Budget 2025: Waaree Energies, Premier Energies shares in focus today; here's why

Budget 2025: To achieve the government’s target of 500 GW of renewable energy capacity by 2030, market analysts said a boost is likely for the renewable sector in the Union Budget 2025 today. Announcements towards the extension of the PLI scheme for solar energy value chain, increased allocation towards rooftop solar (PM Suryaghar Yojana), expanding or modernising the transmission grid infrastructure and increasing allocation for smart metering infrastructure will be the key feature, analysts.

Besides, announcements towards trade barriers, such as additional BCD or anti-dumping duties on solar components, will be keenly eyed. The focus will be on non-trade barriers such as ALMM and whether to include solar panel supply chain components like Ingots and Wafers in the ALMM scheme.

"A push for renewables – government’s PM Surya Ghar Yojana can drive a Rs 1.2 lakh crore rooftop solar ecosystem," said Emkay Global. It believes Premier Energies Ltd and Waaree Energies Ltd to be key beneficiaries of Budget announcements.

Axis Securities said the focus will also be on announcements about energy storage solutions (ESS) like pumped hydro storage projects and battery energy storage systems (BESS). It sees likely Budget announcements to be positive for Waaree Energies Ltd, Premier Energies Ltd and Inox Wind Ltd, among other players .

The Economic Survey released on Friday noted that India has low production capacity in the solar energy sector for key components like polysilicon, ingots, and wafers. The production capacity of monocrystalline silicon ingot is expected to quintuple by 2025 from 2 GW in 2023, but it won’t be enough to meet the demand in the country.

"Several solar equipment manufacturers in the country significantly depend on Chinese supply chains and related services. The single-source concentration risk in several product areas exposes India to potential supply chain disruptions, price fluctuations and currency risks. India’s task is cut out," it noted.

"It means going all out to attract, promote and facilitate further domestic and foreign investments that India needs to become a competitive and innovative economy. It will not be easy because competition for investment is not only with other emerging economies but advanced economies, too, who are determined to keep their businesses at home."

The Economic Survey suggested that investing in and strengthening domestic supply-chain capability and resilience will be the hallmarks of strategic and long-term thinking on the part of the private sector. Alternative sources of supply, where possible, have to be located and nurtured, going beyond short-term cost considerations, it said.

A projection of the installed capacity in 2030 shows that the share of renewable energy, especially solar and wind, in the installed capacity is likely to increase substantially. In contrast, the share of Coal and Lignite is likely to fall sharply.