Budget 2024 Highlights: Free Electricity Via Rooftop Solar, VGF for Offshore Wind

The budget estimates for on grid solar power programs was increased from ₹49.7 billion to ₹85 billion


Union Finance Minister Nirmala Sitharaman unveiled key measures during the presentation of the 2024 interim budget, signaling a significant push towards sustainable energy and electric mobility.

One of the standout announcements involves providing up to 300 units of free electricity every month to 10 million households through rooftop solarization. This move aims not only to make clean energy accessible to a large segment of the population but also to encourage the widespread adoption of solar power.

The announcement follows the recent Pradhan Mantri Suryodaya Yojana initiative, which aims to reduce the electricity expenditure of poor and middle-class households while enabling India’s self-reliance in the field of energy.

Sitharaman also said the program would lead to the accruing of multiple benefits, including savings of up to ₹15,000 ($180) -₹18,000 ($216) annually for households from free electricity and selling the surplus to the DISCOMs.

In a bid to harness the potential of offshore wind energy, the Finance Minister announced viability gap funding for offshore wind projects with a cumulative capacity of 1 GW. This financial support is expected to propel the development of offshore wind projects, contributing to India’s renewable energy goals.

The budget also saw revision of estimates for various programs such as solar power (on grid) from ₹49.7 billion (~$598.92 million) to ₹85 billion (~$1.02 billion), National Green Hydrogen Mission from ₹2.97 billion (~$35.79 million) to ₹6 billion (~$72.31 million), and Green Energy Corridor from ₹5 billion (~$60.26 million) to ₹6 billion (~$72.31 million).

The revisions, however reduced the budget estimate outlay for wind power (on grid) from ₹12.14 billion (~$146.3 million) to ₹8 billion (~$96.41 million) and Program for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicle in India – (FAME – India) from ₹51.72 billion (~$623.28 million) to ₹26.71 billion (~$321.88 million).

Budget 2024-25 Renewable Energy Programs Outlay

The government is set to expand and fortify the electric vehicle ecosystem by providing support for manufacturing and charging infrastructure. The focus will be on promoting greater adoption of electric buses (e-buses) for public transport networks through the implementation of a robust payment security mechanism. This is expected to enhance public transport networks, contributing to a more sustainable and eco-friendly urban mobility landscape.

A noteworthy move towards sustainable fuel sources includes the mandatory blending of compressed biogas into compressed natural gas and piped natural gas for transportation. This initiative aligns with the government’s commitment to promoting cleaner and greener alternatives in the transportation sector.

The government is set to launch a Biomanufacturing and Bio Foundry Program, a pioneering initiative aimed at providing environmentally friendly alternatives for bio-degradable production. This program underscores the commitment to fostering sustainable practices and reducing the environmental impact of industrial processes.

Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.


(The article updates with the budget outlay for major renewable energy programs)