Union Budget 2026: A Rs 28,000 Crore Leap Toward a Solar-Powered India

The Union Budget 2026-2027 significantly ramps up India's commitment to Solar energy with a primary focus on household autonomy and agricultural resilience. A landmark allocation of Rs 22,000 crore has been proposed for the PM Surya Ghar Muft Bijli Yojana, aimed at providing free electricity to residential sectors through rooftop solar installations. Simultaneously, the PM-KUSUM mission received Rs 5,000 crore to bolster energy security for farmers, while an additional Rs 1,775 crore is earmarked for expanding grid-connected solar power projects across the nation.

To strengthen the "Aatmanirbhar Bharat" vision in renewable manufacturing, the budget introduces critical customs duty reforms to lower production costs. Most notably, the basic customs duty on sodium antimonate, an essential raw material for manufacturing solar glass, has been slashed from 7.5 per cent to Nil. While certain exemptions for silicon used in solar cells are set to expire in April 2026, the government has maintained the effective duty rates to ensure a stable and competitive environment for domestic silicon wafer and module producers.

Beyond immediate power generation, the 2026 budget looks toward the future of solar science and research infrastructure. As part of a broader initiative to position India as a global leader in astrophysics, the government announced plans to establish or upgrade the National Large Solar Telescope. This investment in high-tech observational facilities, alongside projects like the National Large Optical-Infrared Telescope, aims to foster innovation and provide immersive scientific experiences, bridging the gap between clean energy production and cutting-edge space research.

Updates from Budget 2025: The Union Budget 2025 solidifies India’s energy transition by allocating Rs 1,500 crore to the solar power grid, building on previous massive funding hikes and supporting core initiatives like the Solar Park and Grid Connected Rooftop schemes. Beyond solar, the budget introduced the Clean Tech Manufacturing Mission to localise the production of PV cells and EV batteries, alongside a landmark Nuclear Energy Mission targeting 100 GW by 2047 with a Rs 20,000 crore push for Small Modular Reactors. By reducing tariffs on critical renewable components and incentivising state-level transmission reforms, the government is aggressively pursuing a diversified, self-reliant, and low-carbon power infrastructure.

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Disclaimer: The article is for informational purposes only and not investment advice.