Tata Power Eyes 30% Revenue Boost From Solar Rooftop Business Amid Government's Green Push

Tata Power Co. expects its solar rooftop business' revenue to see a 30% year-on-year growth in fiscal 2025, with a push from the PM Surya Ghar: Muft Bijli Yojana, according to Chief Executive Officer and Managing Director Dr Praveen Sinha.

Tata Power reported its financial results for the September quarter on Wednesday. Its revenue decreased by 1% to Rs 15,247 crore year-on-year from Rs 15,442 crore in Q2 of last fiscal. Net profit (before exceptional items) jumped 51% YoY to Rs 1,533 crore versus Rs 1,017 crore in the year-ago period. 

The company's Q2 revenue from its solar rooftop segment stood at Rs 439 crore, while the total order book in the category was Rs 684 crore at the end of September quarter.

Talking to NDTV Profit about the solar rooftop business, Sinha said that the impact of government schemes and subsidies, expected from the fourth quarter of this year, will further push the segment's revenue.  

“You can see real results from the rooftop from Q4 onwards. Last year, we did something like Rs 2,300 crore, this year we are expecting a 30% increase on that,” he said.

He highlighted that the company is witnessing a strong customer demand in the segment, supported by PM Surya Ghar Yojana and other schemes that aim to promote the adaptation of solar energy. 

“We have been visiting markets across the country and the kind of interest we are seeing among consumers is phenomenal,” Sinha said.

Tata Power's clean and green energy vertical is set to contribute nearly 59% to its capacity after the completion of ongoing projects, the company said in its investor presentation.

Commenting on the announcement, the Tata Power CEO noted that the firm already has 6.4 GW of clean energy solutions and another 6.5 GW projects are under construction. This will push the total capacity of clean and green to around 13 GW.

“Our target is that by 2030, nearly 70% of our power generation capacity should be from clean energy. You will see more additions coming from our renewable space,” he said.

Shares of Tata Power jumped 4.17% to touch an intraday high of Rs 444.8 apiece on the NSE on Thursday. The stock was seen trading 3.68% higher at Rs 442.7 apiece on the NSE against the benchmark Nifty 50's dip of 0.48% at around 1:48 p.m.