The union budget 2021 as a lot in store for the environment. Apart from clean air, Jal Jeewan Mission, Swachh Bharat 2.0, FM Sitharaman has put a lot of focus on solar energy sector.

The Union Budget for 2021-22 has provided an allocation of Rs 2,606 crore for the solar power sector, including both grid-interactive and off-grid projects. This equals to a 66.41 per cent increase over Rs 1,566 crore provided in the Revised Estimate for 2020-21.

The Budget has also provided for Central Financial Assistance for capacity addition of 7,500 megawatt of solar power in 2021-22.

“Implementation of Ph-III of the off-grid solar PV programme, which covers installation of 3 lakh solar street lights, distribution of 25 lakh solar study lamps and installation of solar power packs of total aggregated capacity of 100 MW. In addition, under AJAY Ph-II over three lakh solar street lights would be installed. Further 20MW projects of Concentrated Solar Thermal will be undertaken,” the Expenditure Budget document said.

The Budget proposes to provide a capital infusion of ₹1,000 crore to the Solar Energy Corporation of India and ₹1,500 crore to the Indian Renewable Energy Development Agency.

“To build up domestic capacity, we will notify a phased manufacturing plan for solar cells and solar panels. At present, to encourage domestic production, we are raising duty on solar inverters from 5% to 20%, and on solar lanterns from 5% to 15%,” Sitharaman said in her Budget speech.

Further, she announced a customs duty hike on solar inverters and lanterns which would have an impact on the rooftop, ground-mounted projects and distributed renewable energy sector.

“To encourage solar manufacturers, we are raising duty on solar inverters from 5 per cent to 20 per cent and on solar lanterns from 5 per cent to 15 per cent,” said Finance Minister Nirmala Sitharaman in her Budget speech.