What Did The Union Price range 2022 Have For the Solar Sector? – Rediscover the Solar with MYSUN
For the past few years, we at MYSUN have shared our views and insights into the Union budget and its impact on the solar industry in general. In case you missed it, here is the blog post detailing the impact of the 2021 Union budget on the industry. Traditionally, on February 1, the Minister of Finance took the floor and announced the budget for the 2022/23 financial year. The household spoke generally of the energy transition and the need to pay attention to climate change and a greener economy. The Finance Minister announced an allocation of INR 19,500 crore for a production-related incentive for domestic solar panel manufacturing. The finance minister announced: “To facilitate domestic manufacturing for the ambitious target of 280 GW (gigawatts) of installed solar capacity by 2030, an additional allocation of Rs. 19,500 for the PLI program to manufacture high-efficiency (solar) modules with a priority of full integrated production units for polysilicon into solar PV modules will be manufactured.” On the other hand, the budget is estimated at that MNR for 2022-23 for investments in SECI has been halved from INR 1,800 Cr from the previous financial year to less than INR 1,000 Cr. The government will also provide financial support for setting up distributed renewable energy projects in the border villages to support their electrification. The budget also provided for the introduction of government green bonds to finance public sector infrastructure projects. In addition to the direct impact, there is also a significant increase in road construction spending of around 56%, which will definitely boost connectivity and infrastructure, and enable faster freight movement across the country. As with most budgets, it will be interesting to see the detailed implementation plan and guidelines that are critical to the budget’s success. Overall, on paper, we appear to be well positioned for a green economy.