Renewable Energy Sector Urges Government to Back Storage and Financing in Budget 2026

Renewable Energy Sector Urges Government to Back Storage and Financing in Budget 2026

January 12, 2026

 India’s renewable energy industry has appealed to the government to include stronger financial support and incentives in the forthcoming Union Budget 2026 to help overcome key challenges in energy storage, project funding, grid strengthening and domestic manufacturing. Industry leaders emphasized that targeted fiscal measures are essential to sustain growth in clean energy capacity and improve long-term project viability. 

Representatives from major renewable and clean technology firms have called for incentives such as tax breaks, production linked support and viability gap funding in the Budget to attract investment in green hydrogen, battery energy storage systems (BESS) and modern grid infrastructure. They said these steps are crucial to support energy security and keep India on track with its climate and renewable targets. Senior executives highlighted the need to rationalize Goods and Services Tax (GST) and other levies on battery storage components and related equipment to make projects more bankable and affordable. They also stressed the importance of fiscal incentives for domestic manufacturing of solar, power equipment and emerging clean-tech technologies to reduce dependence on imports and boost local industry. Industry stakeholders pointed to growing bottlenecks in transmission network readiness and payment security mechanisms, urging the government to design Budget provisions that address these structural hurdles. There were also calls for a clear climate financing framework and incentives tied to carbon markets to help mobilize private sector capital for mitigation and adaptation initiatives.

As India prepares to expand its renewable capacity rapidly with expectations of significant additions in solar, wind and hybrid projects the sector says enhanced fiscal support in Budget 2026 will be key to achieving reliable, cost-effective clean energy deployment and meeting long-term sustainability goals.