In a bid to make grama panchayats self-sufficient in energy generation, Finance Minister KN Balagopal on Thursday announced a scheme to promote community-level solar energy generation and storage in the 2026-27 state budget.
In this regard, a pilot project will be implemented at Perinjanam in Thrissur district, he said. The state budget also announced a new project to allocate ₹1 crore to each panchayat participating in the scheme. “Solar energy storage and distribution facilities will be set up,” Mr. Balagopal said. ₹2 crore is budgeted for 2026–27.
Allocation increased
The allocation for the power sector has been increased to ₹ 1309.84 crore in 2026-27. Of this, ₹1,238.8 crore is earmarked for the Kerala State Electricity Board (KSEB) for power sector development and ₹71.04 crore for non-conventional and renewable energy sources.
For the three projects – Battery Energy Storage Systems (BESS), smart meter installation and Pumped Station (PSP) projects – the budget allocated ₹ 5 crore, ₹ 31.22 crore and ₹ 5 crore respectively. Other major allocations include ₹7 crore for installation of solar power systems for remote tribal settlements and ₹7.18 crore for green hydrogen projects.
The budget also earmarked ₹9.36 crore for the Electrical Inspectorate to carry out electrical safety activities.
Published – 29 Jan 2026 20:39 IST
