India's Renewable Energy Sector Pushes for Strong Policy Support in Union Budget 2025-26
Key Ideas
- Industry leaders emphasize the need for increased investment in solar, wind, green hydrogen, energy storage solutions, and grid modernization in the upcoming budget.
- Calls for policy measures such as enhancement of the Production-Linked Incentive (PLI) schemes, tax benefits, capital incentives, and export subsidies to boost domestic manufacturing and innovation.
- Focus on financial relief, unified GST policies, lower corporate taxes, and reduction in GST rates for solar panels and wind turbines to drive growth in the renewable energy sector.
- Importance of favorable regulatory frameworks, financial mechanisms, and infrastructure development for scaling up to 500 GW renewable power by 2030 and advancing energy storage solutions.
As India gears up for the announcement of the Union Budget 2025-26 on February 1, leaders in the energy sector are urging the government to prioritize investments in renewable energy, particularly solar, wind, green hydrogen, energy storage solutions, and grid modernization. The push for increased policy support aims to reduce the country's reliance on imports, bolster domestic manufacturing, and enhance energy security. The industry stresses the critical role of domestic manufacturing in scaling up renewable power capacity to achieve the ambitious target of 500 GW by 2030.
Key figures in the sector advocate for measures such as expanding the Production-Linked Incentive (PLI) schemes, introducing tax benefits and capital incentives, and increasing export subsidies to empower domestic players and boost India's global competitiveness. The recently achieved milestone of crossing 200 GW in total installed renewable energy capacity underscores the sector's rapid growth, with a significant increase in non-fossil fuel capacity compared to the previous year.
Calls are made for a unified GST policy on solar components, preferential lending rates, and lower GST rates on battery types to drive manufacturing and investment in clean energy technologies. Leaders also emphasize the importance of reducing GST on solar panels and wind turbines to make clean energy solutions more affordable and accelerate their adoption.
The sector acknowledges the challenges posed by intermittency and advocates for robust energy storage systems. Continued support for financial mechanisms, regulatory frameworks, and infrastructure development is deemed crucial to sustain growth in energy storage solutions and grid modernization. Market leaders foresee a positive growth trajectory for the renewable energy sector in 2025, contingent upon strong policy support and strategic integration of circular economy principles and innovation.
Topics
Investing
Renewable Energy
Investment
Energy Transition
Manufacturing
Tax Incentives
Policy Support
Growth
Union Budget
Latest News