As India prepares for the Union Budget 2026-27, the Ministry of New and Renewable Energy (MNRE) is seeking stronger policy support and financial backing to drive the next phase of the country’s clean energy transition. Officials and industry stakeholders want the Budget to go beyond capacity additions and focus on scaling domestic manufacturing, energy storage solutions, and emerging clean technologies such as green hydrogen, along with enhanced incentives for rooftop solar and distributed renewable energy systems.

Key Highlights

• Renewable energy ministry seeks higher Budget support for storage, green hydrogen, and domestic clean-tech manufacturing.
• Budget 2026 expected to accelerate India’s transition toward 500 GW non-fossil capacity by 2030.

In 2025, India made significant strides in renewable energy deployment, adding nearly 50 GW of capacity, mostly from solar and wind, with investments exceeding ₹2 lakh crore. Supporters say that maintaining this momentum in 2026 will require not only continued capital allocation but also streamlined regulations and measures that improve grid integration and project bankability. Strengthening localisation across the solar and storage value chain through targeted production-linked incentives and tariff rationalisation is high on the wish list.

Industry experts are also urging focus on decentralised renewable energy, such as rooftop solar and distributed energy systems, coupled with storage solutions that enhance grid resilience and reduce transmission losses—especially in semi-urban and rural India. Expanded access to affordable financing, tax incentives, and simplified procedural approvals are among other proposals aimed at accelerating private sector participation.

Also Read: Budget 2026: Customs Duty Reforms Top Industry Wish List

Renewable energy remains central to India’s long-term energy strategy, with the country targeting 500 GW of non-fossil fuel capacity by 2030. Achieving this will demand significant investment—estimated at over ₹30 lakh crore—and consistent policy support that bridges gaps in infrastructure, storage, and manufacturing competitiveness.

Budget 2026 expectations reflect a broader ambition to embed clean energy more deeply into India’s economic fabric, not just as a climate imperative but also as a driver of job creation, technology innovation, and export-ready manufacturing. Stakeholders hope that strategic incentives and fiscal support will unlock deeper domestic and international investment, reinforcing India’s position as a global clean-energy leader.