Energy stocks saw a significant spike as Finance Minister Nirmala Sitharaman announced on Thursday around 1 crore households across the country will get free electricity up to 300 units under the new rooftop solar panel system scheme.
The announcement of the new solar energy scheme led to energy stocks rallying over 7 percent, with state-run Indian Renewable Energy Development Agency Limited (IREDA) being one of the top gainers of the day.
IREDA saw a major boost of 5 percent when it came to renewable energy stock, while other KPI Energy and Websol Energy seeing a spike of around 5 percent on Thursday. KPI shares jumped 7 percent, being the top gainer of the day.
Meanwhile, Suzlon Energy and Sterling and Wilson stocks rose 4% and 2%, respectively. Other strong performers on the stock market were Tata Power, Adani Green and NHPC, all rising by over one percent after the announcement.
Finance Minister Nirmala Sitharaman presented the interim Budget 2024 in the Parliament on Thursday. This is not the full budget for the upcoming fiscal year, and the complete budget will only be announced after the results of the 2024 Lok Sabha elections is declared and a new government is formed
All about Centre’s rooftop solar panel scheme
The solar scheme was first announced by Prime Minister Narendra Modi on January 22 after the consecration ceremony of the Ayodhya Ram Mandir. PM Modi said that rooftop solar panel systems will be fitted in 1 crore homes to take India one step closer to being self-reliant when it comes to energy.
FM Sitharaman on February 1 announced the details of the solar panel system scheme, saying that the Centre will enlist state-run power sector companies such as NTPC, NHPC, Power Grid and SJVN to educate and motivate households into adopting solar power.
During her Budget 2024 speech, the finance minister said, “Under the scheme, households can save up to ₹15,000-18,000 from free solar electricity. Discoms will also benefit from the selling surplus that will be available at their disposal.”
Resident consumers will have to install solar panels on their rooftop from one of the registered companies in their localities to be eligible for this subsidy, Sitharaman said. Companies will be designated to areas and localities to install solar panel systems on rooftops.