Karnataka Budget 2026 Targets 3 GW Solar, 2 GWh BESS

The Karnataka government has unveiled its 2026–27 budget, placing a strong emphasis on decentralised energy systems, rural power sustainability, and renewable energy expansion. In the latest budget, Chief Minister of Karnataka, Siddaramaiah, allocated an amount toward supporting farmers. The latest budget extended Rs. 48,000 crore electricity subsidy to benefit 36 lakh farmers across the state.

A key highlight of the budget is the implementation of the ‘Anantha’ scheme, which aims to establish solar microgrids in all Gram Panchayats through a public-private partnership (PPP) model. The initiative is designed to make Gram Panchayats self-sufficient in paying their electricity bills while enabling them to generate an estimated 4,000 MW of electricity annually.

Other Provisions

Siddaramaiah also spoke about continuing with the state’s “Gruha Jyothi” scheme for the widespread adoption, across 1.74 crore consumers enrolled so far. The minister said that over the past three years, the government spent Rs. 28,000 crore on the scheme, with an additional Rs. 10,578 crore allocated for the current year.

Additionally, Siddaramaiah said the budget also supports Karnataka's goal to accelerate the agricultural power supply solarisation. Throhgh the the KUSUM-C scheme, the Karnataka plans to implement decentralised feeder solarisation projects with 2,777 MW capacity during the current year.

Building on this effort, Siddaramaiah spoke about the government rolling out a new initiative called the “Mukhya Mantri Saura Krishi Yojana”, structured along the KUSUM-C model. The programme will see the commissioning of solar power plants with a capacity of 3,000 MW at KPTCL sub-centres under the Renewable Energy Service Company (RESCO) model, with an estimated investment of Rs. 10,500 crore.

To strengthen the state’s transmission network, KPTCL established 100 new substations in 2025–26. The latest budget proposes the construction of another 100 substations in 2026–27 to support growing electricity demand and renewable energy integration.

BESS Segment

Recently, Karkataka has been witnessing a surge in the Energy storage tender and its also a major focus area. To further support this endeavour, the Karnataka government.

During 2025–26, a 1,000 MWh Battery Energy Storage System (BESS) was deployed across seven substations to support grid stability and manage peak load demand. The state now plans to expand storage capacity.

In 2026–27, an additional 2,000 MWh of BESS capacity will be installed at Huliyur, Pavagada, and Kushtagi substations at an estimated cost of Rs. 3,400 crore. To support the transition to electric mobility, Karnataka will establish 1,250 electric vehicle charging stations in public locations with assistance from Electricity Supply Companies (ESCOMs) under the PM-E Drive scheme. The project is estimated to cost Rs. 777 crore.

The government also aims to foster innovation in the clean energy sector. An incubation centre for renewable energy startups will be set up in collaboration with IIM Bangalore, the University of New South Wales (Australia), and IISc Bangalore at an estimated cost of Rs. 20 crore.

electricity subsidy scheme

Over the past three years, the government has allocated Rs. 48,000 crore under the free electricity subsidy scheme, benefiting 36 lakh IP sets and supporting 21 lakh farmers who form the backbone of the state’s agricultural sector. For the current year, Rs. 19,290 crore has been earmarked under this programme.

In the education sector, infrastructure upgrades are planned for KREIS residential schools. Facilities such as desks, benches, furniture, libraries, computer labs, science laboratories, beds and blankets, two-tier cots, solar water heaters, dining tables, CCTV systems, and other amenities will be provided at an estimated cost of Rs. 50 crore.

KUSUM-C: 2,777 MW To Be Implemented in 2026

The state continues its efforts to solarise irrigation pump sets under the KUSUM-C scheme, with projects totalling 2,777 MW scheduled for implementation during the current year.

In addition, rooftop solar installations will be deployed on 25 Regional Transport Offices, driving tracks, and automated testing stations with dedicated buildings. The project will be implemented at an estimated cost of Rs. 10 crore.

The state government will also establish 1,250 electric vehicle charging stations in public places with assistance from ESCOMs under the PM-E Drive scheme, at an estimated cost of Rs. 777 crore.

To support entrepreneurship in clean technologies, an incubation centre for renewable energy startups will be created in partnership with IIM Bangalore, the University of New South Wales, Australia, and IISc Bangalore at a cost of Rs. 20 crore.

Additionally, a rooftop solar project worth Rs. 10 crore will be implemented by installing solar systems on the rooftops of 25 Regional Transport Offices, driving tracks, and automated testing stations that have their own buildings.