Solar Stocks Surge as FM Proposes Rooftop Solar Support For 1 cr Homes

Tanushree Jaiswal Tanushree Jaiswal 2nd February 2024 - 10:23 am
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Shares of solar related stocks surged by up to 5% today following the announcement by Union Finance Minister Nirmala Sitharaman. During the presentation of the interim budget for the fiscal year 2024-2025, she unveiled the "Pradhanmantri Suryodaya Yojana," proposing assistance for installing rooftop solar systems in 1 crore households.

Under the initiative, rooftop solarization aims to provide up to 300 units of free electricity every month to one crore households. Finance Minister Sitharaman emphasized that this move aligns with the Prime Minister's commitment, coinciding with the consecration of the Ram Mandir in Ayodhya. The proposed scheme is poised to bring benefits to households.

Financial Benefits for Households

Households are expected to save around fifteen to eighteen thousand rupees each year because they can use free solar power for their needs. Additionally, if they produce more solar energy than they need, they can sell the extra to the power companies. This not only helps people save money but also aligns with the government's goal of encouraging eco-friendly and affordable solutions for the public.

In response to this visionary announcement, solar energy stocks gains in today's trading session. Suzlon Energy shares hit the 5% upper circuit limit, reaching ₹48.20. Other key players like Borosil Renewables, Waaree Renewable Technologies, Sterling Wilson Renewable Energy and Tata Power also saw substantial increases, each rising over 2% in today's intraday trade. Today, the stock market showed some mixed trends.  NIFTY 50 ended at 21,697.45, slightly down by 0.13%. On a positive note, Nifty Bank closed higher at 46,188.65, up by 0.42%. And SENSEX, finished at 71,645.30, with a small decrease of 0.15%.

India's Global Renewable Energy Standing

India currently holds the fourth position globally for renewable energy installed capacity, including large hydro. It ranks fourth in both wind power and solar power capacity. The nation has set ambitious goals, aiming to install 500 GW of non-fossil fuel capacity by 2030, achieve net-zero emissions by 2070, and meet 50% of its electricity needs from renewable sources by 2030. This commitment marks a milestone in the global fight against climate change.

Final Words

India's bold steps towards a sustainable and green future are not only gaining traction in the stock market but also reinforcing the country's position as a key player in the global renewable energy landscape.

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