Kerala Budget 2026-27: Community-level solar energy production and storage to be promoted

Finance Minister K.N. Balagopal on Thursday announced in the 2026-27 State Budget a scheme for promoting community-level solar energy production and storage in a bid to make grama panchayats self-sufficient in energy generation.

A pilot project will be implemented in Perinjanam in Thrissur district in this regard, he said. The State Budget also announced a new project for allocating ₹1 crore each to panchayats that take up this scheme. “Facilities for storage and distribution of solar energy will be created,” Mr. Balagopal said. For 2026-27, the Budget has earmarked ₹2 crore.

Allocation increased

The allocation for the power sector has been increased to ₹1309.84 crore in 2026-27. Out of this, ₹1,238.8 crore is set apart for the Kerala State Electricity Board (KSEB) for power sector development and ₹71.04 crore for non-conventional and renewable energy sources.

For three projects – Battery Energy Storage Systems (BESS), installation of smart meters and pumped storage projects (PSP) – the Budget has earmarked ₹5 crore, ₹31.22 crore and ₹5 crore respectively. Other major allocations include ₹7 crore for the installation of solar power systems for remote tribal settlements, and ₹7.18 crore for green hydrogen projects.

The Budget has also earmarked ₹9.36 crore for Electrical Inspectorate for implementing of electrical safety activities.