The Union Budget 2025-26 provides a comprehensive roadmap for India’s transition to a sustainable energy future, with a clear focus on expanding clean energy capacity. The ambitious target of 500 gigawatts of non-fossil fuel energy by 2030, coupled with significant support for solar and wind energy, is a much-needed push for the sector. The government’s focus on incentivizing states to reform electricity distribution and improve intrastate transmission is equally crucial, especially given the challenges faced by regions like Rajasthan, Gujarat, and Uttar Pradesh. These measures will not only enhance power reliability but also create a more resilient energy infrastructure, which will be vital as we scale our clean energy projects.
The allocation of ₹1,500 crore to the solar power (grid) segment in this budget reinforces India’s commitment to the renewable energy transition. The sector has witnessed consistent and significant budgetary support over the years. In recent years, solar power has been a key priority, with allocations surging from ₹2,369.13 crore in 2021-22 to ₹3,304.03 crore in 2022-23. Even in 2020-21, when the allocation stood at ₹2,449.65 crore, the sector received substantial backing. This continued investment highlights the government’s long-term vision for clean energy adoption.
The extra borrowing allowance provided to states, contingent on the implementation of reforms, will also strengthen the operational efficiency and financial health of power distribution companies, ensuring that the benefits of clean energy reach all corners of the country. We remain committed to playing our part in India’s clean energy goals, and this budget will be a key enabler in achieving those objectives.
