Finally, Finance Minister Nirmala Sitharaman presented the Union Budget 2025 today. As she walked into Parliament in her elegant Madhubani artwork saree, all eyes were on her, especially from the renewable energy sector. With India aiming for 500 GW of renewable energy capacity by 2030 and pushing for net-zero emissions by 2070, expectations were high. The industry was eager to see whether the budget would fuel its growth or leave gaps in its ambitious clean energy targets.
With rising global demand for solar, wind, hydrogen, and energy storage, India’s green transition needs strong financial backing. The budget revealed a bold push for solar power, green hydrogen, and infrastructure development, showing the government’s commitment to clean energy expansion. Here’s how the numbers stack up.
More Funds for Renewable Energy
The Ministry of New and Renewable Energy (MNRE) received ₹26,549 crore for 2025-26, a significant increase from previous years. This signals the government’s focus on scaling up green energy and making India a global leader in clean technology.
Solar Power Takes the Lead
- PM Surya Ghar Muft Bijli Yojana gets ₹20,000 crore to provide free electricity to one crore households through rooftop solar installations.
- Solar Power (Grid) is allocated ₹1,500 crore to expand solar energy projects across India.
- Off-grid solar power, however, sees a sharp budget cut, receiving only ₹0.01 crore, indicating a shift towards large-scale grid-based solar projects.
Wind and Hydro Energy—A Modest Allocation
- Wind Power (Grid) gets ₹500 crore, which is lower than last year’s allocation.
- Hydro Power (Grid & Off-Grid) receives ₹50 crore, maintaining previous levels.
Big Push for Green Hydrogen
The National Green Hydrogen Mission gets ₹600 crore, reaffirming India’s ambition to become a global hub for green hydrogen production and export. This funding will support research, production, and the development of hydrogen infrastructure.
Storage and Transmission
- The Green Energy Corridor secures ₹600 crore to enhance transmission infrastructure for renewable energy projects, ensuring efficient power distribution.
Bio-Energy and Waste-to-Energy Projects
- Biogas and Off-Grid Bio Power receive ₹325 crore, supporting clean cooking fuel and decentralized power generation initiatives.
Support for Research and Development
- Research and Development (R&D) in renewable energy gets ₹46 crore, encouraging innovation and new clean energy technologies.
Institutions and Global Solar Cooperation
- National Institutes of Solar, Wind, and Bio-Energy receive ₹73.4 crore for research and training programs.
- The International Solar Alliance (ISA) is granted ₹100 crore to strengthen India’s global solar energy development leadership.
What This Means for the Industry
The government’s long-term clean energy vision reflects the budget’s strong focus on solar power, green hydrogen, and energy infrastructure. However, the reduced allocation for wind and hydropower raises questions about their future growth.
For businesses and investors, this budget brings massive opportunities in rooftop solar, hydrogen production, and grid expansion. As India moves toward energy security and decarbonization, this financial support will play a key role in shaping its renewable energy landscape.
The challenge now lies in efficient implementation—whether these funds can drive actual projects and accelerate India’s transition to a clean, green future.
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