Budget 2026: ₹1,775cr allocated to solar power sector
What's the story
The Indian government has allocated ₹1,775 crore to the solar power (grid) sector in the Union Budget 2026. The move highlights India's commitment to renewable energy transition. In FY23-24, a total of ₹4,757 crore was allocated for this sector. The allocation for 2022-23 was ₹3,304 crore compared to ₹2,369 crore in 2021-22.In FY2025-26, a revised estimated of ₹1,000 crore was allocated.
Scheme impact
Government schemes to boost solar power generation
The Indian government has launched several schemes to boost solar power generation. These include the Solar Parks, Viability Gap Funding (VGF), Central Public Sector Undertaking (CPSU) scheme, Defense scheme, Canal bank & Canal top scheme, Bundling Scheme and Grid Connected Solar Rooftop Scheme. These initiatives have played a major role in India's impressive progress in solar power generation.
Scheme details
Solar park and viability gap funding (VGF) scheme
The Solar Park Scheme aims to promote large-scale solar power generation by developing parks across India. These parks provide ready infrastructure for developers, reducing the cost of setting up plants. Meanwhile, the Viability Gap Funding (VGF) scheme helps solar power developers bridge the financial gap between a project's actual cost and its commercially viable cost, making it easier for them to secure financing.
CPSU scheme
Central Public Sector Undertaking (CPSU) scheme
The Central Public Sector Undertaking (CPSU) scheme involves public sector companies setting up solar power projects. This initiative has greatly contributed to India's renewable energy targets. The country has recently overtaken Japan to become the third-largest producer of solar energy in the world, a testament to its commitment toward sustainable development and energy security through renewable sources such as solar power.