recognized the budget’s provisions for sustainable energy, including policies for pumped storage projects and small modular nuclear reactors. He emphasized the potential of the PM Surya Yojana to alleviate grid burdens and empower households. Aga also stressed the importance of effective execution and regulatory support for these initiatives.

Mr. Nitin Gupta, Co-Founder & CEO of Attero, discussed the transformative shift towards small modular reactors and the focus on climate finance in the budget. He emphasized the importance of regulatory frameworks and incentives for private sector participation in advancing nuclear energy and critical minerals processing. Gupta is optimistic about India’s potential to become a global recycling hub for critical minerals.

Mr. Gopal Kabra, Founder & MD of GK Energy, described the budget as progressive and supportive of the solar sector’s growth. He highlighted the custom duty exemption on solar capital goods and the PM Suryaghar initiative, which is set to accelerate rooftop solar installations and enhance energy security. Kabra also noted the establishment of a carbon market as a step towards a self-reliant solar ecosystem in India.

SK Gupta, CFO of AMPIN Energy Transition, reviewed the budget positively, highlighting various initiatives such as the PM-Surya Ghar Muft Bijli Yojna and the promotion of pumped storage projects. He also called for amendments to address critical demands such as lower GST rates for renewable energy components and enhanced support for in-house R&D.

Mr. Manish Dabkara, Chairman & MD of EKI Energy Services Ltd., praised the budget’s strategy for sustainable development and energy security. He highlighted the importance of the rooftop solarization scheme, pumped storage projects, and the promotion of small modular nuclear reactors. Dabkara also commended the focus on circular economy principles and extended producer responsibility.

Mr. Harsh Shah, CEO of IndiGrid, welcomed the rationalization of long-term capital gain taxation for Business Trusts. He believes this will enhance the attractiveness of InvITs/REITs and potentially increase their presence in stock exchange indices.

Girishkumar Kadam, Senior Vice President & Group Head – Corporate Ratings at ICRA Ltd., praised the budget’s focus on green energy and increased allocation to solar power. He also highlighted measures to promote critical minerals and battery storage projects, which will support renewable capacity addition and grid integration.

Dr. Ranjeet Mehta, Executive Director at PHDCCI, emphasized the significance of support for Bharat Small modular reactors in achieving energy independence and climate sustainability, alongside the government’s focus on renewable energy sources.

Ms. Preeti Bajaj, MD & CEO of Luminous Power Technologies, commended the budget for its significant boost to the energy sector, highlighting its commitment to energy security and sustainability. She emphasized the revolutionary impact of the PM Surya Ghar Muft Bijli Yojana, noting its strong precedent for sustainable energy adoption in India. Bajaj welcomed the proposal to expand the list of exempted capital goods used in solar panel manufacturing, which she sees as a major step towards promoting solar energy and achieving net zero targets.

Mr. Hanish Gupta, Founder & CEO of Sunkind Energy, echoed these sentiments, celebrating the budget’s alignment with India’s vision for 2047. He applauded the government’s initiative to equip one crore households with rooftop solar panels and the expanded exemption for capital goods in solar panel production. Gupta also noted the budget’s support for job creation and its contribution to India’s ambitious target of 500 GW of renewable energy by 2030.

Mr. Pashu Gopalan, President & CEO of Fenice Energy, acknowledged the continued support for the PM Surya Ghar Yojana but raised concerns about its implementation. He highlighted potential issues such as the lack of suitable rooftops for low-income households and the need for improved system quality to avoid public dissatisfaction. Gopalan called for a proactive approach to monitoring and quality assurance to ensure the program’s success.

Tabreed’s MD – Asia & Country Manager – India, Mr. Sudheer Perla, expressed optimism about the budget’s focus on urban development, infrastructure, and energy security. He underscored how Tabreed’s energy-efficient cooling solutions can help alleviate grid stress and integrate with renewable energy systems, supporting a greener and more sustainable future.

Vipin Tiwari, Corporate Strategy Manager at AXITEC Energy India Pvt. Ltd., welcomed the government’s import duty exemptions for photovoltaic projects. He noted that this move would ease financial burdens and support India’s goal of 280 GW of solar capacity by 2030. Tiwari expressed support for continued collaboration with policymakers to foster a favorable environment for the solar industry. (Duty will be nil on Solar manufacturing equipment which was 7% earlier will help reduce the price). Additionally, Now the duty on Solar Glass & Interconnector will be 10% and 5% respectively.

Mr. Rajinder Kaul, Chairman & Managing Director of Sharika Enterprises, expressed confidence in the government’s substantial investment in the renewable energy sector. He praised the lowering of the turnover threshold for MSMEs and highlighted the ambitious target of 500 GW of renewable energy by 2030.

Gautam Das, Founder & CEO of Oorjan Cleantech, welcomed the budget’s focus on renewable energy programs and private-public partnerships. He stressed the importance of transparent policy implementation and the role of solar energy in reducing fossil fuel dependence and environmental impacts.

Mini Nair, CFO of Geojit Financial Services, commented on the budget’s alignment with sustainable growth and the government’s commitment to renewable energy and green initiatives. She welcomed the expansions in solar energy and pumped storage projects, and expressed support for collaboration with the private sector on climate finance and nuclear technologies.

Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, noted the budget’s emphasis on green skill development and the PM Surya Ghar Muft Bijli Yojana’s role in providing free electricity. He highlighted the need for skilled manpower in infrastructure and renewable energy sectors, facilitated by the establishment of a Critical Mineral Mission.

The budget emphasizes the importance of long-term clarity and investment in the energy sector. The government’s commitment to releasing a policy document on India’s energy transition pathway and policy on pumped storage reflects a strategic approach to achieving the nation’s renewable energy goals. Additionally, substantial allocations for solar projects, exemptions on capital goods for solar manufacturing, and incentives for MSMEs highlight a comprehensive plan to support various aspects of the clean energy value chain.

Despite these positive steps, several challenges remain. The successful implementation of the PM Surya Ghar Muft Bijli Yojana depends heavily on effective execution and coordination between central and state governments. Ensuring robust public participation and addressing regulatory hurdles are critical to the scheme’s success. Furthermore, while the focus on pumped storage and small modular nuclear reactors is commendable, these projects require significant investment and technological advancements, which could pose difficulties in the short term.

The Union Budget 2024 marks a significant milestone in India’s journey towards a cleaner and more sustainable energy future. By fostering innovation, supporting MSMEs, and providing financial incentives, the budget lays a strong foundation for the renewable energy sector. However, the true impact of these initiatives will depend on their effective implementation and the continued support from both public and private stakeholders. As India moves towards its goal of generating 500 GW of renewable energy by 2030, the measures outlined in this budget will play a crucial role in shaping a resilient and economically vibrant energy landscape.