New Delhi: With Finance Minister Nirmala Sitharaman set to table the Union Budget for 2026-27 on February 1, renewable energy companies have urged the government to shift policy focus from headline capacity additions to execution certainty, grid readiness and domestic manufacturing.
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Industry stakeholders said sustained growth in renewables would hinge on policy clarity, financially sound utilities and bankable power purchase agreements (PPAs), along with targeted interventions for distributed solar, storage-linked solutions and hybrid systems.
Setting the context for the sector’s expectations, Dr Faruk G Patel, Founder, Chairman and Managing Director of KPI Green Energy, said India’s clean energy transition has entered a new phase of scale and economic opportunity.
“India’s renewable energy journey is transitioning into an era of innovation, scale, and economic opportunity. In 2025 alone, the country added around 48–50 GW of renewable capacity, backed by approx Rs 2 trillion in investments, taking its total non-fossil fuel capacity to about 262–263 GW, a remarkable momentum toward the 500 GW by 2030 target,” Patel said.
Looking ahead to the Budget, he added, “In the upcoming Budget 2026, we look forward to continued policy support that accelerates the deployment of hybrid energy systems, energy storage, and green hydrogen value chains.”
Patel also sought stronger incentives for domestic manufacturing and capital support mechanisms such as viability gap funding, saying these would sustain investor confidence, strengthen energy security and drive long-term economic growth.
The industry has sought incentives for research and development as well as for the manufacturing of ingots and wafers, as the sector looks to enhance self-sufficiency across the solar value chain.
Premier Energies Chief Business Officer Vinay Rustagi said renewable energy has been a priority area for the government, and the industry expects announcements supporting incentive packages for R&D and domestic manufacturing of ingots and wafers to strengthen solar module manufacturing capabilities.
Jakson Group Chairman Sameer Gupta said the FY27 Budget offers an opportunity to move the spotlight from capacity announcements to on-ground execution.
A clear policy push towards distributed energy adoption — especially rooftop solar and hybrid solutions for commercial and industrial consumers — would help decentralise generation, ease grid stress and accelerate the clean energy transition in a commercially viable way, he said.
According to OMC Power Chief Executive Officer Rohit Chandra, India’s clean energy journey has reached an inflection point, making access to affordable, long-term green finance critical for scaling distributed solar and hybrid systems.
He said support for credible carbon monetisation frameworks could play a transformational role in accelerating clean energy adoption.
Highlighting grid preparedness as a persistent challenge, Volks Energie Co-Founder and Chief Executive Officer Piyush Goyal called for a stronger push on transmission and grid modernisation.
He said funding support for inter-state transmission systems, digital grid management and forecasting infrastructure would help ensure reliable absorption of renewable power at scale.
Solex Energy Chairman and Managing Director Chetan Shah stressed the need for incentives for recycling and responsible end-of-life management of solar modules, batteries and storage systems, describing these as essential for a resilient and environmentally responsible energy ecosystem.
“As India moves into a decisive phase of its clean-energy transition, Union Budget 2026-27 should focus on strengthening domestic manufacturing, grid readiness, and distributed solar adoption to ensure sustainable long-term growth,” said Pawan Garg, Managing Director of Fujiyama Power Systems.
“We expect deeper support across the full solar value chain — from ingots, wafers, and cells to batteries and power electronics — along with rationalised GST structures, low-cost long-tenure green finance, and enhanced investment in transmission and energy storage,” Garg added.
Avaada Group Chairman Vineet Mittal said the industry is looking for customs duty exemptions on clean-tech manufacturing capital equipment, easier land acquisition thresholds under project financing norms, waiver of refinancing prepayment penalties, and mandates to stimulate demand for green fuels across refining, fertilisers, shipping and mobility.
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EKI Energy Services CMD Manish Dabkara said the sector will be watching for clarity and continuity in policies influencing renewable energy deployment, carbon markets and corporate decarbonisation.
A policy focus on single-window clearances and dedicated transmission funding would help bridge gaps in connectivity and infrastructure planning, supporting long-term capacity targets, said Chandra Kishore Thakur, Global Chief Executive Officer of Sterling and Wilson Renewable Energy.
(With inputs from agencies)