Budget 2026: The energy sector is going to be a key focus tomorrow as Finance Minister Nirmala Sitharaman tables the Union Budget 2026 at 11 am. The finance minister is set to present her ninth consecutive Budget on 1 February, with industry experts pinning hopes on her for India to carry on its clean energy mission.
In Budget 2025, India’s renewable energy sector got a major boost at the Centre increased the sector’s allocation by 53%. Going forward, experts expect that this momentum would sustain as the country approaches its goal of Vikshit Bharat.
How did Budget 2025 benefit the energy sector?
In Budget 2025, FM Sitharaman allocated ₹22,600 crore to the renewable energy sector — a massive over two-fold surge from budget estimates (BE) for FY25, and a 53% jump from the revised estimates (RE).
That year, ₹26,549.38 crore was allocated to the Ministry of New and Renewable Energy, up 53.48% against Revised Estimates of ₹17,298.44 crore a year ago.
The government directed ₹24,224.36 crore out of this amount to the solar energy sector, for projects including solar power grid and Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM).
The Nuclear Energy Mission, targeting 100 GW by 2047, got an allocation of ₹20,000 crore for various projects.
What industry leaders want in Budget 2026
According to Shyam Sunder Jindal, promoter at BC Jindal Group, Budget 2026 should focus on policies and regulations that support India’s growth in the renewable energy sector with clean power generation getting significant pace.
“In the upcoming Budget 2026, favourable regulations and policies that enable the seamless deployment of large-scale battery storage infrastructure and solutions alongside renewable projects are expected to guide the industry’s expansion. We are observing the commissioning of large-scale initiatives that focus on deploying solar rooftop infrastructure, and, therefore, interventions that support project financing and address supply-chain bottlenecks will aid growth at scale,” he said.
Kaushik Tanti, chief operating officer at Replus urged an expansion of the existing Viability Gap Funding framework for battery storage systems to ensure large-scale grid storage and renewable integration.
“With FAME II concluding, a successor EV incentive framework is essential to sustain adoption, especially in mass-market segments. Overall, continued focus on clean, reliable, and affordable energy will be critical to achieving India’s long-term energy and climate goals.”
According to Vivek Bhatia, MD and CEO of TKIL Industries and Chairman CII Mining and Construction Equipment Division, India has an opportunity in areas such as green hydrogen, biofuels and biochemicals, which should be considered in Union Budget 2026.
“Investing aggressively in these sectors will build upon our existing robust manufacturing ecosystem, reduce our dependence on crude imports and further enhance our “Green Economy” taking us and the world faster towards ‘Net Zero’. As a nation we have a unique opportunity to build global leadership positions in each of these sectors unhindered by geopolitical challenges we face in AI, EVs and other tightly controlled global sectors,” he said.
Anurag Choudhary, CMD and CEO at Himadri Specialty Chemical Limited said, “I expect Budget 2026 to be proactive, building upon previous allocations and strengthening support across these areas to enable a self-reliant, competitive, and sustainable clean energy ecosystem in line with the vision of Atmanirbhar Bharat.”
As per Global Energy Alliance for People and Planet vice president (India) Saurabh Kumar, the Union Budget 2026 can fast-track movements in grid modernisation.
“Higher budgetary support for renewables, tax and GST rationalisation for Battery Energy Storage Systems (BESS) are critical to improve project viability and attract private investment. Extension of PM-KUSUM scheme to more states will further accelerate agri-solarisation. We also hope that incentives for utility-led models for rooftop solar adoption will promote revenue generation for DISCOMS and encourage adoption by low-income households,” he said.
