Weeks ahead of Budget 2026, renewable energy experts and policy analysts are urging the government to introduce stronger fiscal and policy measures to accelerate India’s clean energy transition and address emerging system-level challenges.
Over the past decade, India has made rapid progress in renewable capacity addition. Installed renewable energy capacity has grown from 76 GW in 2014 to over 226 GW by mid-2025, underscoring the scale of the transition already underway. However, industry leaders now argue that the next phase must focus on quality, resilience, and integration, rather than capacity alone.
Decentralised Renewables Seen as the Next Growth Engine
Calling for a sharper policy focus, Radhika Choudhary, Co-founder and Director, Freyr Energy, said the upcoming Budget should prioritise decentralised renewable energy, particularly distributed and rooftop solar. She noted that decentralised systems can strengthen grid resilience, reduce transmission losses, and improve energy access in semi-urban and rural regions. According to Choudhary, these solutions are well positioned to drive the next phase of renewable growth.
In addition, she advocated targeted incentives for battery storage, domestic solar manufacturing, and digital energy platforms. Measures such as interest subvention, simplified GST structures, and faster project approvals could significantly boost rooftop solar adoption, she added.
Policy Support Sought for Low-Carbon Technologies and Green Finance
Meanwhile, Bharath Jairaj, Executive Program Director, WRI India, emphasised the need for stronger policy and financial support to scale low-carbon technologies, especially in hard-to-abate sectors. He called for expanded tax credits, guarantees, and R&D funding, along with greater investments in Carbon Capture, Utilisation and Storage (CCUS) pilot projects, electrolyser manufacturing, technology transfer, and workforce skilling.
Jairaj also proposed the creation of a green bank or credit guarantee institution to mobilise capital for battery storage, green hydrogen, and industrial electrification. In parallel, he highlighted the importance of Just Transition Funds for coal-dependent regions to support an equitable energy transition.
Strengthening Domestic Supply Chains and Industrial Decarbonisation
Beyond finance, Jairaj urged policymakers to deploy pooled procurement funds to accelerate adoption of green steel and green cement, while also investing in critical minerals and solar village initiatives. He further recommended expanding the Production Linked Incentive (PLI) scheme to cover the entire solar value chain, a move he said would help reduce import dependence and strengthen domestic manufacturing.
Grid Reliability and Discom Reforms Take Centre Stage
Shifting focus from capacity addition to system performance, Akshay Hiranandani, CEO, Serentica Renewables, stressed that India’s renewable strategy must now prioritise grid reliability and market viability. He flagged the urgent need to fix discom finances, noting that weak balance sheets have stalled nearly 50 GW of Power Purchase Agreements (PPAs). Budgetary support, he said, is also essential to accelerate transmission expansion and grid modernisation, particularly through the deployment of advanced grid technologies.
Energy Storage as a Core Grid Asset
Hiranandani further argued that energy storage should be treated as a grid asset under the control of system operators. He highlighted Viability Gap Funding (VGF) for grid-connected battery systems as a critical requirement to scale storage capacity and enable round-the-clock renewable power integration.
From Capacity Growth to System Readiness
Collectively, industry voices ahead of Budget 2026 are calling for a shift in focus—from headline capacity numbers to system readiness, financial health, and decentralised deployment. Ad reported by knnindia.co.in, with targeted policy support, experts believe the upcoming Budget can play a pivotal role in strengthening India’s clean energy ecosystem while ensuring reliability, affordability, and long-term sustainability.
