FEBRUARY 20258GOVT FY26 BUDGET DRIVES SOLAR SECTOR GROWTH WITH INCREASED SUPPORTINDIA AND UK COLLABORATE TO ESTABLISH GLOBAL STANDARDS FOR CLEAN HYDROGENThe Indian government has reinforced its commitment to renewable energy in the FY26 Budget, allocating Rs 242 billion to the solar sector--marking a 60 percent year-on-year (YoY) increase, according to a report The Bureau of Indian Standards (BIS) marked a pivotal moment in propelling the green hydrogen sector ahead by hosting the first-of-its-kind, two-day workshop on standardizing green hydrogen production and regulation in New Delhi. The collaboration between BIS, the TOP STORIESBritish Standards Institution (BSI), and the UK's Foreign, Commonwealth, and Development Office (FCDO) will shape the emerging hydrogen economy of the future."India and the UK have a shared ambition to become leaders in green hydrogen, supporting the goal of a net zero future," said Abbey Dorian, Energy Sector Lead at BSI, emphasizing the significance of this collaboration in advancing sustainable energy. The workshop is a crucial component of the UK government's Standards Partnership program, aimed at driving growth and boosting trade by adopting international standards in India.The sessions delved into critical issues such as developing safe, scalable, and globally harmonized Regulations, Codes, and Standards (RCS), focusing on fast-tracking Publicly Available Specification (PAS) standards and creating a global hydrogen certification framework.Aligned with India's National Green Hydrogen Mission, the workshop is expected to help identify gaps in standardization while facilitating collaboration between global experts. Strengthening India's certification, testing, and standardization capabilities will play a key role in developing a competitive green hydrogen market. The event was inaugurated by Rajiv Sharma, Deputy Director General (Standardisation-I), BIS; Laura Aylett, Head of Climate and Energy (British High Commission); and Abbey Dorian. by Jefferies. This substantial push focuses on expanding rooftop solar installations and solar pump schemes to enhance energy accessibility.Jefferies highlighted, "FY26 budget gives a continued push to solar sector and saw the extension of flagship schemes of solar rooftop, solar pumps, with budget allocations rising 3.2x and 1.7x vs FY25 budget estimates."A key highlight is the PM Surya Ghar Muft Bijli Yojana, which aims to install 10 million residential solar rooftops. The scheme's allocation has surged by 80 percent to Rs 200 billion for FY26, compared to the revised estimate for FY25. Initially approved on February 29, 2024, the scheme carries a total outlay of Rs 750 billion through FY27, offering up to 60 percent subsidy for solar systems.The PM-KUSUM scheme, focused on solar-powered pumps for farmers, has also seen a budgetary rise to Rs 26 billion from Rs 15 billion in FY25, reinforcing efforts to integrate solar energy into agriculture. The National Manufacturing Mission is also expected to bolster domestic solar equipment production. However, Jefferies pointed out the absence of clarity on incentives for battery energy storage systems, a critical factor in renewable energy integration.The increased allocations signal India's strong push towards clean energy, setting the stage for an accelerated transition to sustainable power solutions.
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