India’s Renewable Energy Industry Seeks Budget 2026 Support for Reliable and Self-Sufficient Clean Power

India’s Renewable Energy Industry Seeks Budget 2026 Support for Reliable and Self-Sufficient Clean Power

January 29, 2026

As India prepares for the Union Budget 2026, the renewable energy sector has outlined clear expectations for policy and fiscal support that go beyond simply increasing installed capacity, urging focus on grid reliability, storage solutions, domestic manufacturing, and financing measures to build a dependable and self-reliant clean energy system. Industry stakeholders say the next budget must help bridge structural gaps that currently limit the effectiveness of renewable power growth.

While India has achieved strong progress in expanding renewable electricity generation and in policy reforms that have boosted capacity, many experts argue that intermittent generation from solar and wind needs backing from large-scale energy storage such as battery energy storage systems (BESS), pumped hydro, and technologies like green hydrogen to manage supply variability, balance demand, and enable round-the-clock clean power delivery. Without this support, high renewable penetration could strain the grid and reduce the reliability of the energy transition.

Another major concern for the sector is heavy reliance on imported components, including battery cells, electrolysers and advanced power electronics, which expose energy infrastructure development to global supply chain risks and foreign exchange volatility. Industry leaders are calling for stronger production-linked incentives, tax reductions on clean energy equipment, and long-term policy clarity to build a competitive domestic clean-tech manufacturing ecosystem that accelerates self-reliance.

Financing and regulatory certainty are also seen as crucial to sustaining investment momentum. High capital costs, delays in power purchase agreement (PPA) finalisation, and complex approval procedures have dampened investor confidence. The sector wants clearer assurances on outstanding contracts, improved access to green finance, priority sector lending status for renewable and storage projects, and extended or expanded waivers for transmission charges to support efficient power evacuation and grid integration.

Renewable energy executives emphasise that strengthened transmission networks and faster development of grid infrastructure will be essential for the next phase of growth, especially as India aims for deeper renewable integration alongside emerging technologies like green hydrogen. They argue that well-targeted budget measures—ranging from storage incentives to domestic supply chain support and smoother regulatory processes—can unlock fresh investment, create quality jobs, and help position India as a global leader in clean energy while ensuring energy security and sustainability.