The Union Budget 2026–27 has placed strong emphasis on India’s clean energy transition, with a clear focus on renewable energy, domestic manufacturing, energy storage, grid infrastructure, and long-term financing. Industry reactions indicate broad appreciation for the government’s intent to provide policy stability while strengthening India’s position as a global clean energy hub.
A major highlight of the budget is the continued priority given to renewable energy as a key driver of sustainable economic growth. Measures such as customs duty exemptions on critical inputs used in solar panels, battery storage systems, biogas, and other clean energy technologies are expected to reduce costs and make green energy more accessible. These steps are also seen as important for boosting domestic manufacturing, encouraging local value addition, and reducing dependence on imports.
The expansion of rooftop solar programmes is expected to accelerate adoption among households and improve access to affordable and clean electricity. Similarly, continued support for agricultural solar schemes is likely to help farmers become more energy self-reliant, reduce electricity costs, and create additional income opportunities. Together, these initiatives support inclusive growth by linking clean energy with rural development and livelihoods.
Energy storage has emerged as a central theme in the budget. The extension of customs duty exemptions for battery energy storage system manufacturing and lithium-ion cell production has been widely welcomed. Storage is increasingly being viewed as essential infrastructure for managing renewable energy variability and ensuring grid stability. Measures aimed at lowering input costs for battery manufacturing and improving access to critical minerals and recycled materials are expected to strengthen the domestic battery ecosystem and support large-scale deployment.
The introduction of an Infrastructure Risk Guarantee Fund is another significant step. It is expected to improve project viability and unlock debt financing for large clean energy and storage projects. Along with a record capital expenditure outlay and proposed reforms in energy sector financing institutions, these steps are seen as creating a stronger financial backbone for renewable energy expansion and faster execution on the ground.
The budget also signals intent to support emerging technologies beyond conventional renewables. The proposed allocation for carbon capture, utilization, and storage over the next five years reflects an effort to address hard-to-abate emissions and deepen India’s decarbonization pathway.
At the same time, industry voices have pointed out areas where further clarity and support would be helpful. Delays in signing power purchase agreements, the need for dedicated incentives for energy storage manufacturing, the extension of existing manufacturing support schemes, and the rationalization of tax rates on storage systems and related services remain key concerns. Addressing these issues could further improve investor confidence and project viability.
Manish Gupta, Chairman, INA Solar:
“The Union Budget 2026–27 prioritizes renewable energy, solar, energy storage, and domestic manufacturing, providing policy clarity. BCD exemptions reduce costs, PM Surya Ghar and PM-KUSUM boost clean energy access, and the focus on storage and grid infrastructure strengthens India’s 500 GW non-fossil capacity target and Net-Zero 2070 vision.”
Ankit Patidar, Director & CMO, Shakti Pumps (India) Limited:
“The Budget reinforces India’s sustainable growth, clean energy, and manufacturing. Support for MSMEs, rural empowerment, and technology-driven productivity aligns with our solar irrigation solutions, enabling farmers while advancing renewable energy adoption and innovation for a resilient, climate-smart economy.”
Sanjeev Aggarwal, Founder & Executive Chairman, Hexa Climate:
“Budget 2026 is an ‘Execution Budget’ focusing on storage and finance. BCD exemptions for BESS, solar glass, and capital expenditure targets strengthen supply chains and scale-up, giving confidence to the private sector for aggressive renewable energy deployment.”
Surendra K Gupta, Executive Director & CFO, AMPIN Energy Transition:
“Budget 2026–27 highlights renewable energy with customs duty rationalisation, BESS incentives, CCUS outlay, and PFC/REC restructuring. While positive, clarity on PPAs, PLI for BESS, ALMM extension, tax incentives, and GST reduction is needed to accelerate deployment.”
Akhilesh Bagaria, Co-Founder, NavPrakriti:
“The Budget strengthens India’s battery storage and domestic manufacturing with BCD exemptions on lithium-ion cell capital goods and battery waste. The Infrastructure Risk Guarantee Fund enhances project viability and financing, supporting affordable, reliable, and sustainable energy solutions nationwide.”
Gaurav Aggarwal, Co-founder, GoodEnough Energy:
“Union Budget 2026 boosts renewable energy, capital expenditure, PM Surya Ghar, and domestic manufacturing. Customs duty rationalisation, BCD exemptions on lithium-ion cells, waste, and minerals enhance supply chains, supporting scale, investment, and a self-reliant energy transition.”
Dr. Avishek Kumar, Founder, Sunkonnect:
“Full customs duty exemption on lithium-ion battery waste strengthens feedstock security and recycling. This supports India’s battery manufacturing ambitions, enabling scale, investment, and circularity in a self-reliant, Make in India-aligned battery ecosystem.”
Overall, the budget is seen as reinforcing India’s long-term targets, including achieving 500 GW of non-fossil fuel capacity by 2030 and progressing toward net-zero emissions by 2070. By aligning renewable energy growth with manufacturing, finance, storage, and infrastructure development, the budget lays a foundation for a more resilient, secure, and self-reliant energy system while supporting the broader vision of sustainable and inclusive national development.
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