Page 60 - Policy Economic Report_Feb'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

As of January 27, 2025, the scheme has already benefitted 8.46 lakh households through rooftop solar
installations. The rapid adoption of solar energy is evident in the tenfold increase in monthly installation
rates, which now stand at around 70,000 installations per month, significantly surpassing pre-scheme
levels. The scheme offers a subsidy of up to 40%, making renewable energy more affordable and
accessible. So far, ?4,308.66 crore has been disbursed as Central Financial Assistance (CFA) to 5.54 lakh
residential consumers, with an average subsidy of ?77,800 per household. Additionally, an
estimated 45% of the beneficiaries are now receiving zero electricity bills, depending on their solar power
generation and consumption patterns.

Key Benefits

• Free Electricity for Households: The scheme provides households with free electricity through the
installation of subsidized rooftop solar panels, significantly reducing their energy costs.

• Reduced Electricity Costs for the Government: By promoting the widespread use of solar power,
the scheme is expected to save the government an estimated ?75,000 crore annually in electricity
costs.

• Increased Use of Renewable Energy: The scheme encourages the adoption of renewable energy
sources, contributing to a more sustainable and environmentally friendly energy mix in India.

• Reduced Carbon Emissions: The transition to solar energy under this scheme will help lower
carbon emissions, supporting India's commitment to reducing its carbon footprint.

Mobilizing Finance is Key to Achieving 500 GW Renewable Energy by 2030: Union Minister Pralhad Joshi

Mobilising finance is key to achieving 500 GW Renewable Energy by 2030, said Union Minister for New &
Renewable Energy Shri Pralhad Joshi. He was addressing the National Workshop on Mobilizing Finance
for Renewable Energy organised by Union Ministry of New and Renewable Energy. Union Minister Joshi
also called for collective efforts from financial institutions and policymakers to ensure accessible funding
to Renewable Energy (RE) sector. The Minister along with the Minister of State, (MNRE), Shri Shripad Naik
also addressed a Press Conference held in conjunction with the Workshop.

Highlights of the Workshop

The Minister stated that the idea for the workshop emerged after a review meeting chaired by Prime
Minister Narendra Modi, where discussions focused on accelerating flagship schemes like PM Surya Ghar
and PM-KUSUM. Highlighting the scale of India’s energy needs, Shri Joshi said that as the country aims to
become the third-largest economy, its energy demand is expected to double. He stressed that renewable
energy must be scaled up to match thermal energy production, ensuring a reliable and resilient power
supply.

The Minister also spoke about India’s commitment to achieving Net Zero by 2070 and reaching 500 GW
of non-fossil fuel-based capacity by 2030. He called upon financial institutions to align their lending
policies with India’s renewable energy growth strategy and emphasized that carbon-intensive industries
will face reduced export opportunities in the future. Shri Joshi noted that India has already made
significant progress in renewable energy, with capacity increasing to 222 GW today. He pointed out that

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