PLI Scheme Boost
The Production Linked Incentive (PLI) scheme is viewed as a crucial tool for bolstering domestic manufacturing capabilities within the solar industry.
The industry is specifically hoping for increased support for capital-intensive components. This focus aims to reduce reliance on imports and stimulate local production. By incentivizing manufacturing, the government can help create jobs and strengthen the overall economy. This support is expected to encourage investment in technology and infrastructure, helping India to become a global hub for solar component manufacturing. A robust PLI push is seen as essential for achieving India's ambitious renewable energy targets and fostering long-term industry sustainability.
PM-Kusum 2.0 Vision
The PM-Kusum 2.0 initiative is also at the forefront of the solar industry's budgetary expectations. This scheme aims to help farmers set up solar power plants on their lands, ensuring a stable income and promoting the use of renewable energy in agriculture. The industry seeks continued and enhanced support for PM-Kusum 2.0, believing it's a vital program to decentralize power generation and improve rural electrification. Support might include easier financing options, streamlined approvals, and enhanced subsidies. Such backing could boost farmers' participation and accelerate the overall transition towards clean energy sources. The successful implementation of PM-Kusum 2.0 is seen as a key step towards achieving India's renewable energy goals, while simultaneously empowering rural communities and boosting agricultural income.
PM Surya Ghar Acceleration
Another key expectation revolves around the PM Surya Ghar scheme. This initiative focuses on promoting rooftop solar installations across residential buildings. The solar industry expects budgetary provisions that support the wide adoption of rooftop solar systems. Such support could manifest in the form of incentives, subsidies, and simplified regulatory processes. A strong push for PM Surya Ghar can help to bring down energy costs for residential consumers while reducing the country's reliance on fossil fuels. Enhanced financial support will encourage more households to switch to solar energy, leading to a surge in demand for solar panels and related equipment. This will accelerate India's transition to a sustainable energy future, reducing the carbon footprint and promoting energy independence at the consumer level.
Energy Storage Funding
The Indian solar industry is also keen on addressing the challenge of energy storage. A major request for the Union Budget is viability gap funding (VGF) for energy storage projects. This funding aims to make storage solutions more economically viable, encouraging wider adoption. The industry recognizes the critical need for storage to manage the intermittency of solar power. VGF can reduce the initial capital investment required for storage projects. This can attract more private sector investment and accelerate the deployment of storage technologies. By supporting energy storage, the budget can enhance the reliability of the grid, enable better integration of renewable energy sources, and facilitate a smoother transition towards a sustainable energy future. Addressing energy storage challenges is seen as crucial for realizing the full potential of India's solar power capacity.
