Budget 2025 - Key Announcements for Solar Energy Sector

India has established itself as a global leader in green energy, and the Union Budget 2025 aims to strengthen this position. With a focus on achieving net-zero emissions by 2070 and fulfilling 50% of its electricity needs with renewable sources by 2030, the budget includes several provisions to support this transition. Below are the key budget 2025 highlights for the solar energy sector:

Budget Allocation and Financial Support

• ₹26,549 crore allocated to new and renewable energy, an increase of ₹9,251 crore from previous budgets.

• ₹600 crore for green energy corridors to help evacuate renewable energy.

• ₹2,600 crore for PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), up from ₹2,525 crore last year.

• ₹20,000 crore to PM Surya Ghar: Muft Bijli Yojana, an 80% increase from ₹11,100 crore.

• ₹600 crore to the National Green Hydrogen Mission, up from ₹300 crore.

Government Initiatives and Reforms

• The budget allocation mainly focuses on PM Surya Ghar: Muft Bijli Yojana to harness solar energy for meeting the country’s energy needs.

• Extensions of various government schemes like PM Surya Ghar, Green Energy Corridors, Renewable Energy Parks, PM-KUSUM, and the National Green Hydrogen Mission.

Key Announcements for the Solar Sector in Union Budget 2025

1. Increased Funding for Solar Projects
   A dedicated INR 10,000 crore fund has been allocated for the development of large-scale solar parks, rooftop installations, and off-grid solutions, stimulating private investment and sector growth.

2. PLI Scheme Extension
   The Production-Linked Incentive (PLI) scheme for solar modules has been extended with an additional INR 24,000 crore to promote domestic manufacturing and reduce reliance on imports.

3. Customs Duty Reductions
   Customs duties on solar components like inverters and batteries have been reduced, making solar projects more cost-effective.

4. PM Surya Ghar Yojana 2.0
   A new scheme aims to install rooftop solar in 10 million households over the next three years with subsidies and low-interest loans.

5. 2,600 crore for PM-KUSUM
   The PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) allocation has risen by 3% to ₹2,600 crore from ₹2,525 crore in FY25, aiming to boost farmers' income, provide irrigation, and reduce diesel dependency in agriculture.

6. Green Hydrogen Integration
   INR 2,000 crore has been allocated for green hydrogen projects powered by solar energy, strengthening the synergy between the two sectors.

7. R&D Boost
   The Budget allocates INR 1,500 crore for R&D in advanced solar technologies to drive innovation and cost reductions.

8. Tax Benefits for Developers
   Tax holidays and accelerated depreciation benefits for solar developers will enhance project viability.

9. Grid Modernization and Expansion
   INR 5,000 crore will be invested in modernizing grid infrastructure to accommodate more solar energy.

Comparison with Budget 2024 Provisions

While Budget 2024 made significant strides in green energy, Budget 2025 builds upon those foundations. In Budget 2024, the government allocated:

• ₹10,222 crore for the renewable energy sector.

• Additional funds were allocated for solar energy projects, green fuel initiatives, and green energy in farming.

In comparison, Budget 2025 has significantly increased funding and introduced new initiatives, particularly in solar energy and green hydrogen, reflecting India’s intensified commitment to its clean energy goals.

Impact and Future Outlook for the Green Energy Sector Post-Budget 2025

The Budget’s provisions will significantly boost India’s renewable energy capacity, driving the country closer to its net-zero emissions target by 2070 and 50% renewable energy share by 2030. By addressing challenges like high costs and grid integration, the Budget sets the stage for a thriving solar industry, fostering innovation, job creation, and sustainable energy adoption.

Bluebird Solar’s Perspective on Union Budget 2025: A Game-Changer for India’s Solar Industry

Bluebird Solar, a leading solar panel manufacturer in India, welcomes the Union Budget 2025’s strong push for renewable energy. With increased allocations for solar projects, incentives for domestic manufacturing, and support for initiatives like PM Surya Ghar Yojana and PM-KUSUM, this budget reinforces India’s transition to clean energy. As a company committed to delivering high-efficiency Mono PERC Solar Panel and TOPCon solar modules, we see these reforms as a game-changer for the industry. Bluebird Solar remains dedicated to supporting India’s green energy mission by providing top-quality solar panels that drive sustainability and energy independence.

For bulk solar panel requirements and business inquiries, Contact us today!