The upcoming union budget on Feb. 1 is expected to provide additional budgetary allocation support for segments like solar rooftops, offshore wind energy and green hydrogen.
"The shift toward clean energy is no longer just a trend — it’s an urgent necessity. But this transition cannot happen overnight, and it certainly won’t be smooth without strong government support," said Sanjay Gupta, chief executive officer of Apollo Green Energy.
Support For Solar Sector
Jefferies and CareEdge Ratings project higher capital allocation for the PM Surya Ghar Bijli Yojana in FY26. For context, the scheme currently offers free electricity up to 300 units per month, a 40% installation subsidy and income potential from selling surplus electricity. More support to the rooftop segment stands to benefit key players like Tata Power Co., Waaree Renewable Technologies Ltd. and Adani Green Energy Ltd.
As per Amit Paithankar, whole time director and CEO at Waaree Energies, initiatives like the PM Surya Ghar Muft Bijli Yojana have not only increased clean energy adoption among citizens, but are also opening new avenues for industry players. "Expanding such programmes to further support rooftop solar PV adoption would be a welcome step in the upcoming budget," he said.
For the solar module and cell manufacturing space, Jefferies awaits tweaks on duties. This could benefit listed players like Waaree Energies and Premier Energies.
"Anti dumping duties are a critical measure to diversify and indigenise the supply chain. Such duties can also mitigate short term price fluctuations and maintain the sector's growth momentum," Paithankar said.
Support For Offshore Wind Energy
CareEdge Ratings anticipates increased budgetary support for offshore wind incentives, including funding for project costs, larger turbines (6+ MW), and mandatory renewable sourcing by distribution companies.
Despite a Rs 6,853-crore viability gap funding scheme for two projects, developer interest remains low due to high costs—offshore wind farms are 2.5 times pricier than onshore ones, according to Inox Wind and Suzlon Energy. Enhanced support could boost project viability.
Mandate For Battery Energy Storage
Nuvama expects the government to take some measures for energy storage technology. CareEdge Ratings states the domestic battery energy storage ecosystem could benefit from an initial subsidy support via a policy linked incentive scheme or a viability gap funding scheme, as well as tax relaxations on crucial raw material imports.
As per media reports, a budget proposal which includes a mandate for developers to establish battery storage facilities has been sent to the Finance Ministry.
Green Hydrogen
While India has made significant moves to promote development in the green hydrogen space, current production costs are not comparable or viable for adoption. CareEdge Ratings expects higher fund allocation for green hydrogen over and above the current outlay under the SIGHT scheme.
Nuvama expects mandates for the use of green hydrogen, ammonia and methanol in sectors like fertilisers, chemicals, steel and refineries. The government could also implement blending green methanol with petrol, in transportation and other applicable sectors, as per the brokerage. By providing incentives for producers, efforts like these could help consumers adopt the fuel.
Infrastructure
Sanjay Gupta, CEO of Apollo Green Energy, said Budget 2025 should also address the need for modernising infrastructure, as much of the existing grid is outdated and ill-equipped to handle the growing demands of more sustainable energy.
Taxation, Duties And Subsidies
Increasing export subsidies for the renewable sector from 1% to 5% could enhance India's global standing, according to Waaree Energies.
CareEdge Rating expects rationalisation of GST on renewable energy components from 12% to 5%. This would reduce end consumer costs.
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