Union Budget 2025-26: Energizing India's Renewable Future

Ahead of the Union Budget 2025-26, energy sector leaders call for increased investments in renewables, tax benefits, and domestic manufacturing support. Key recommendations include enhanced PLI schemes, a uniform GST for batteries, and lowered GST on solar panels and wind turbines to fast-track India's energy transition.

As the eagerly anticipated Union Budget 2025-26 approaches, the energy sector is urging the government to allocate substantial investments toward renewable energy, prioritize domestic manufacturing, and streamline financial support mechanisms. Industry leaders are calling for bolstered investments in solar, wind, green hydrogen, energy storage solutions, and grid modernization to accelerate India's transition to cleaner energy sources.

Leaders such as Dr. Amit Paithankar of Waaree Energies and Ratul Puri of Hindustan Power emphasize the need for policy support to reduce import reliance and boost domestic innovation. They advocate for extending the Production-Linked Incentive (PLI) schemes for solar components, introducing targeted tax benefits, and increasing export subsidies for renewables to enhance India's global position and develop robust domestic capabilities.

Additionally, professionals in the sector are advocating for reforms in the tax structure. Debi Prasad Dash of IESA and others suggest a uniform 5% GST for all battery types to align with the existing rate for electric vehicles. Simultaneously, a reduction in GST on solar panels and wind turbines is recommended to lower costs and drive widespread adoption, alongside fiscal incentives for emerging technologies.

(With inputs from agencies.)