Renewable Energy Industry Seeks R&D and Manufacturing Incentives in Union Budget FY27

Sector Calls for Shift From Capacity Additions to Execution Certainty​

The renewable energy industry has urged the government to extend targeted incentives for research and development, along with support for domestic manufacturing of ingots and wafers, in the Union Budget for FY27. The appeal comes as the sector looks to move beyond capacity announcements and focus on execution certainty across the clean energy value chain.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for the financial year 2026 to 27 in Parliament on February 1.

Focus on Policy Clarity, Transmission and Green Finance​

Industry stakeholders said sustained growth in renewable energy would depend on clear policy direction, financially stable power distribution utilities, and bankable power purchase agreements. They also highlighted the need for stronger transmission infrastructure and access to long-term green finance to support large-scale deployment.

Sameer Gupta, Chairman of Jakson Group, said the upcoming budget presents an opportunity to shift the focus from headline capacity additions to ensuring smooth execution across the renewable energy ecosystem. He added that a clear policy push toward distributed energy adoption, especially rooftop solar and hybrid solutions for commercial and industrial users, would help decentralise generation, reduce grid stress, and accelerate the clean energy transition in a commercially viable manner.

Distributed Solar and Carbon Monetisation in Spotlight​

According to Rohit Chandra, Chief Executive Officer of OMC Power, India’s clean energy journey has reached a critical phase where access to affordable, long-term green finance is essential for scaling distributed solar and hybrid systems. He also pointed to the potential role of credible carbon monetisation frameworks in accelerating clean energy adoption.

Push for Self-Sufficiency in Solar Manufacturing​

Vinay Rustagi, Chief Business Officer at Premier Energies, said renewable energy remains a priority area for the government. He noted that the industry expects supportive announcements for R&D incentives and domestic manufacturing of ingots and wafers to strengthen self-sufficiency in solar module production.

Grid Readiness Remains a Key Challenge​

Highlighting grid preparedness as a persistent concern, Piyush Goyal, Co-Founder and Chief Executive Officer of Volks Energie, said stronger measures are needed for transmission and grid modernisation. He emphasised funding support for inter-state transmission systems, digital grid management, and forecasting infrastructure to ensure reliable absorption of renewable power at scale.

Recycling and End-of-Life Management Gains Attention​

Chetan Shah, Chairman and Managing Director of Solex Energy, stressed the importance of incentives for recycling and responsible end-of-life management of solar modules, batteries, and storage systems. He described these measures as essential for building a resilient and environmentally responsible energy ecosystem.

Full Value Chain Support Sought​

Pawan Garg, Managing Director of Fujiyama Power Systems, said Union Budget 2026 to 27 should prioritise strengthening domestic manufacturing, grid readiness, and distributed solar adoption to ensure long-term sustainable growth. He added that the industry expects deeper support across the entire solar value chain, including ingots, wafers, cells, batteries, and power electronics, along with rationalised GST structures, low-cost long-tenure green finance, and increased investment in transmission and energy storage.

Customs Duty Relief and Demand Creation Measures​

Vineet Mittal, Chairman of Avaada Group, said the sector is looking for customs duty exemptions on clean-tech capital equipment, relaxation in land acquisition thresholds under project financing norms, waiver of refinancing prepayment penalties, and mandates to boost demand for green fuels across sectors such as refining, fertilisers, shipping, and mobility.

Call for Policy Continuity and Faster Clearances​

Manish Dabkara, CMD of EKI Energy, said the industry will closely watch for clarity and continuity in policies impacting renewable energy deployment, carbon markets, and corporate decarbonisation.

Echoing similar views, Chandra Kishore Thakur, Global Chief Executive Officer of Sterling and Wilson Renewable Energy Group, said a policy focus on single-window clearances and dedicated transmission funding would help bridge infrastructure and connectivity gaps, supporting long-term renewable capacity targets.