The budget for the fiscal year 2026 has notably enhanced funding for the renewable energy sector, with significant hike in projected allocations for the Ministry of New and Renewable Energy (MNRE). India’s dedication to transitioning towards renewable energy is evident in the Union Budget for 2025-26, which allocated Rs 26,549.38 crore to the Ministry of New and Renewable Energy. This represents a significant increase of 53.48% compared to the Revised Estimates of Rs 17,298.44 crore from the previous year. Furthermore, this allocation has surged by 904% since the fiscal year 2021.
The government has designated Rs 24,224.36 crore from the total funds for solar energy initiatives. This allocation comprises Rs 1,500 crore for solar power (grid), Rs 2,600 crore for the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM), and Rs 20,000 crore for the PM Surya Ghar Muft Bijli Yojana.
Initiated last year, this ambitious initiative aims to provide up to 300 units of free electricity each month while also encouraging the adoption of rooftop solar technology among one crore households. The program is designed to assist lower- to middle-income families, offering considerable financial support that covers 60 percent of the costs for 2 kW systems and 40 percent for systems with capacities between 2-3 kW.
This initiative has been crucial in promoting the adoption of rooftop solar systems (RTS) within the residential sector. By December 2024, a remarkable total of 630,000 installations have been achieved, reflecting a significant rise in the monthly installation rate, which currently reaches 70,000.
In recent years, the solar power industry in the country has witnessed significant expansion, in accordance with the government’s commitment to sustainable development. Solar inverter plays an important role in generation of solar energy. The National Institute of Solar Energy (NISE) has evaluated India’s solar potential to be approximately 748 GW, based on the assumption that 3% of the wasteland area would be utilized for Solar PV installations. Solar energy plays a pivotal role in India’s National Action Plan on Climate Change, with the National Solar Mission (NSM) identified as one of the principal initiatives.
