Budget 2025: Renewable energy sector calls for sops to achieve 500 GW by 2030

India's renewable energy sector requires continued government support and policy decisions in the Union Budget 2025-26, as it is critical to achieve the target of 500 gigawatts by 2030, say experts.

To achieve this target, the immediate focus should be on critical enablers such as the timely signing of Power Purchase Agreements (PPAs) for awarded contracts and accelerated development of transmission infrastructure. The budget should include adequate sops for transmission and distribution, they say.

''To meet the demand, renewable energy installations must scale from the current 28 GW annually to 50–60 GW per year, alongside ramping up energy storage to a minimum of 20 GWh annually. This transformative shift will require an estimated USD 1 trillion investment over the next decade," says Vineet Mittal, Chairman of Avaada Group.

While bids by government agencies have gathered pace in recent years, the Captive & Industrial (C&I) segment of private industry consumers has also been growing rapidly. ''The government’s continued support for financial mechanisms and a favourable regulatory framework will further strengthen the RE segment’s growth," says Srivatsan Iyer, Global CEO, Hero Future Energies.

Mittal suggests the rollout of Green Energy Corridor (GEC) Phase-III to strengthen intra-state transmission systems, especially in renewable-rich states such as Rajasthan, Madhya Pradesh, Gujarat, Maharashtra, and Andhra Pradesh. He suggests measures like the formation of a National Renewables Council, extension of reduced inter-state wheeling charges, reduced GST on Battery Energy Storage Systems (BESS) and enhanced R&D outlays for the sector as measures of immediate requirement.

''The government to support the sector by absorbing part of the incremental costs associated with building transmission infrastructure and consider providing concessional financing for projects, particularly hybrid solutions integrating wind, solar, and storage," says Akshay Hiranandani, CEO, Serentica Renewables.

The potential extension and enhancement of the Production Linked Incentive Scheme (PLI) scheme would further empower domestic players to scale their manufacturing capacities and accelerate progress toward achieving the 2030 target, says Amit Paithankar, Whole-Time Director & CEO, Waaree Energies.

''While ALMM (Approved List of Models and Manufacturers) for modules is already operational and for cells is in the draft, expanding ALMM to include supply chain components such as ingots and wafers would enable comprehensive backward integration, bolstering domestic manufacturing'', he says. Anti-dumping duties (ADD) are another critical measure to diversify and indigenise the supply chain, though their implementation must be gradual to mitigate short-term price fluctuations and maintain the sector's growth momentum, says Paithankar.

The Ministry of New and Renewable Energy (MNRE) recently introduced the ALMM-II framework, specifically designed for solar PV cells and is expected to take effect on June 1, 2026. However, with limited in-house cell manufacturing capacity and an ambitious annual target of approximately 35 GW, the demand-supply gap could lead to higher pricing for domestic cells and an increase in overall project costs, says Anmol Jaggi, Chairman & Managing Director, Gensol Engineering.

To address the growing demand for expertise in the sector —estimated at 2-3 million jobs in the solar sector alone by 2030—it is essential to integrate renewable energy education into the core curricula of leading institutions such as IITs and IIMs, says Rakesh Kalsi, Managing Director, Infrastructure Solutions of TruBoard Partners. ''Robust public-private collaboration, substantial investment in training and upskilling, and active promotion of gender diversity and programmes and policies must also inspire young talent to see renewable energy as a dynamic career choice, on par with fields such as IT or AI," he says.