With the Union Budget 2026 just around the corner, the energy sector stands at a decisive juncture as India moves from rapid renewable capacity addition towards building a resilient, integrated and future-ready power ecosystem. Industry stakeholders across manufacturing, generation, EPC, grid infrastructure and finance are looking to the budget for signals that can unlock the next phase of the energy transition—focused on grid reliability, storage deployment, domestic manufacturing, ease of doing business and affordable capital. Expectations are high for policy continuity, targeted fiscal incentives and structural reforms that align near-term execution needs with India’s long-term climate, energy security and self-reliance goals. Edited quotes of industry experts on their expectations from Union Budget 2026 for the energy sector…
Amod Anand, Co-Founder and Director, Loom Solar
The expectations are centred on closing structural gaps in the entire end-to-end solar and green energy value chain. Solar manufacturers are looking for targeted support for upstream integration—including incentives for polysilicon, ingots, and wafers—along with rationalisation of duties on critical raw materials and resolution of the GST inverted duty structure to ease working-capital pressure. There is also a strong expectation for low-cost green finance, R&D incentives for advanced cell technologies, and stronger policy support for C&I solar, storage, and grid infrastructure to ensure demand stability and minimise curtailment risks. Together, these measures would align near-term industry sustainability with India’s long-term clean energy and manufacturing goals.
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar
Union Budget 2026 must take an integrated approach – strengthening energy storage obligations through fiscal incentives, extending production-linked incentive (PLI) coverage to future-ready technologies and critical minerals, and supporting digital energy platforms to manage demand efficiently, ease grid stress, and unlock new value streams for both producers and consumers. Further, it is critical to invest in skill development for the clean energy ecosystem, including enhanced funding for solar manufacturing skill programmes and the integration of specialised solar curricula across technical institutes and industrial training institutes, to ensure workforce readiness keeps pace with rapid capacity expansion. Equally important is the rationalisation of special economic zone-domestic tariff area norms, specifically removing customs duty on value addition.
Akshay Hiranandani, CEO, Serentica Renewables
As we step into 2026, the focus must shift to grid integration and reliability. For renewables to compete effectively with thermal power, sustained policy and budgetary support must be complemented by targeted budgetary support for grid capacity building. Grid Controller of India Limited (GRID-INDIA), as the custodian of grid operations, needs advanced tools and technologies to manage rising renewable penetration. Investments in STATCOMs, grid-forming inverters, dynamic line rating and grid-forming batteries will be critical to enhance power flows in high renewable zones while preserving system resilience.
Energy storage will be central to the next phase. From an operational standpoint, the intermittency of renewables requires batteries to be deployed as grid assets, not just as commercial storage projects. Sudden wind gusts or cloud cover can cause sharp, large-area generation swings, requiring fast responding resources to stabilise the system. Battery systems under GRID-INDIA’s control can support frequency regulation, manage ramping requirements and meet evening peak demand. To enable this at scale, viability gap funding for grid-connected battery assets will be essential.
Srivatsan Iyer, Global CEO, Hero Future Energies
As India enters the next phase of its energy transition in 2026, the priority must shift from capacity addition alone to building a despatchable and resilient energy system, which requires focused investments in new areas of energy storage, transmission infrastructure and a diversified clean energy mix. To further strengthen this sector, the upcoming union budget must announce additional measures aligned with India’s climate commitments and global competitiveness. Priority should be given to incentivising investments in green hydrogen, grid-scale energy storage, modernising transmission infrastructure, and introducing targeted PLIs or tax incentives to enhance energy security and build alternative material ecosystems.
Devansh Jain, Executive Director, INOXGFL Group
We expect the focus on clean energy to remain positive, especially around increasing transmission capacity, enabling grid flexibility, scaling storage and resolving ongoing issues, leading to capacity additions required to achieve our 2030 target of 500 GW of installed renewable capacity.
Vimal Kejriwal, MD, KEC International
We expect the Union Budget to continue driving infrastructure-led growth through a meaningful increase in capital expenditure, with priority on power transmission & distribution, renewables, water, railways, urban infrastructure and defence. Continue policy focus on boosting consumption and demand, through income support, employment generation and urban development, to further improve capacity utilisation and act as a catalyst for revival in private sector capital expenditure.
In the Power and Renewables sector, expectations include steps towards resolving the grid congestion, fast track strategic projects such as the Leh–Ladakh corridor and address land acquisition and Right-of-Way (RoW) challenges. Further, we expect stronger policy and fiscal support for battery energy storage, pumped storage and green hydrogen to enable India’s energy transition.
Saurabh Kumar, Vice president – India, Global Energy Alliance for People and Planet
The Union Budget 2026 presents a clear opportunity to fast-track investments in grid modernisation with increasing share of renewables in the energy mix. Higher budgetary support for renewables, tax and GST rationalisation for Battery Energy Storage Systems (BESS) are critical to improve project viability and attract private investment. Extension of PM-KUSUM scheme to more states will further accelerate agri-solarisation. We also hope that incentives for utility-led models for rooftop solar adoption will promote revenue generation for DISCOMS and encourage adoption by low-income households.
Prashant Mathur, CEO, Saatvik Green Energy Limited
We strongly advocate for an enhanced PLI scheme specifically for polysilicon, ingot and wafer manufacturing. This targeted approach will enable India to rapidly establish critical upstream capabilities and reduce our heavy dependence on imports, particularly from China, which controls over 80 per cent of global solar manufacturing. Beyond PLI, we urge the government to introduce accelerated depreciation benefits for solar manufacturing equipment, similar to those provided for solar projects, which will significantly improve capital efficiency and returns. Additionally, reduced corporate tax rates for solar manufacturers and preferential lending rates through priority sector lending would enhance competitiveness and attract greater investments.
Neerav Nanavaty, CEO, BluPine Energy
As capacity continues to scale, focused investments in transmission and evacuation infrastructure will help maintain momentum. Strategic grid expansion, hybrid project configurations and the increasing deployment of battery energy storage systems (BESSs) are enhancing reliability and despatchability. Along with the faster conversion of bids into power purchase agreements and power sale agreements, these developments are boosting investor confidence and positioning India’s renewable ecosystem for resilient, infrastructure-ready growth through 2026 and beyond.
Sunil Rathi, Executive Director, Waaree Energies Limited
Policies must strengthen three core pillars. First, deeper support for vertically integrated manufacturing – spanning solar, batteries and energy management systems – to build resilient domestic supply chains and reduce import dependence. Second, an expanded and more flexible viability framework that enables the large-scale deployment of storage, particularly when integrated with solar and hybrid projects. And third, a sharper focus on domestic value addition that catalyses skilled employment and long-term manufacturing competitiveness.
Vinay Rustagi, Chief Business Officer, Premier Energies
The renewables sector has been a major priority area for the government, and we expect more favourable announcements supporting the sector in this budget. The two key schemes, PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) and Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM), are expected to ramp up significantly and should get much higher budgetary allocation. We are also expecting the roll-out of the PM-KUSUM 2.0 scheme with higher targets and incentives. Other focus areas should include incentive packages for research and development, as well as the local manufacturing of ingots and wafers to improve self-sufficiency for solar module manufacturing. Since the battery storage segment is becoming critical for the power sector, we also expect favourable moves in relation to indirect taxes and import tariffs for the same.
CA Baratam Satyanarayana, CFO and Director, Bondada Group
As India prepares for Union Budget 2026, the clean energy ecosystem will be at an inflection point. For EPC players operating across renewable energy and emerging storage solutions, the focus must now shift from capacity creation to execution certainty. We are hoping for a budget that strengthens grid infrastructure, accelerates utility-scale renewable deployment and provides clear policy support for BESSs, which are critical to balancing intermittent power and improving project bankability. A stable policy framework, faster approvals and improved access to long-term financing will enable EPC companies to scale efficiently and deliver projects on time.
Simarpreet Singh, Executive Director and CEO, Hartek Group
As India looks to Union Budget 2026, the priority must move beyond capacity creation to building a grid that can actually store, transmit and balance renewable energy at scale. The budget must recognise grid strength, energy storage, skilled manpower and domestic manufacturing as strategic enablers of India’s energy transition, not peripheral add-ons. Only then can renewable scale translate into stable, bankable and sustainable outcomes. The budget must respond with decisive investments in grid modernisation.
On the manufacturing front, extending PLI schemes across the entire solar value chain and key grid equipment will reduce import dependence and strengthen India’s energy security. Optimising flagship schemes such as PMSGMBY and PM-KUSUM, along with new green finance instruments like sovereign green bonds and climate-focused funds, can further accelerate adoption while attracting long-term capital.
Srinivas Suthram, Senior Vice President, Kshema Power India
As India’s renewable energy transition gathers momentum, the Union Budget can play a crucial role in accelerating deployment across the solar and wind sectors through focused policy support. Continued government support for solar and EPC-led infrastructure projects will be key to sustaining capacity addition and strengthening execution capabilities on the ground. Clear and consistent policies supporting the land availability for large wind farms and grid connectivity for wind turbine installations can help revive momentum in the wind sector and encourage long-term investments. Additionally, a calibrated rationalisation of import duties on critical renewable components, particularly those sourced from China and other major items for the creation of the sub-stations for power evacuation for these wind farms like circuit breakers, isolators etc., would help reduce project costs and address supply-chain constraints while domestic manufacturing continues to scale. Such balanced measures can enhance project viability, improve timelines, and reinforce investor confidence in India’s clean energy ecosystem.
Vinay Thadani, Director and CEO, GREW Solar
As India enters a phase of large-scale renewable deployment, Union Budget 2026 must move beyond a sole focus on capacity addition and pay closer attention to the ecosystem that supports sustained growth. While Union Budget 2025 increased allocations to the renewable sector through higher Ministry of New and Renewable Energy (MNRE) funding, initiatives such as the PMSGMBY and PM-KUSUM, and continued support for green energy corridors and distribution reforms, some gaps remain. Access to long-term, affordable financing for manufacturing and project development is still limited, particularly for emerging players. In addition, more stable and predictable policy frameworks around tariffs, incentives and project contracts will help improve investor confidence.
Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group
As we look ahead to Union Budget 2026, the renewable energy sector anticipates measures that streamline regulatory approvals and land acquisition processes for large-scale projects. Enhanced budgetary support for transmission line development and evacuation infrastructure will be essential to align execution timelines with national targets. Policy focus on single-window clearances and dedicated transmission funding will support the MNRE’s drive towards 500 GW of non-fossil fuel capacity by 2030, bridging existing gaps in connectivity and infrastructure planning.
(Note: The above inputs were received from industry stakeholders prior to the announcement of Union Budget 2026-27.)