Since the announcement of Budget 2025, India has made notable strides in advancing sustainability and building climate resilience, underscoring the nation’s strong commitment to achieving net-zero carbon emissions by 2070 while fostering sustainable and inclusive development. With an ambitious target of 500 GW of non-fossil fuel capacity by 2030, the government’s initiatives have driven significant growth in renewable energy projects. Increased investments in renewable energy infrastructure, including grid modernisation and advanced storage solutions, are poised to establish a more resilient and sustainable energy ecosystem. As the union budget for 2026-27 approaches, anticipation is building across the renewable energy sector, with stakeholders eager to see how the government will expand on clean energy initiatives to accelerate the transition towards a sustainable and climate-resilient future. Industry experts share their Budget 2026 expectations for the clean energy sector…
Raj Agarwal, Managing Director and CEO, Genus Power Infrastructures Ltd
“Smart metering is emerging as one of the most important building blocks of India’s power sector reform. As millions of meters are deployed under national programmes, the real opportunity lies in how effectively data is used to drive transparency, efficiency, and trust with consumers. The upcoming Budget can play a catalytic role by enabling discoms to invest in digital analytics, consumer engagement platforms, and modern grid operations alongside physical infrastructure. At the same time, continued focus on locally manufactured, high-quality smart meters will be critical to sustaining scale and reliability. When implemented thoughtfully, smart metering can transform the relationship between utilities and consumers while strengthening the financial and operational resilience of India’s electricity ecosystem.”
Amod Anand, Co-Founder and Director, Loom Solar
“The expectations are centered on closing structural gaps in the entire end-to-end solar and green energy value chain. Solar manufacturers are looking for targeted support for upstream integration including incentives for polysilicon, ingots, and wafers – along with rationalisation of duties on critical raw materials and resolution of the goods and service tax (GST) inverted duty structure to ease working-capital pressure. There is also a strong expectation for low-cost green finance, research and development (R&D) incentives for advanced cell technologies, and stronger policy support for C&I solar, storage, and grid infrastructure to ensure demand stability and minimise curtailment risks. Together, these measures would align near-term industry sustainability with India’s long-term clean energy and manufacturing goals.”
Dr. Avishek Kumar, Founder, Sunkonnect and Global climate tech entrepreneur
“The upcoming Union Budget must prioritise scaling local manufacturing for battery energy storage systems (BESS), which is critical for grid stability and unlocking the next phase of renewable deployment. Clear, long-term fiscal incentives and tender visibility for BESS, alongside targeted support for recycling infrastructure for solar panels and batteries, will help establish a robust circular economy and reduce import dependence. We also urge continued reforms in green financing, policy consistency, and execution predictability to encourage investment.”
Avnish Bagaria, Co-Founder, NavPrakriti
“This year’s Union Budget is expected to take the next big step. The Union Budget 2026-27 needs to address this head-on. Our biggest task is meaningful GST reform, reducing tax rates on battery recycling services and recycled battery products to make the circular economy financially sensible, not just environmentally correct. Right now, it’s cheaper to dump batteries than recycle them, which is absurd. We need tax incentives for setting up recycling infrastructure, subsidies for collection networks, and policies that favor recycled materials in new battery manufacturing. Extended producer responsibility must come with real accountability, not just paperwork.”
Rohit Chandra, Co-Founder and CEO, OMC Power
“The next big opportunity lies in accelerating adoption at the point of consumption where energy meets impact. This means empowering industries, institutions, and communities to generate and consume clean power locally, reducing dependence on centralised grids and fossil fuels.
The Union Budget can play a catalytic role in driving this transformation. Enabling access to affordable, long-term green finance will be critical for scaling distributed solar and hybrid systems. We also expect a strong policy signal that positions on-site solar, especially rooftop installations, as a core pillar of India’s energy transition. Encouraging faster uptake across micro, small, and medium enterprises (MSMEs), healthcare facilities, telecom networks, and public infrastructure will unlock resilience, cost efficiency, and sustainability at scale. Support for solar-plus-storage, hybrid renewable systems, and credible carbon monetisation frameworks can transform clean energy from a sustainability choice into an operational imperative. Specifically, we look forward to dedicated financing mechanisms for distributed solar projects, priority lending status for green energy, and incentives for high-quality equipment and storage integration to ensure longevity and performance.”
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar
“Budget 2026 must take an integrated approach- strengthening energy storage obligations through fiscal incentives, extending production linked incentive (PLI) coverage to future-ready technologies and critical minerals, and supporting digital energy platforms to manage demand efficiently, ease grid stress, and unlock new value streams for both producers and consumers. Further, it is critical to invest in skill development for the clean energy ecosystem, including enhanced funding for solar manufacturing skill programmes and the integration of specialised solar curricula across technical institutes and ITIs, to ensure workforce readiness keeps pace with rapid capacity expansion. Equally important is the rationalisation of special economic zone-domestic tariff area norms, specifically removing customs duty on value addition. It is long overdue and essential to restore competitiveness, support manufacturers navigating global trade disruptions, and ensure India’s clean energy manufacturing ambitions remain export-oriented and resilient.”
Radhika Choudary, Co-founder and Director, Freyr Energy
“As India moves closer to its net-zero commitments and ambitious rooftop solar targets, the upcoming Union Budget presents a critical opportunity to accelerate decentralised clean energy adoption. We hope to see continued policy support for rooftop solar through stable incentives, simplified GST structures, and enhanced financing mechanisms that make solar more accessible for households and MSME. Strengthening the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY) with faster subsidy disbursements and broader awareness initiatives will be key to driving last-mile adoption. Additionally, budgetary support for domestic manufacturing, innovation-led technologies, and digital platforms can significantly improve system quality, performance monitoring, and long-term reliability.
From an industry perspective, easier access to low-interest green financing, especially for residential and rural consumers, will be a game-changer. The focus should also extend to skilling, grid modernisation, and storage solutions to support the next phase of renewable growth. With the right policy push, the Union Budget can further empower consumers, create green jobs, and reinforce India’s leadership in the global clean energy transition.”
Sanjay Choudhari, Chairman, SBL Energy
“The forthcoming Union Budget 2026 calls for a transformative opportunity to substantially boost India’s infrastructure and mining sectors. We strongly anticipate strong initiatives that indicate significant capital investment into large-scale projects, incentivise the adoption of innovative green technology, and rationalise duties on critical materials to reduce cost constraints. Besides this, streamlined regulatory frameworks, like single-window approvals, are critical for promoting ease of doing business and unlocking private investment. Such forward-thinking changes would spur innovation, boost global competitiveness, and establish India as a leader in long-term industrial growth.”
Rupal Gupta, Founder, Managing Director and CEO, TrueRE Oriana Power
“As India enters the next phase of its clean energy transition, the forthcoming Budget is an opportunity to create long-term stability and unlock the next wave of investments in renewables. I believe purpose-built financial mechanisms, such as a dedicated renewable energy fund, a separate budget line under MSMEs or Startup India for non-rated but high-potential companies, and a clear policy framework enabling direct partnerships between public sector undertakings and private developers beyond traditional tenders will help accelerate the energy transition.
A government-backed risk mitigation framework would also go a long way in addressing payment delays and market uncertainties, while boosting investor confidence. Sustained support for R&D across renewable technologies, storage, and grid integration can also help drive innovation and cost competitiveness. Finally, scaling green hydrogen through targeted funding, mandates, and viability gap funding (VGF) support can accelerate adoption in hard-to-abate sectors. Together, these measures can strengthen India’s renewable energy ecosystem and reinforce its global clean energy leadership.”
Akshay Hiranandani, CEO, Serentica Renewables
“As we step into 2026, the focus must shift grid integration and reliability. For renewables to compete effectively with thermal power, sustained policy and budgetary support must be complemented by targeted budgetary support for grid capacity building. Grid India, as the custodian of grid operations, needs advanced tools and technologies to manage rising renewable penetration. Investments in STATCOMs, grid-forming inverters, dynamic line rating and grid-forming batteries will be critical to enhance power flows in high renewable zones while preserving system resilience.
Energy storage will be central to the next phase. From an operational standpoint, the intermittency of renewables requires batteries to be deployed as grid assets, not just as commercial storage projects. Sudden wind gusts or cloud cover can cause sharp, large-area generation swings, requiring fast responding resources to stabilise the system. Battery systems under Grid India’s control can support frequency regulation, manage ramping requirements and meet evening peak demand. To enable this at scale, VGF for grid-connected battery assets will be essential.”
Srivatsan Iyer, Global CEO, Hero Future Energies
“As India enters the next phase of its energy transition in 2026, the priority must shift from capacity addition alone to building a dispatchable and resilient energy system which requires focused investments in new areas of energy storage, transmission infrastructure and a diversified clean energy mix. To further strengthen this sector, the upcoming Union Budget must announce additional measures aligned with India’s climate commitments and global competitiveness. Priority should be given to incentivising investments in green hydrogen, grid-scale energy storage, modernisation of transmission infrastructure, and introducing targeted PLIs or tax incentives to enhance energy security and build alternative material ecosystems. Together, these steps can reduce risk, improve grid reliability, and enable renewables to scale in a more efficient and commercially sustainable manner.”
Devansh Jain, Executive Director, INOXGFL Group
“Our expectation is that the focus on clean energy remains positive, especially around increasing transmission capacity, enabling grid flexibility, storage, and resolving ongoing issues, leading to capacity addition growth required to achieve our 2030 target of 500 GW of installed renewable capacity. Our ambition remains unchanged: to contribute meaningfully to India’s sustainable and self-reliant energy future.”
Prashant Mathur, CEO, Saatvik Green Energy Limited
“The Indian solar industry is at the threshold of a quantum leap from 135 GW capacity in 2025 to over 300 GW by 2030, making it the single largest contributor to India’s ambitious 500 GW non-fossil fuel energy target. We strongly advocate for an enhanced PLI scheme specifically for polysilicon, ingot, and wafer manufacturing. This targeted approach will enable India to rapidly establish critical upstream capabilities and reduce our heavy dependence on imports, particularly from China, which controls over 80 per cent of global solar manufacturing. Beyond PLI, we urge the government to introduce accelerated depreciation benefits for solar manufacturing equipment, similar to those provided for solar projects, which will significantly improve capital efficiency and returns. Additionally, reduced corporate tax rates for solar manufacturers and preferential lending rates through priority sector lending would enhance competitiveness and attract greater investments.”
Shreya Mishra, CEO, SolarSquare
“In 2023, India announced a subsidy scheme to solarise 10 million homes, out of which 3 million homes are expected to be covered by March 2026. My hope with this Budget is that the subsidy is extended to another 5 million to 10 million homes – this time for solar paired with batteries. This would be transformative in making India energy-independent and help the country move away from free electricity politics, towards a more sustainable model where people make their own free electricity.”
Ayush Misra, Co-Founder and CEO, AmpereHour Energy
“As we look ahead to the Union Budget for FY 2026, we expect a strong policy signal reinforcing India’s commitment to a resilient, secure, and clean energy future. With BESS and advanced energy management system emerging as the backbone of a flexible power grid, targeted incentives to reduce upfront capital costs will be critical to accelerating energy storage deployment and enabling this transition. We are optimistic about stronger support for both BESS developers and domestic energy storage manufacturers. Continued VGF is essential to scale projects during this early phase, while a clear, phased roadmap on manufacturing incentives and import duties for battery packs and containers will build investor confidence, ensure competitiveness of local manufacturing, and unlock private capex into domestic facilities.
With the battery supply chain heavily concentrated in China and prices already rising, BESS projects face near-term volatility. Over the long term, India must prioritise battery manufacturing self-sufficiency through clear duty structures and sustained manufacturing incentives to ensure energy security. New-age sectors like BESS and electric vehicles require sustained R&D investment, yet current corporate spending is insufficient. Government-led tax incentives and R&D grants can accelerate innovation and strengthen academia–industry collaboration.”
Neerav Nanavaty, CEO, BluPine Energy
“India’s renewable energy sector delivered a strong step-up in 2025, with accelerated wind and solar additions taking total installed renewable capacity beyond 247 GW. This progress reflects sharper execution across land acquisition, right of way, permitting, and grid-linked infrastructure, supported by improving centre–state coordination. The recent pre-budget consultations have further underlined a clear policy intent to strengthen infrastructure, enable equitable funding, and sustain long-term growth. As capacity continues to scale, focused investments in transmission and evacuation infrastructure will help maintain momentum. Strategic grid expansion, hybrid project configurations, and the increasing deployment of BESS are enhancing reliability and dispatchability. Along with faster conversion of bids into power purchase agreements and power sale agreements, these developments are boosting investor confidence and positioning India’s renewable ecosystem for resilient, infrastructure-ready growth through 2026 and beyond.”
Surbhi Puri, Director, Green Power International
“The year 2025 was significant in India’s journey to achieve Net Zero carbon emissions by 2070 while fostering sustainable and inclusive development. This year, we took some active measures to make India a Green Hydrogen hub and accelerate the transition to renewable energy. From the upcoming budget, we expect to strengthen these efforts through targeted support for research and development, skilling of the workforce, and incentives for domestic manufacturing. Additionally, the upcoming Union Budget should look at addressing the compressed biogas potential and installed capacity gap.
Further reduction in customs duty on imported machinery would help lower overall project costs and accelerate the deployment of advanced technologies that support the transition to lower carbon emissions across the sector. In addition, establishing a single-window clearance framework for the installation of gensets, by integrating applicable environmental, electrical, and local authority approvals, would significantly reduce project lead times and compliance burdens for investors.”
Yashodhan Ramteke, CEO, EcoGuard
“From 2026 onward, carbon intensity will increasingly function as a trade parameter rather than a sustainability disclosure, particularly with mechanisms like the EU’s Carbon Border Adjustment Mechanism (CBAM) coming into force. For Indian exporters, competitiveness will depend on the ability to provide granular, verified emissions data with clear audit trails that link carbon performance to physical goods. A well-structured domestic carbon pricing and measurement ecosystem can soften CBAM exposure, reduce the risk of double taxation, and help Indian industry compete in carbon-constrained markets. Policymakers should focus on alignment. India’s carbon market architecture must meet global standards for verification and traceability so that decarbonisation becomes a trade advantage instead of a trade barrier.”
Sunil Rathi, Executive Director, Waaree Energies Limited
“Policies must strengthen three core pillars. First, deeper support for vertically integrated manufacturing – spanning solar, batteries, and energy management systems – to build resilient domestic supply chains and reduce import dependence. Second, an expanded and more flexible viability framework that enables large-scale deployment of storage, particularly when integrated with solar and hybrid projects. And third, a sharper focus on domestic value addition that catalyses skilled employment and long-term manufacturing competitiveness.”
Anil Rawal, Managing Director and CEO, IntelliSmart Infrastructure
“Smart meters are catalysts for India’s digital transformation journey towards the $5 trillion economy. Advanced Metering Infrastructure (AMI), therefore, deserves a formal recognition under the Harmonized Master List of Infrastructure. Being one of the largest digital infrastructure projects in the country with about $ 30 billion project outlay, smart meter AMI is no longer an auxiliary component of electricity distribution; it is the digital backbone that enables loss reduction, seamless renewable integration, optimises demand-side management and delivers consumer-centric services that modern India demands.
This inclusion will unlock transformative benefits such as long-term, low-cost capital through priority sector lending, infrastructure bonds, InVITs, and global institutional investors, while providing critical regulatory clarity for lenders and developers navigating this evolving landscape. Additionally, it will eliminate existing ambiguities, accelerate the Revamped Distribution Sector Scheme (RDSS) implementation, and reinforce India’s transition toward a resilient, data-driven and sustainable power ecosystem. This is not just about infrastructure classification; it’s about empowering India’s energy independence and securing our digital future.”
Vinay Rustagi, Chief Business Officer, Premier Energies
“The renewable sector has been a major priority area for the government and we expect more favourable announcements supporting the sector in this budget. The two signature schemes, PMSGMBY and Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM) are expected to ramp up significantly and should get much higher budgetary allocation. We are also expecting rollout of the PM KUSUM 2.0 scheme with higher targets and incentives. Other focus areas should be incentive packages for R&D as well as local manufacturing of ingots and wafers to improve self-sufficiency for solar module manufacturing. As the battery storage segment is becoming critical for the power sector, we also expect favourable moves in relation to indirect taxes and import tariffs for the same.”
CA Baratam Satyanarayana, CFO and Director, Bondada Group
“As India prepares for Budget 2026, the clean-energy ecosystem is at an inflection point. For EPC players operating across renewable energy, and emerging storage solutions, the focus now must shift from capacity creation to execution certainty. We are looking for a budget that strengthens grid infrastructure, accelerates utility-scale renewable deployment, and provides clear policy support for BESS, which are critical to balancing intermittent power and improving project bankability. A stable policy framework, faster approvals, and improved access to long-term financing will enable EPC companies to scale efficiently, deliver projects on time.”
Debmalya Sen, President, India Energy Storage Alliance
“We urge the government to prioritise budgetary allocations for building a robust and sustainable battery supply chain that anchors advanced manufacturing within India. We recommend dedicated funding, such as Rs 10 billion Battery Pack Manufacturing and System Integration Support Scheme and up to 50 per cent fiscal support for critical mineral refining, to localise battery production and reduce import dependence.
To future-proof our sector, we seek Rs 3 billion allocation for National BESS Testing and Safety Centers, Rs 2 billion for pack-level testing, and expanded R&D funding targeting next-generation chemistries beyond lithium-ion, including sodium-ion and solid-state batteries. We strongly advocate for GST reduction from 18 per cent to 5 per cent on key components, batteries, motors, controllers, and battery scrap, as well as lower customs duties on cell-active materials and recycling equipment to boost affordability and enable greater participation across the supply chain. The reinstatement of income tax deductions on EV loans and 100 per cent accelerated depreciation for electric trucks will further catalyse adoption.”
Simarpreet Singh, Executive Director and CEO, Hartek Group
“As India looks to Budget 2026, the priority must move beyond capacity creation to building a grid that can actually store, transmit and balance renewable energy at scale. Budget 2026 must recognise grid strength, energy storage, skilled manpower and domestic manufacturing as strategic enablers of India’s energy transition, not peripheral add-ons. Only then can renewable scale translate into stable, bankable and sustainable outcomes. The Budget must respond with decisive investments in grid modernisation.
There is a pressing need to accelerate funding for smart grids, flexible transmission networks, high voltage direct current (HVDC) corridors, and extra-high-voltage and GIS substations. Equally important is long-term capability building. Budget 2026 should significantly scale up R&D investments, technology incubators and academic–industry collaboration across renewables, energy storage and grid automation, while introducing focused skilling programmes for high-voltage systems, HVDC, automation and project execution. Execution quality is increasingly constrained by workforce readiness, and this gap must be addressed urgently.
On the manufacturing front, extending PLI schemes across the entire solar value chain and key grid equipment will reduce import dependence and strengthen India’s energy security. Optimising flagship schemes such as PMSGMBY and PM-KUSUM, along with new green finance instruments like sovereign green bonds and climate-focused funds, can further accelerate adoption while attracting long-term capital.”
Vinay Thadani, Director and CEO, GREW Solar
“As India enters a phase of large-scale renewable deployment, Budget 2026 needs to move beyond a sole focus on capacity addition and pay closer attention to the ecosystem that supports sustained growth. While Budget 2025 increased allocations to the renewable sector through higher Ministry of New and Renewable Energy (MNRE) funding, initiatives such as PMSGMBY and PM-KUSUM, and continued support for green energy corridors and distribution reforms, some gaps remain. Access to long-term, affordable financing for manufacturing and project development is still limited, particularly for emerging players. In addition, more stable and predictable policy frameworks around tariffs, incentives and project contracts would help improve investor confidence. Addressing these areas in the next budget would strengthen the foundations of India’s renewable energy growth and support a more reliable transition at scale.”
Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group
“As we look ahead to the Union Budget 2026, the renewable energy sector anticipates measures that streamline regulatory approvals and land acquisition processes for large-scale projects. Enhanced budgetary support for transmission line development and evacuation infrastructure will be essential to align execution timelines with national targets. A policy focus on single-window clearances and dedicated transmission funding will support MNRE’s drive towards 500 GW by 2030, bridging existing gaps in connectivity and infrastructure planning.”
Vinayak Walimbe, Managing Director, Customized Energy Solutions
“As India accelerates its transition to clean mobility and advanced energy solutions, the Union Budget 2026–27 must prioritise the entire battery ecosystem, from upstream materials to cell and component manufacturing to entire BESS to support grid stability and sustainable growth. Reducing GST on crucial components, extending fiscal support for battery manufacturing, and facilitating low-interest finance will be key to building a globally competitive storage sector. Expanding incentives whether production linked or capital subsidies to include cell-active materials, component manufacturing and enabling brownfield projects can further strengthen domestic manufacturing. Robust policy incentives for recycling, such as lower GST on battery scrap and accelerated depreciation for recycling plants, will help formalise the supply chain and ensure resource security. We also urge dedicated funding for R&D and testing infrastructure to foster innovation and safety in next-generation storage technologies.”
Conclusion
The expectations from Union Budget 2026 underscore a clear message: India’s renewable energy journey now demands depth, resilience, and coordination rather than expansion alone. Industry leaders are calling for stable policy frameworks, affordable long-term finance, strengthened transmission and storage infrastructure, and focused support for domestic manufacturing and emerging technologies such as green hydrogen and carbon markets. Equally critical is enabling decentralised energy adoption, accelerating rooftop solar and storage, and ensuring ease of doing business through regulatory reforms. If addressed cohesively, these measures can reinforce investor confidence, balance regional growth, and position clean energy not just as a climate imperative, but as a cornerstone of India’s economic competitiveness and energy security on the path to net zero by 2070.
