India’s renewable energy sector is entering a transformative phase as it accelerates toward ambitious targets, including achieving 500 GW of non-fossil fuel capacity. The upcoming Union Budget 2026 is being viewed as a critical opportunity to strengthen domestic manufacturing, support energy storage, and ensure sustainable growth across the clean energy ecosystem. Experts emphasize that while capacity addition has been significant, the next phase must focus on building resilience, technological depth, and global competitiveness.
The industry highlights several areas that require urgent attention. Domestic solar module manufacturing, including upstream integration from polysilicon, ingots, wafers, to high-efficiency modules, needs continued incentives. Rationalization of customs duties on critical raw materials not available domestically and reforms in GST structures are considered vital to ease working capital pressures. There is also a strong demand for access to low-cost, long-tenure financing and infrastructure support for manufacturing clusters to scale production while reducing cost pressures. Advanced technologies such as TOPCon and HJT, along with investments in research and development and skilling programs, are expected to enhance the global competitiveness of Indian manufacturers.
Energy storage and grid flexibility are central concerns for the next phase of renewable integration. The projected requirement for energy storage is expected to increase fivefold over the next five years to ensure reliability and stability amid rising renewable penetration. Policy support, fiscal incentives, and targeted investments in Battery Energy Storage Systems (BESS) are seen as essential. Experts urge budget allocations for testing infrastructure, research in next-generation battery chemistries, and the development of a circular economy for battery recycling to reduce import dependence and enhance sustainability.
Diversification of the renewable energy mix is also emphasized, with calls for support beyond solar, including wind, tidal, and other emerging technologies. Ensuring a stable domestic supply of critical minerals like lithium, cobalt, nickel, and rare earth elements is viewed as essential, especially given global supply chain risks and geopolitical pressures. Strategic localization, technology-led alternatives, and international partnerships are considered critical to building a resilient and self-reliant clean energy ecosystem.
From a policy perspective, stability and predictability are deemed equally important. Long-term, affordable financing, predictable tariffs, clear incentives, and assured payment mechanisms are seen as necessary to maintain investor confidence. Modernizing transmission and distribution infrastructure, implementing smart grids, digital forecasting, and storage-linked evacuation are crucial to support higher renewable capacity and efficient grid operations. Additionally, reforms in SEZ regulations and export-oriented policies are expected to improve competitiveness in global markets.
Prashant Mathur, CEO, Saatvik Green Energy Limited:
“With Budget 2026 approaching, policy direction and fiscal support for renewable energy are critical. Key areas include accelerating capacity addition, strengthening domestic manufacturing, and supporting India’s clean energy transition. The right measures can enable growth, ensure demand stability, and enhance competitiveness while fostering a sustainable, future-ready renewable energy ecosystem.”
Debmalya Sen, President, India Energy Storage Alliance (IESA):
“Budget 2026 should accelerate India’s EV and battery ecosystem, supporting domestic manufacturing, critical mineral refining, BESS testing, next-gen R&D, GST reduction on components, and incentives for recycling. Measures like tax benefits on EV loans and accelerated depreciation for electric trucks will position India as a global leader in battery innovation and sustainable mobility.”
Sameer Gupta, Chairman, Jakson Group:
“Execution, manufacturing depth, and system resilience will define India’s clean energy transition. Budget 2026 should expand PLI across the solar value chain, support integration with storage and hybrid solutions, modernize T&D infrastructure, and enable affordable green finance. These measures can make ‘Made in India’ synonymous with globally competitive, reliable clean energy solutions.”
Gyanesh Chaudhary, Chairman & MD, Vikram Solar:
“Budget 2026 must focus on energy storage, supply chain incentives, demand-side digitalisation, and export competitiveness. With India’s storage needs projected to quintuple, supporting advanced manufacturing, SEZ reforms, and skill development for solar manufacturing will be critical to achieving a resilient, low-carbon, and globally competitive energy future.”
Vinay Thadani, Director & CEO, GREW Solar:
“Budget 2026 must strengthen the renewable ecosystem beyond capacity addition. Long-term, affordable financing, stable policy frameworks, and predictable tariffs will improve investor confidence and support large-scale renewable adoption, ensuring a reliable and sustainable clean energy transition.”
Kushagra Nandan, Co-Founder, LNK Energy:
“Policy stability and assured payments are key for sustained investor confidence. Budget 2026 should continue schemes supporting manufacturing and renewable generators while enhancing grid infrastructure and long-duration storage solutions. These systemic enablers are essential to absorb growing renewable energy volumes without limiting the sector’s potential.”
Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd:
“As India moves toward 500 GW non-fossil capacity, Budget 2026 must strengthen domestic solar manufacturing. Extending incentives for fully integrated manufacturing, easing customs duties, providing low-cost financing, and supporting R&D in advanced technologies like TOPCon and HJT will help Indian manufacturers compete globally, ensuring quality and transforming India into a hub for high-efficiency solar modules.”
Anurag Choudhary, CMD & CEO, Himadri Speciality Chemical Ltd.:
“India’s renewable transition must prioritize energy reliability and storage through BESS and a diversified energy mix. Securing critical minerals like lithium, cobalt, and nickel is vital given global supply constraints. Budget 2026 should focus on localizing supply chains, advanced technologies, and strategic partnerships to ensure a self-reliant, competitive, and sustainable clean energy ecosystem.”
Amod Anand, Co-Founder & Director, Loom Solar:
“India’s solar manufacturing is at a transition phase, moving from capacity creation to global competitiveness. Budget 2026 should target upstream integration, rationalize duties, resolve GST structure issues, enable low-cost green finance, and support advanced R&D and C&I solar projects. These measures will align near-term sustainability with India’s long-term clean energy goals.”
Vinay Thadani, Director & CEO, GREW Solar:
“Budget 2026 must focus beyond capacity addition to the renewable ecosystem supporting sustained growth. Stable financing, predictable policies, and infrastructure for manufacturing and project development are essential. Addressing these gaps will strengthen investor confidence, enable large-scale adoption, and ensure a reliable and resilient renewable energy transition across India.”
Sanjay Garg, Director, Shweta Solar Pvt. Ltd:
“Solar adoption now spans rooftops, businesses, and institutions. Rising input costs challenge suppliers. Budget 2026 can accelerate adoption by easing component costs and encouraging rooftop systems. Stable and practical policies will help the sector scale sustainably for suppliers and end-users alike.”
Vinod Sharma, Director, Joint Solar:
“The solar market is maturing, with customers prioritizing system performance and reliability. Manufacturers need budgetary stability—predictable duties, input costs, and long-term financing—to align production with project demand. This allows focus on execution rather than policy adjustments, fostering growth and reliability in the sector.”
Dr. Avishek Kumar, Founder, Sunkonnect:
“Budget 2026 must prioritize BESS scaling for grid stability, local manufacturing, and a circular economy. Fiscal incentives, recycling infrastructure, and policy consistency will unlock renewable deployment beyond capacity milestones. This ensures India’s leadership in storage, recycling, and sustainable manufacturing on a global scale.”
Vinayak Walimbe, MD, Customized Energy Solutions:
“Budget 2026 must strengthen the battery ecosystem across manufacturing, BESS, EVs, and recycling. GST reduction, fiscal support, and low-interest finance will enhance competitiveness. Expanding PLI, incentives for components, and R&D funding for next-gen storage technologies will position India as a global leader in energy storage, supporting a self-reliant, sustainable future.”
Overall, the industry perspective suggests that Budget 2026 must move beyond merely expanding capacity and focus on creating a holistic ecosystem that supports sustained growth. Investments in manufacturing, energy storage, grid modernization, policy stability, and skill development are seen as vital to ensure that India not only meets its renewable energy targets but also emerges as a global hub for advanced, reliable, and sustainable clean energy solutions. By addressing these priorities, the upcoming budget has the potential to lay the foundation for a resilient, competitive, and future-ready renewable energy sector.
