Renewable Energy Sector Urges Policy Support for R&D and Green Financing in FY27 Budget – EQ
In short : The renewable energy industry is calling for targeted incentives in the FY27 Budget to boost research and development and improve access to affordable green finance. Industry stakeholders believe enhanced fiscal support can accelerate innovation, lower technology costs, strengthen domestic manufacturing, and enable faster deployment of clean energy solutions critical to long-term energy transition goals.
In Detail : The renewable energy industry has intensified its engagement with policymakers ahead of the FY27 Budget, seeking focused support measures to sustain growth momentum. Key demands include stronger incentives for research and development and improved access to low-cost green financing to drive innovation and large-scale deployment.
Research and development is viewed as a critical pillar for advancing next-generation renewable technologies. Industry participants argue that targeted tax benefits, grants, and funding programs can encourage innovation, improve efficiency, and support the commercialization of emerging solutions tailored to local conditions.
Affordable green finance remains another central concern for developers and manufacturers. High capital costs and limited access to long-tenure financing often constrain project viability, particularly for newer technologies and smaller players entering the renewable energy space.
Stakeholders emphasize that reducing the cost of capital can significantly improve project economics. Measures such as interest subvention, credit guarantees, and blended finance mechanisms could help unlock private investment and accelerate capacity addition across solar, wind, storage, and hybrid projects.
Domestic manufacturing is also closely linked to the industry’s budget expectations. Enhanced R&D support and easier financing can strengthen local supply chains, reduce import dependence, and improve the global competitiveness of Indian renewable energy equipment manufacturers.
The industry believes that sustained innovation will be essential to address integration challenges as renewable penetration increases. Advanced grid solutions, storage technologies, and digital tools require continuous R&D investment to ensure system reliability and operational efficiency.
From a policy perspective, budgetary support for clean energy aligns with broader economic and environmental objectives. Renewable energy investment contributes to job creation, energy security, emissions reduction, and long-term resilience against fuel price volatility.
Industry representatives have also highlighted the importance of stable and predictable policy frameworks. Clear signals through the budget can boost investor confidence, encourage long-term planning, and attract international capital into India’s clean energy ecosystem.
Overall, the renewable energy sector views the FY27 Budget as a critical opportunity to reinforce the foundations of sustainable growth. Strategic fiscal support for R&D and affordable green finance could accelerate innovation, scale deployment, and strengthen India’s position in the global clean energy transition.
