Budget 2026: India Targets Next-Gen Clean Energy As Renewable Energy Ministry Eyes Bigger Backing

Sarangi said MNRE is looking for sustained support for flagship schemes, which drive decentralised renewable adoption, especially in rural India.

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The renewable energy ministry is seeking continued policy and financial support to deepen adoption, strengthen manufacturing and back future-ready technologies, as India prepares for the Union Budget 2026. Renewable Enrgy Secretary Santosh Sarangi told NDTV Profit that the ministry's focus areas such as research and development, distributed renewable energy, and upstream manufacturing remain clear.

Sarangi said MNRE is looking for sustained support for flagship schemes such as PM Kusum and PM Surya Ghar, which have driven decentralised renewable adoption, especially in rural India. Under PM Kusum, states like Maharashtra, Rajasthan, Gujarat and Madhya Pradesh have seen large-scale deployment, with Maharashtra alone issuing tenders for 16 GW. These schemes have also helped states reduce agricultural power subsidy burdens.

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He highlighted the success of the utility-led aggregation model under PM Surya Ghar, which allows households to adopt rooftop solar without upfront costs. MNRE expects 7-8 GW of distributed renewable energy to come up in rural India through this model.

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On manufacturing, Sarangi said Budget support for upstream solar components will be critical. India currently has 150 GW of solar module manufacturing capacity, making it the world's second-largest producer after China. Solar cell capacity stands at 27 GW and is targeted to reach 60 GW by June 2026. Ingot and wafer capacity, currently at 2.2 GW, is expected to rise to 20 GW by 2027 based on industry commitments.

The ministry is also exploring support for polysilicon and floating solar projects. Continued R&D funding, Sarangi said, will be essential as India builds a low-cost, reliable and globally competitive clean energy ecosystem.

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