Renewable Energy Demands Budget Boost: R&D, Green Finance Sought for FY27
Overview
India's renewable energy sector is pressing the government for significant incentives in the FY27 Union Budget. Key demands include boosted R&D funding, support for domestic solar component manufacturing, enhanced transmission infrastructure, and affordable long-term green finance. Industry leaders emphasize a shift towards execution certainty and decentralized energy adoption to accelerate the clean energy transition.
Renewable Energy Sector Urges FY27 Budget Focus on R&D, Green Finance, and Execution
The renewable energy industry is making a concerted push for significant fiscal support in the upcoming FY27 Union Budget, scheduled for presentation on February 1. Stakeholders are calling for targeted incentives to drive research and development, bolster domestic manufacturing of critical components like ingots and wafers, and ensure the availability of affordable, long-term green finance. The sector aims to transition from ambitious capacity announcements toward tangible execution certainty.
Manufacturing and R&D Push
Industry leaders highlighted the necessity of strengthening India's self-sufficiency in solar module manufacturing. Premier Energies Chief Business Officer Vinay Rustagi stated that the sector anticipates government support packages for R&D and domestic production of ingots and wafers. This focus aims to reduce reliance on imports and build a robust domestic value chain, crucial for long-term sustainable growth in the solar sector.
Infrastructure and Finance Needs
Enhancing transmission infrastructure emerged as a persistent challenge requiring urgent attention. Volks Energie Co-Founder and Chief Executive Officer Piyush Goyal stressed the need for a stronger push on transmission upgrades and grid modernization, including funding for inter-state systems and digital grid management. Simultaneously, OMC Power CEO Rohit Chandra emphasized that affordable, long-term green finance is critical for scaling distributed solar and hybrid systems, suggesting credible carbon monetisation frameworks could accelerate clean energy adoption.
Execution Certainty and Policy Framework
Jakson Group Chairman Sameer Gupta noted that the FY27 budget presents a vital opportunity to shift focus from headline capacity announcements to ensuring execution across the renewable energy ecosystem. Clarity and continuity in policies related to renewable deployment, carbon markets, and corporate decarbonisation remain paramount. Industry stakeholders also called for financially sound utilities and bankable power purchase agreements to provide stability.
Supporting Distributed and Green Solutions
The industry also seeks policy support for decentralized energy adoption, particularly rooftop solar and hybrid solutions for commercial and industrial consumers. This would help decentralize generation and ease grid stress. Avaada Group Chairman Vineet Mittal requested customs duty exemptions on clean-tech manufacturing equipment and mandates to stimulate demand for green fuels across sectors like refining and shipping, aiming for broader adoption of sustainable energy practices.
