Budget 2026: What Indian Clean Energy Market Wants

The Union Finance Minister is set to present the Union Budget 2026 in Parliament shortly, amid heightened expectations from the clean energy sector. In recent years, the government has sought to accelerate India’s energy transition through measures such as budgetary support for the PM Surya Ghar scheme, customs duty provisions on imported solar glass, and funding for a range of green energy projects.

With the upcoming budget approaching, industry leaders across the renewable energy value chain have outlined their expectations, calling for policy continuity, targeted fiscal support, and measures to strengthen domestic manufacturing and deployment. The following are the key expectations shared by clean energy leaders with the media.

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"The upcoming Union Budget must announce additional measures aligned with India’s climate commitments and global competitiveness. Priority should be given to incentivizing investments in green hydrogen, grid-scale energy storage, modernization 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."

 Srivatsan Iyer, Global CEO, Hero Future Energies

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“As India advances towards its clean energy, manufacturing and green fuels ambitions, the Union Budget 2026–27 is a critical opportunity to remove structural cost distortions and create long-term investment certainty. On direct taxes, we strongly advocate zero income tax on dividends from renewable energy SPVs to their holding companies to enable efficient capital recycling and lower tariffs. Equally important is providing clarity that income earned during the construction period should be treated as capital receipt and reduced from project cost, which will significantly reduce litigation and improve ease of doing business.”

Vineet Mittal, Chairman, Avaada Group

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“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.”

Akshay Hiranandani, CEO, Serentica Renewables

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“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 battery energy storage systems are enhancing reliability and dispatchability. Along with faster conversion of bids into PPAs and PSAs, these developments are boosting investor confidence and positioning India’s renewable ecosystem for resilient, infrastructure-ready growth through 2026 and beyond.”

Neerav Nanavaty, CEO, BluPine Energy

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“This Union Budget, the manufacturing industry could genuinely benefit from this one change that could unlock the next phase of investment - reintroduction of 80% depreciation for new manufacturing facilities. There is no denying that Manufacturing is capital-intensive by nature. Whether it’s setting up new plants, upgrading machinery or investing in automation, companies need strong incentives to commit long-term capital.”

D.V. Manjunatha, Founder and CMD, Emmvee Photovoltaic Power Limited

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“As we look ahead — including to the upcoming Union Budget FY27 — 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. The opportunity ahead is significant, and we are preparing for it with humility in efforts, ambition in vision, and confidence in our people.”

Devansh Jain, Executive Director, INOXGFL Group

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“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.”

Simarpreet Singh, Executive Director & CEO of Hartek Group

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"As we move towards the Union Budget, there is a clear expectation for measures that can accelerate green lending at scale. The proposed establishment of a dedicated Green Finance Institution (GFI) can be a game-changer, offering credit guarantees, concessional finance, and securitisation support that substantially lower risks and borrowing costs. Along with targeted incentives for EVs, rooftop solar, and industrial decarbonisation, such institutional support can expand the green credit pipeline and help India stay aligned with its 2030 climate ambitions. The next phase of growth will depend on how effectively policy and finance converge to de-risk and scale sustainable investments across sectors.”

Govind Sankaranarayanan, Co-founder & COO, Ecofy

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“The renewable energy industry anticipates that Budget 2026 will introduce policy measures that enhance certainty and bankability for hybrid and round-the-clock power models. Key expectations

Include: Storage-linked procurement incentives to accelerate deployment of battery and pumped hydro storage solutions, streamlined open-access regulations to facilitate easier adoption of renewable energy by commercial and industrial consumers, enhanced access to affordable domestic capital through dedicated financing mechanisms and concessional funding structures.”

Manan Thakkar, Co-Founder & MD, Prozeal Green Energy Limited

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“We urge the government to prioritize budgetary allocations for building a robust and sustainable battery supply chain that anchors advanced manufacturing within India. We recommend dedicated funding, such as a ₹1,000 crore Battery Pack Manufacturing and System Integration Support Scheme and up to 50% fiscal support for critical mineral refining, to localize battery production and reduce import dependence.

Debmalya Sen, President, India Energy Storage Alliance (IESA)

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“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.”

Surbhi Puri, Director, Green Power International

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“India’s smart metering journey has reached a decisive stage. Large-scale rollouts are underway across states, and the focus must now shift from intent to execution quality. The upcoming Budget can strengthen this transition by supporting certified, reliable smart meters, resilient communication networks, and deeper integration with DISCOM operations. For utilities, smart metering is about far more than technology. It is about improving billing accuracy, reducing losses, and restoring financial discipline at the last mile. Equally important is continued encouragement for domestic manufacturing, which ensures consistency in quality and long-term supply security. A well-directed Budget push will help DISCOMs build stable, scalable systems that deliver measurable outcomes for the power sector.”

Jitendra Kumar Agarwal, Joint MD, Genus Power Infrastructures Ltd 

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"While generation capacity is scaling well and India is on track to achieve 500 GW of non-fossil fuel capacity by 2030, the real challenge and opportunity lies in modernising grids and distribution to make them intelligent, resilient, and financially sustainable. The future growth roadmap for India’s energy sector depends on digitally connecting generation, grids, and consumers, using real-time data, AI-driven forecasting, and digital twins to reduce losses, integrate renewables reliably, and plan demand proactively.”

Tarun Singh, VP and Market Leader India - AVEVA