Budget 2024 Boosts Green Hydrogen and Solar Energy Ecosystem in India
Key Ideas
  • Incentives worth ₹4,500 crore for Green Hydrogen set to roll out next month under the SIGHT scheme, showcasing government commitment to green energy transition.
  • Budgetary allocation for renewable energy doubled from ₹10,000 crores to ₹19,000 crores, emphasizing focus on strengthening the solar energy ecosystem in India.
  • 1.29 crore registrations for the new rooftop solar scheme demonstrate public interest, with 2.3 lakh units already installed in the short span of five months.
  • India aims to increase its solar module manufacturing capacity to 100 GW in the next 2 years, with a current capacity of 60 GW and support from customs duty waiver in the budget.
Bhupinder Singh Bhalla, Secretary of the Ministry of New and Renewable Energy (MNRE), announced significant developments in India's green energy transition during the Budget 2024 Verdict. The government is set to roll out incentives worth ₹4,500 crore for Green Hydrogen under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme next month. This move, combined with the near-doubling of budgetary allocation for renewable energy from ₹10,000 crores to ₹19,000 crores, reflects a strong commitment to enhancing the solar energy ecosystem in the country. The focus on solar energy is evident with the introduction of the new rooftop solar scheme, PM Surya Ghar Muft Bijli Yojana, which aims to install solar panels on 1 crore households. The scheme has already garnered immense interest, with 1.29 crore registrations on the national portal. Over 15 lakh applications have been received, resulting in the installation of 2.3 lakh units in just five months, showcasing rapid progress compared to previous schemes. India's ambition to boost solar manufacturing capacity is highlighted, with current capacity at 60 GW and a target of reaching 100 GW in the next two years. The government's waiver of customs duty is expected to further stimulate manufacturing growth. Additionally, the increase in the number of vendors on the national portal from 3,000 to 7,300, including 15 national vendors, indicates a growing ecosystem to support the solar energy initiatives. The Secretary also expressed optimism regarding the expansion of wind power manufacturing capacity in India, especially with the development of offshore wind energy projects. The overall sentiment is positive, with the government's proactive measures and increased investments signaling a promising future for green hydrogen and solar energy in the country.
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