As India prepares for the Union Budget 2026, the renewable energy sector is looking at this moment as a turning point in the country’s clean energy journey. Over the past few years, India has made strong progress in adding renewable power capacity and advancing tax and policy reforms.
With the Union Budget just around the corner, expectations are running high across sectors. From relief for the middle class and measures to curb inflation, to increased spending on climate resilience, the Budget is expected to signal how the government plans to respond to economic pressures.
Budget 2026 earmarks Rs. 32,915 crore for green energy, up 30%. Key moves include Rs 22,000 crore for P, Surya Ghar rooftop solar and tax cuts on solar glass and battery parts to boost local manufacturing and lower household electricity bills.
Budget 2026-27 announces INR 20,000 crore for CCUS, extends nuclear import exemptions, boosts battery storage and mineral processing, and restructures PFC-REC to strengthen energy security and clean-tech manufacturing.
India’s Union Budget 2026–27 extends basic customs duty (BCD) exemptions on the import of capital goods used for lithium-ion cell production for battery energy storage systems (BESS), as well as capital goods required for processing critical minerals.
