Budget 2024: Solar stocks Suzlon Energy, Tata Power, others shine as FM proposes rooftop solar aid for 1 crore homes

Budget 2024: Shares of solar-related stocks gained up to 5% in today's trade after Union Finance Minister Nirmala Sitharaman, while presenting the interim budget for the fiscal year 2024-2025 in Parliament today (February 1), proposed to provide assistance for the installation of rooftop solar systems for 1 crore houses under the “Pradhanmantri Suryodaya Yojana.”

"Through rooftop solarization, one crore households will be enabled to obtain up to 300 units of free electricity every month. This scheme follows the resolve of the Hon’ble Prime Minister on the historic day of the consecration of Ram Mandir in Ayodhya," said Nirmala Sitharaman.

The proposed rooftop solar initiative in the budget is expected to bring about significant benefits for households. Finance Minister Nirmala Sitharaman highlighted that households could anticipate savings ranging from fifteen to eighteen thousand rupees annually. This would result from the generation of free solar electricity for personal use as well as the potential to sell surplus energy back to distribution companies.

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The initiative not only promotes sustainable energy practices but also offers financial relief to households, aligning with the government's commitment to fostering green and cost-effective solutions for citizens.

Against this backdrop, Suzlon Energy's shares hit 5% upper circuit limit in today's trading session, reaching ₹48.20 apiece. Simultaneously, Borosil Renewables, Waaree Renewable Technologies, Sterling Wilson Renewable Energy, and Tata Power all experienced notable gains, each rising over 2% in today's intraday trade.

India holds 4th position in the world for renewable energy installed capacity, including large hydro. It ranks fourth in both wind power capacity and solar power capacity.

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The country has set an ambitious goal of installing 500 GW of non-fossil fuel capacity by 2030, achieving net-zero emissions by 2070, and meeting 50% of its electricity needs from renewable energy sources by 2030, marking a momentous milestone in the global effort against climate change.

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