Budget 2026: Industry Seeks Stronger Push For Decentralised Renewables And Storage

New Delhi, Jan 23 (KNN) Weeks ahead of the Budget 2026, renewable energy experts and analysts have called for enhanced fiscal and policy measures to fast-track the clean energy transition.

India has over the past 10 years witnessed rapid growth in installed capacity, rising from 76 GW in 2014 to over 226 GW by mid-2025. 

Call for Focus on Decentralised Renewable Energy

Radhika Choudhary, Co-founder and Director, Freyr Energy, told Economic Times that the upcoming Budget should prioritise decentralised renewable energy, particularly distributed and rooftop solar, which she said can drive the next phase of growth by strengthening grid resilience, cutting transmission losses and improving access in semi-urban and rural areas.

Choudhary also called for targeted incentives for battery storage, domestic solar manufacturing and digital energy platforms, and suggested measures such as interest subvention, simplified GST and faster approvals to boost rooftop solar adoption.

Push for Low-Carbon Technologies and Green Finance

Bharath Jairaj, Executive Program Director, WRI India, said stronger policy and financial support, including tax credits, guarantees and R&D funding, is needed to promote low-carbon technologies in hard-to-abate sectors along with investments in Carbon Capture, Utilisation, and Storage (CCUS) pilots, electrolyser manufacturing, technology transfer and workforce skilling.

Jairaj urged the creation of a green bank or credit guarantee institution to mobilise capital for battery storage, green hydrogen and industrial electrification, along with Just Transition Funds for coal-dependent regions. 

He also called for pool funds to boost green steel and cement uptake, investments in critical minerals and solar villages, and an expanded production Linked Incentive (PLI) scheme covering the full solar value chain to cut import dependence.

Need to Shift Focus to Grid Reliability and Discom Reforms

Akshay Hiranandani, CEO, Serentica Renewables, said India’s renewable push must shift from capacity addition to system reliability and market viability. 

He flagged the urgent need to fix discom finances to unlock nearly 50 GW of stalled Power Purchase Agreements (PPAs), and called for budget support to accelerate transmission expansion and grid modernisation using advanced grid technologies.

He emphasised that energy storage should be treated as a grid asset under system-operator control, and said Viability Gap Funding for grid-connected battery systems is crucial to scale storage and enable round-the-clock renewable integration. 

(KNN Bureau)