As India approaches the Union Budget 2026, the energy sector does so with a sense of quiet confidence. Over the past few years, renewable capacity additions have gathered pace, policy direction has remained steady, and investor sentiment has improved across clean power, transmission and industrial decarbonisation. The challenge before the Budget is therefore not to reset the agenda, but to reinforce what is working while enabling the next phase of growth.
For the Ministry of New and Renewable Energy (MNRE), the focus has clearly shifted from ambition to execution. Solar capacity has expanded rapidly, wind has shown renewed momentum, and domestic manufacturing has begun to move beyond modules into balance-of-system components. Budget 2026 is expected to support this transition by strengthening manufacturing depth, skilling and technology adoption, rather than relying solely on fresh incentives. Industry studies by Deloitte and KPMG have repeatedly pointed out that predictable policy and tax structures now matter more than headline subsidies.
One area where the Budget can quietly deliver impact is energy storage. With renewable penetration rising, storage has moved from being an experimental add-on to a system requirement. The policy framework is already in place, and the coming Budget is expected to help translate intent into scale through improved financing access, tax clarity and support for domestic integration capabilities. Research firms have underlined that even modest fiscal support can unlock large private investments when project risk is reduced.
Transmission and grid modernisation, led by the Ministry of Power, will remain a central pillar. As renewable-rich states generate more power, moving electricity reliably to demand centres is becoming the real test of the transition. Budgetary support for green energy corridors, digital substations and forecasting tools may not grab headlines, but they are essential for grid stability. PwC’s sector outlooks have consistently highlighted that grid readiness is the difference between installed capacity and usable power.
The commercial and industrial (C&I) segment is emerging as a powerful demand driver. Corporates are increasingly sourcing renewable power through open access, group captive models and rooftop installations, driven by cost competitiveness and sustainability commitments. Budget 2026 is expected to strengthen this trend by easing financing, supporting firm power solutions that combine renewables with storage, and encouraging state-level implementation of green open access frameworks. ASSOCHAM has emphasised that enabling industry-led decarbonisation is critical for exports and long-term competitiveness.
What makes the current moment different is the alignment across stakeholders. MNRE is focused on scale and manufacturing, the Power Ministry on reliability and integration, and industry on clean, predictable power. Budget 2026 has the opportunity to knit these strands together—not through dramatic announcements, but through consistency and system-level support.
If the Budget builds on this momentum, India’s energy transition will not just remain fast—it will become resilient.