As preparations for the Union Budget 2026–27 gain momentum, India’s renewable energy industry has outlined a set of priorities aimed at strengthening the country’s clean energy transition. Industry representatives have emphasised that while India has made significant progress in setting ambitious renewable capacity targets, the focus must now shift towards execution certainty and long-term sustainability.
One of the key demands from the sector is increased support for research and development. Renewable energy companies believe that targeted R&D incentives can help improve efficiency, reduce costs, and encourage innovation in solar, wind, and energy storage technologies. Enhanced research capabilities are seen as critical for maintaining competitiveness and adapting to evolving global standards.
The industry has also called for incentives to boost domestic manufacturing, particularly in the solar sector. Companies have urged the government to support the production of upstream components such as ingots and wafers, which are currently imported in large quantities. Strengthening the domestic supply chain would not only reduce import dependence but also align with India’s broader goal of self-reliance in clean energy manufacturing.
Another major area of concern is transmission infrastructure. As renewable capacity expands, existing transmission networks are under increasing strain. Industry players have requested budgetary support for upgrading and expanding transmission lines to ensure that renewable power generated in remote locations can be efficiently delivered to demand centres. Without adequate transmission capacity, the full potential of renewable projects cannot be realised.
Long-term green finance has emerged as another critical requirement for the sector. Renewable energy projects often involve high upfront capital costs and long payback periods. Industry stakeholders have sought access to affordable, long-tenure financing options through green bonds, development finance institutions, and policy-backed lending mechanisms. Such financial support is viewed as essential for attracting private investment and ensuring project viability.
Energy storage has also featured prominently in the industry’s budget expectations. With renewable sources such as solar and wind being intermittent, investments in battery storage and other energy storage technologies are necessary to ensure grid stability and reliable power supply. Companies have urged the government to introduce incentives and policy frameworks that encourage large-scale storage deployment.
Industry experts argue that these measures will help India move from a target-driven approach to one focused on implementation and outcomes. They note that policy consistency and timely support can accelerate project execution, reduce delays, and build investor confidence.
As India works towards its long-term climate and energy goals, the renewable energy sector believes that Budget 2026–27 offers an opportunity to address structural challenges. By prioritising R&D, domestic manufacturing, transmission upgrades, and green finance, the government can strengthen the foundation for sustained growth in clean energy and ensure a smoother transition to a low-carbon economy.
