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As Union Budget 2025 approaches, renewable energy leaders are urging Finance Minister Nirmala Sitharaman to introduce tax incentives and subsidies for Battery Energy Storage Systems (BESS) to foster clean energy innovation. Industry experts also requested the government to improve access to affordable financing through low-interest loans and risk-mitigation mechanisms to boost rooftop solar installations.
Read the Union budget 2025 expectations in detail:
Piyush Goyal, Co-Founder & CEO, Volks Energie
India has embarked upon an ambitious journey of achieving net zero emissions by 2070, and a part of that future is achieving 500 GW of energy from non-fossil fuel forces by 2030. To the same end, we at Volks Energie believe that this year’s budget announcement could be a watershed moment for India’s renewable energy sector, especially solar and green energy.
We expect the budget to introduce incentives for tech breakthroughs and innovations in clean energy. There should also be provisions supporting large-scale investments in solar and wind energy projects, spread across the wide lands and coastlines of India.
At the same time, we recommend that the government introduce subsidies and tax rebates for Battery Energy Storage Systems (BESS), without which stabilizing the grid as more renewable energy gets added, is not possible. The government should also incentivize innovation in battery technology, favoring more up-and-coming battery solutions like LFP and Ni-Cd.
The current ecosystem for renewable energy needs to be strengthened and companies supporting cutting-edge sustainable practices must be empowered with favorable policies and investments to drive long-term sustainable growth. We certainly need a forward-looking budget that prioritizes green and clean energy in 2025.
Pratik Mandvia, Solar Business Head, Mufin Green Finance
As the Union Budget 2025 approaches, the solar financing sector is anticipating critical policy measures that will support the growth of rooftop solar installations. With the government’s goal to achieve 50,000 MW of rooftop solar capacity by 2030, there is a need for financing solutions that cater to the residential, commercial, and industrial segments. The budget could play a pivotal role in creating a framework that simplifies access to capital for solar projects and encourages financial institutions to increase their participation in solar financing.
Incentives for banks and financial institutions to provide low-interest loans, as well as risk-mitigation mechanisms, would be crucial to scaling up rooftop solar adoption. Further, tax exemptions, subsidies, and rebates on solar installations will help reduce upfront costs for consumers and businesses, driving demand in both urban and semi-urban areas.
The anticipated focus on enhancing the solar financing ecosystem will support India’s renewable energy goals, particularly the target of 500 GW of non-fossil fuel-based energy by 2030. By creating an enabling environment for solar financing, the government can foster greater adoption of solar energy, contributing to India’s energy security and environmental sustainability.