February 10th 2026, Mohali, India: The Union Budget 2026–27 has delivered a strong and confident signal for India’s clean energy future, placing solar power and battery energy storage at the heart of the country’s long-term growth strategy. Reaffirming the Viksit Bharat vision, Finance Minister Nirmala Sitharaman has underscored renewable energy as a key pillar of economic resilience, infrastructure development, and energy security.

With higher capital expenditure, targeted incentives for domestic manufacturing, and a sharp focus on grid modernisation, Budget 2026 reinforces the solar energy model as the backbone of India’s transition toward a low-carbon economy. For developers, industries, utilities, and leading EPC companies in India such as Hartek Group, the message is clear: solar power and energy storage will remain central to India’s power strategy for decades to come.

Solar at the Core of India’s Clean Energy Strategy

The Budget increases overall capital expenditure to ₹12.21 lakh crore, boosting long-term confidence across infrastructure and power sectors. Renewable energy allocations have been strengthened under multiple schemes, ensuring faster deployment of solar capacity while simultaneously building a robust domestic supply chain.

A notable allocation of ₹599.99 crore for Green Energy Corridors will play a critical role in easing grid congestion and enabling efficient evacuation of renewable power. Meanwhile, the PM Surya Ghar Muft Bijli Yojana has received nearly 29% higher funding, accelerating rooftop solar adoption and bringing clean, affordable electricity to millions of Indian households.

These measures further cement solar power as a mainstream energy source, moving it beyond an alternative solution to a primary driver of India’s electricity mix.

Budget 2026 Accelerates Battery Energy Storage Adoption

One of the most impactful announcements is the nine-fold increase in Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS) to ₹1,000 crore. This decisive move acknowledges that battery storage is no longer optional but essential for the next phase of renewable growth.

By enabling round-the-clock clean power, battery storage will improve grid stability, support large-scale solar and hybrid projects, and reduce dependence on fossil-fuel-based peaking power. For every major solar energy project going forward, integrating storage will be a strategic necessity rather than a choice.

Policy Support Strengthens Domestic Manufacturing

Budget 2026 also introduces critical policy measures to strengthen India’s renewable manufacturing ecosystem. The exemption of basic customs duty on capital goods used for Lithium-Ion cell manufacturing is expected to significantly boost domestic BESS production. Similarly, customs duty exemptions on key raw materials such as sodium antimonate will reduce costs for solar glass and module manufacturers.

Commenting on these developments, Hartek Singh, CMD, Hartek Group, said:
“We welcome the government’s support for new energy. The BCD exemption on capital goods for Lithium-Ion cell manufacturing will strengthen India’s energy storage ecosystem, while duty exemptions for solar glass manufacturing will support domestic production, lower costs, and reinforce India’s clean energy transition.”

Role of EPC Companies in Delivering Grid-Ready Solar Projects

As India’s solar capacity scales rapidly, execution quality will define long-term success. Modern solar projects demand advanced engineering, seamless grid integration, regulatory compliance, and long-term performance optimisation. This is where top EPC companies in India play a decisive role.

Beyond panel installation, EPC partners ensure projects are grid-ready, storage-compatible, and designed for high efficiency across their 25+ year lifecycle. With Budget 2026 also committing ₹20,000 crore over five years toward Carbon Capture, Utilisation and Storage (CCUS), India is clearly adopting a multi-sector decarbonisation approach that requires strong technical execution on the ground.

Smart Grids: Unlocking the Full Potential of Renewable Energy

The growing share of renewables makes smart grids indispensable. When integrated with renewable energy systems, smart grids enable real-time monitoring, demand balancing, faster fault detection, and improved reliability. They address solar variability challenges and allow the grid to absorb higher volumes of clean power without disruption.

Hartek Group: Turning Policy Vision into On-Ground Impact

Hartek Group operates at the intersection of solar EPC execution, smart grids, substations, and electric power distribution. With deep expertise across renewable energy and power infrastructure, the company helps developers, industries, and utilities translate policy intent into reliable, high-ROI energy assets.

By bridging solar generation with robust grid integration and storage readiness, Hartek supports India’s clean energy ambitions while ensuring long-term operational reliability and commercial performance.

A Clear Signal for India’s Renewable Future

Budget 2026 makes it clear that India’s clean energy journey is accelerating. With the solar energy model at its core, battery storage as a critical enabler, and smart grids strengthening the backbone, the country is building a future-ready power ecosystem.

For stakeholders across the renewable value chain, this Budget is more than a policy statement—it is a call to action to invest, execute, and innovate in line with India’s clean energy vision.