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One crore households to get 300 units free electricity every month through rooftop solarisation
Context
This measure would translate to benefits of ?15,000-18,000 annually for households from free solar electricity and selling the surplus to distribution companies, says Finance Minister
Indian Government's Ambitious Rooftop Solar Initiative in Budget 2024
Empowering One Crore Households with Rooftop Solar Installations
Prime Minister Narendra Modi's promise to electrify one crore households via rooftop solar installations has been reiterated by Finance Minister Nirmala Sitharaman in the Interim Budget 2024-25.
Financial Commitment and Scope
- 300 units of free electricity: Minister Sitharaman highlighted the commitment to provide up to 300 units of free electricity every month through rooftop solarization.
- Annual benefits: This initiative is anticipated to bring annual benefits of ?15,000-18,000 for households, allowing them to sell surplus power to distribution
- Increase from the previous year: The budget for 2024-25 allocates ?4,555 crore, a substantial increase from the previous year's ?2,167 crore expenditure on the rooftop solar power program.
Current Scenario and Challenges
- 11 GW of installed rooftop solar capacity: India presently has approximately 11 GW of installed rooftop solar capacity, with a mere 2.7 GW in residential units and the rest in commercial or industrial spaces.
Financial Incentives and Challenges
- Funding of new installations: The Finance Minister did not specify whether the government would fund new installations or solely subsidize them.
- India's low uptake of rooftop solar systems is attributed to limited electricity consumption and existing subsidies for coal-fired electricity, making even subsidized solar power comparatively expensive.
Viability Gap Funding for Offshore Wind Sector
- Viability gap funding: Apart from the rooftop solar initiative, Sitharaman announced 'viability gap funding' to support the capital-intensive offshore wind sector, up to 1 gigawatt capacity.
- Private sector investments: This move is expected to encourage private sector investments in sea-based wind farms, tapping into India's potential 72 GW of offshore wind in Gujarat and Tamil Nadu.
Way Forward: Lack of Details Raises Questions
- Despite these announcements, the Finance Minister did not provide details on funding for new installations, demographic targeting, or a specific timeline for the rooftop solar initiative.
- However, the increased budget allocation signals a significant push towards sustainable energy solutions in India.
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