Experts urge the government to prioritise financing, transmission upgrades, and domestic manufacturing to meet the 500 GW target by 2030 and ensure sustainable growth in the renewable energy sector

As India gets ready for the 2025 Union budget, the renewable energy sector has once again come into limelight, with industrial leaders emphasising the need for targeted policy measures for sustainable growth.

India currently has an installed capacity of 220 Gigabyte renewable energy but to reach 500 gigawatts (GW) of non-fossil fuel capacity by 2030, experts highlight the need for continued support and policy adjustments to maintain this momentum.

Solar Growth Fuels Confidence
The solar sector has been a key component of renewable energy growth as it has recently reached an installed capacity of approximately 100 GW. Shekhar Singal, Managing Director of Eastman Auto and Power, pointed to initiatives like Muft Bijali Yojana which has led to over 6 lakh solar installations in just 9 months. Singal noted that such type of growth reflects rising demand for Clean Energy solutions.

The government’s focus on expanding production is also seen as a welcome step aimed at strengthening domestic and reducing dependency on imports. Singal is confident that India will surpass the target of 500 giga award renewable energy capacity by 2030 with continued support of such initiatives. Interestingly the government is not only planning for 2030, but as per the Minister of New & Renewable Energy, India aims to achieve 1800 renewable energy by 2047.

Concerns Over Solar Manufacturing
With a growing solar capacity, there are still concerns about domestic manufacturing of solar PV sales. Anmol Jaggi, Chairman & Managing Director, Gensol Engineering,  pointed out potential challenges arising from the Ministry of New and Renewable Energy’s approved list of models and manufacturers Framework that is said to take effect in 2026.

Additionally, he raised concerns about proposed changes to power purchase agreement duration for renewable energy projects from 25 to 15 years could impact long-term financing for developers.

Investment Urged for Grid, Storage Expansion
In addition to solar power, experts are also calling for more investment in transmission infrastructure and energy storage capacity. Naresh Kumar, Chief Operating Officer, Lauritz Knudsen Electrical and Automation stressed the importance of upgrading power grids and expanding the smart meter system.

“Continued investment in power transmission infrastructure can augment this journey.,” Kumar said. He also emphasised energy storage technologies, such as battery energy storage systems and pumped hydro storage, which are key to decarbonising the power sector.

Pratik Agarwal, Managing Director, Sterlite Power Transmission also emphasised the importance of continued investment in upgrading transmission development. With over rupees 8 lakh crore allocated for the transmission over the next 7 years, Aggarwal suggested that the upcoming budget should have policies that support renewable energy and domestic manufacturing as well as extend the waiver on transmission charges for the renewable sector.

Akshay Hiranandani, CEO of Serentika Renewables, echoed same sentiments adding there should be more investment in transmission infrastructure. He also advocated for concessional financing for hybrid renewable projects that integrated wind, solar, and storage Technology.

Call for Financial Support to Boost Renewables
Financial support is still a key area of focus. Shyam Sharma, CFO of O2 Power suggested the government extend the concessional 15 per cent tax rate under section 115 BAB for 5 years which would provide a boost to renewable energy projects. He also suggested addressing the financial challenges by stating lower holding tax rates on external commercial borrowings and rupee-denominated bonds, which would help ease depth raising for renewable energy projects.

M. Nagaraju, Secretary, Department of Financial Services, Ministry of Finance, Government of India spoke about the rise in  Indian bond market. At an event on 29 January, he said, “Mobilising Rs 33 lakh crore for India’s energy transition is a formidable challenge, requiring a multi-pronged approach involving public sector banks, global financing institutions, and private capital. While Rs 10 lakh crore will be sourced from public sector banks, the remaining Rs 23 lakh crore must come through innovative financing instruments, including green bonds and structured debt solutions.”

CFO Sharma added, “Reconsidering the RBI’s draft circular on increased provisioning for infrastructure projects and creating a dedicated priority sector lending category for renewable energy could enhance funding access and reduce costs for the sector.”

Simarpreet Singh, Executive Director & CEO – Hartek Group also highlighted the need for financing, particularly for large-scale renewable energy projects. He stated that to maintain and accelerate this growth, the upcoming budget must prioritise financial incentives for large-scale renewable energy projects and strengthen the focus on domestic solar manufacturing.

India’s renewable energy sector is making strong progress, but meeting the 500 GW target by 2030 requires continued policy support. As experts highlight, the upcoming Union Budget presents an opportunity to address key challenges, from financial incentives to manufacturing and transmission infrastructure. With the right measures, India can maintain its momentum and strengthen its position as a leader in the global renewable energy transition