The Union Budget 2025 has just been unveiled, and it’s already making waves across the renewable energy industry. With a big push for solar, green hydrogen, and energy storage, the sector has much to explore. The government’s focus on domestic manufacturing, import duty adjustments, and financial incentives signals a shift in India’s clean energy sector. But is it enough? Will these policy changes truly accelerate India’s transition to a greener future?

To break it all down, we spoke to an industry expert who has been serving in this sector for a very long time, Mr. Aditya Singh Poonia, founder of Etrica Power. Here are his expert insights on how this budget impacts the industry, what companies like Etrica Power expect, and what lies ahead.

Q1: The budget has allocated ₹26,549 crore for the Ministry of New and Renewable Energy (MNRE), with a major push for solar and green hydrogen. What’s your first reaction to this?

Aditya Singh Poonia: This is a strong move in the right direction. The increase in funding, especially for PM Surya Ghar Muft Bijli Yojana, will boost residential solar adoption. The green hydrogen mission getting ₹600 crore also boosts India’s long-term clean energy goals. However, execution will be key. The industry now needs policy stability, faster clearances, and smoother implementation to make the most of these funds.

Q2: The budget introduces a 10% import duty on solar glass while exempting manufacturing equipment for solar cell production. What impact will this have on the industry?

Aditya Singh Poonia: The government is clearly focusing on strengthening domestic manufacturing. The solar glass duty will push Indian manufacturers to scale up production, but in the short term, it could increase costs. On the other hand, duty exemptions for manufacturing equipment will lower production costs for solar cells and modules, making Indian products more competitive globally. The real challenge will be whether domestic supply can keep up with demand in the coming years.

Q3: The industry was expecting extended benefits under the Production-Linked Incentive (PLI) scheme. What more was expected from this budget?

Aditya Singh Poonia: The PLI scheme has already been a game-changer for local manufacturing, but companies were hoping for an expansion in incentives and increased allocation. We also expected clearer financing structures for large-scale solar and storage projects. While the budget makes important moves, companies will need more policy clarity and support for grid-scale storage projects to manage renewable energy fluctuations efficiently.

Q4: India has mandated using locally made solar cells for projects starting in June 2026. What does this mean for developers and manufacturers?

Aditya Singh Poonia: This is a bold step. It will boost domestic solar manufacturing, but the timeline is aggressive. Developers relying on imports will need to adapt quickly and secure local supply chains. Manufacturers, on the other hand, will need to ramp up capacity and ensure cost competitiveness with global players. If executed well, this policy could reduce India’s dependence on Chinese imports and create more jobs in the sector.

Q5: Lithium-ion batteries and critical minerals have received duty exemptions. How does this benefit India’s renewable energy growth?

Aditya Singh Poonia: This is great news for battery storage and electric mobility. Removing duties on lithium-ion batteries, cobalt, and copper scrap will make storage solutions more affordable. This will directly impact solar-plus-storage systems, EVs, and hybrid projects. As India expands its battery manufacturing ecosystem, such policies will play a crucial role in attracting investments.

Q6: What should be the industry’s next step to capitalize on this budget?

Aditya Singh Poonia: The budget provides a strong foundation, but the industry must take proactive steps. Companies should focus on:

  1. Strengthening supply chains to reduce dependency on imports.
  2. Investing in R&D to develop efficient solar modules and storage solutions.
  3. Exploring financing models that make rooftop solar and battery storage more accessible.
  4. Working with policymakers to streamline approvals and accelerate project deployment.

Q7: Lastly, how do you see India’s renewable energy future in the next five years?

Aditya Singh Poonia: India is on the verge of a clean energy revolution. The combination of policy support, investment in domestic manufacturing, and large-scale project deployment will make us a global leader in renewables. However, we must focus on execution, ensure policy consistency, and build infrastructure for grid stability. The future is green, and this budget takes us one step closer.