Budgetary Allocation for PM Surya Ghar up by 80 Percent; Green Hydrogen and Bio-Energy See Uptick
The Union Budget 2025-26 has significantly boosted the solar energy sector, increasing total allocation by 60.83 percent to INR 24,224.35 crore from the previous year’s INR 15,061.35 crore, with the PM Surya Ghar Muft Bijli Yojana receiving the largest share at INR 20,000 crore—an 80.18 percent rise from INR 11,100 crore in 2024-25.
February 03, 2025. By Mrinmoy Dey
The lion’s share among the schemes in the solar energy programmes has gone to PM Surya Ghar Muft Bijli Yojana which has been allocated INR 20,000 crore. This a staggering 80.18 percent increase from 2024-2025’s revised estimates of INR 11,100 crore.
Launched by Prime Minister Narendra Modi in February 2024, the PM Surya Ghar Yojana aims to provide free electricity by enabling rooftop solar installations for one crore households. As of November 2024, 6.34 lakh rooftop solar installations had been recorded on the national portal.
As per MNRE projections, around 10 lakh installations are projected by March, doubling to 20 lakh by October, 40 lakh by March 2026, and ultimately achieving the target of one crore by March 2027. And, understandably, the emphasis is being reflected on the budgetary allocation.
PM-KUSUM has been allocated INR 2,600 crore – a 2.97 percent increment from previous year’s INR 2,525 crore.
While allocation for on-grid solar energy has been increased to INR 1,500 crore from INR 1,300 crore, allocation in off-grid solar energy has been reduced to 0.01 crore from 12 crore a year ago.
Allocation in wind power segment has been reduced by about 37.50 percent to INR 500 crore from INR 800 crore in previous Budget.
Allocation in Hydro Power sector remains steady at about INR 51 crore. These funds will be utilized to provide Central Financial Assistance for Small Hydro Power project activities related to development of conducive environment and clean energy.
This year too, INR 600 crore has been allocated to developing green energy corridor. Provision of Central Financial Assistance will be utilised for capacity addition of Cumulative 6000 ckm transmission infrastructure under intra state Green Energy Corridor Project.
In line with the government’s focus on developing the green hydrogen sector, the allocation has doubled to INR 600 crore from INR 300 crore a year ago. “The provision is to make India the Global Hub for production, usage and export of Green Hydrogen and its derivatives and to achieve the aim of being self-sufficient through clean energy and serve as an inspiration for the global Clean Energy Transition,” mentioned the Budget document.
Bio-energy segment also saw an increase of 75.68 percent in allocation with INR 325 crore being allocated in this Budget.
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