India's renewable energy sector enters the Budget 2026–27 cycle with strong capacity momentum but growing emphasis on execution, grid resilience, and domestic manufacturing depth. Industry leaders argue that the next phase of growth must move beyond installation targets to focus on system stability, reliability, and long-term sustainability.
Grid and transmission infrastructure is a central concern. Chandra Kishore Thakur, Global CEO, Sterling and Wilson Renewable Energy Group, says large-scale renewable deployment requires faster regulatory approvals and stronger evacuation planning. "Enhanced budgetary support for transmission line development and single-window clearances is essential to align execution timelines with national targets," he notes.
Energy storage is emerging as a critical gap in India's renewable energy transition, says Manan Thakkar, Co-Founder and Managing Director, Prozeal Green Energy Limited. While renewables now account for over 40 per cent of installed power capacity, he notes that generation alone cannot deliver a complete transition.
Grid-scale energy storage remains inadequate for a high-renewables system. Without storage, grid flexibility, and firm green power, clean energy cannot displace fossil fuels at scale. Thakkar adds that curtailment, grid congestion, and power variability are already diluting the cost advantages of low renewable tariffs.
He emphasises the need for targeted budgetary support for battery energy storage systems, pumped hydro, and green hydrogen to convert intermittent renewable power into reliable, industrial-grade energy. Thakkar also highlights India's reliance on imported electrolysers, battery cells, and power electronics, calling for production-linked incentives and policy certainty to accelerate localisation, reduce foreign exchange exposure, and create high-skilled jobs.
Echoing the storage imperative, Debmalya Sen, President, India Energy Storage Alliance, says that while solar manufacturing has gained momentum, the next phase must focus on system resilience. "Local manufacturing of Battery Energy Storage Systems is essential to support grid stability and higher renewable penetration," he explains, adding that clearer tender visibility and long-term fiscal incentives are needed to attract investment.
From a capacity and investment perspective, Dr. Faruk G. Patel, Founder and Chairman, KPI Green Energy, highlights the scale of opportunity. He notes that India added nearly 50 GW of renewable capacity in 2025 alone, supported by investments of around ₹2 trillion. "For Budget 2026, continued policy support for hybrid energy deployment, storage, and green hydrogen value chains will be crucial," he says, along with viability gap funding and clearer tax frameworks for emerging technologies.
Solar manufacturing leaders are also seeking deeper ecosystem support. Vinay Rustagi, Chief Business Officer, Premier Energies, expects higher allocations for schemes such as PM Surya Ghar and PM KUSUM, alongside incentives for domestic ingot and wafer manufacturing. He adds that favourable measures on indirect taxes and import duties for battery storage will be increasingly important.
Access to affordable finance remains a constraint, particularly for newer players. Vinay Taldani, Director and CEO, GREW Solar, points out that stable and predictable policies on tariffs and incentives are critical to sustaining investor confidence. "Long-term, affordable financing for manufacturing and project development remains limited and needs attention," he says.
Industry leaders agree that Budget 2026 must strengthen not just capacity addition, but the entire renewable ecosystem — manufacturing, storage, transmission, and financing — to ensure reliable, technology-driven growth on the path to the 500 GW target by 2030.
Byline: Staff Writer
