Buy Suzlon Energy, FM proposes rooftop solar aid for 1 crore homes

In a significant development following the announcement of the interim budget for the fiscal year 2024-2025, solar-related stocks witnessed a notable surge, with shares gaining up to 5% in today's trading session. The surge was fueled by the proposal put forth by Union Finance Minister Nirmala Sitharaman, who outlined plans for the implementation of the "Pradhanmantri Suryodaya Yojana," a rooftop solar initiative aimed at aiding the installation of solar systems in one crore households.

Under this initiative, households stand to benefit from the generation of up to 300 units of free electricity every month through rooftop solarization. Finance Minister Sitharaman emphasized that this move aligns with the Prime Minister's vision, announced on the historic day of the consecration of Ram Mandir in Ayodhya. The proposal is anticipated to bring substantial savings to households, ranging from fifteen to eighteen thousand rupees annually.

The budget's emphasis on sustainable energy practices and financial relief for households has resonated positively in the stock market. Suzlon Energy experienced a surge, with its shares hitting the 5% upper circuit limit, reaching ₹48.20 apiece. Other solar-related stocks, including Borosil Renewables, Waaree Renewable Technologies, Sterling Wilson Renewable Energy, and Tata Power, also witnessed significant gains, each rising over 2% in today's intraday trade.

India, currently holding the fourth position globally in renewable energy installed capacity, aims to further bolster its standing by setting ambitious goals. The country is targeting the installation of 500 GW of non-fossil fuel capacity by 2030, aiming for net-zero emissions by 2070 and striving to meet 50% of its electricity needs from renewable sources by 2030. This aligns with global efforts against climate change, marking a pivotal milestone in India's commitment to green and sustainable solutions.

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