From Subsidies to Sovereignty: Learn How Budget 2026 Transforms India’s Energy Sector 

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The Union Budget 2026 has made renewable energy the core of India’s economic plan. The government has set aside a record Rs. 32,914.7 crore for this sector, which is a 30% increase from last year.

Finance Minister Nirmala Sitharaman has emphasized India’s push toward energy self-reliance and security. She has announced tax cuts on parts used to make solar panels. The plan also invests Rs. 22,000 crore in the PM Surya Ghar: Muft Bijli Yojana to help one crore families access solar power for their homes.

Making Solar Parts at Home: A Big Step for Industry

The 2026 plan helps India make its own solar equipment as the government removed a 7.5% tax on sodium antimonate. This material is needed to make solar glass. Lowering this tax makes it cheaper to build panels in India. The budget also helps companies make batteries for energy storage. These changes help India stop relying on other countries for technology.

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Business leaders are happy with these new rules. Chandra Kishore Thakur, Global CEO of Sterling and Wilson Renewable Energy Group, said, "This move will reduce input costs for solar panel manufacturers and thereby augment domestic solar equipment production, giving an impetus to the entire sector in terms of Atmanirbharta."

How Will Budget 2026 Lower Your Monthly Bills?

The 2026 Budget helps families and small businesses save money on power. The PM Surya Ghar scheme is the biggest part of this. It aims to give 300 units of free electricity every month to 40 lakh homes by March 2026. This turns regular citizens into ‘prosumers’ who make their own power.

Small businesses will also get help from a new Rs. 10,000 crore MSME Growth Fund. This money helps local shops that install solar panels. Surendra K. Gupta, CFO of AMPIN Energy Transition, explained: "Coupled with the exemption given to battery manufacturing, VGF for BESS... the focus of the government is rightly tilting towards building an energy transition ecosystem."

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The Union Budget 2026 is a smart plan to fix India's energy future. It focuses on storing energy and making the power grid stronger. India is moving toward a time where green energy is the main source of power. The government must now make sure the new ‘Rare Earth Corridors’ work well. If this plan succeeds, India may lead the green technology manufacturing.