Solar Industry Seeks Support in Union Budget 2026 for Growth and Self-Reliance
The Indian solar sector stands on the brink of a remarkable transformation, poised to expand its capacity from 135 GW in 2025 to more than 300 GW by 2030. As the country aims for a pioneering role in achieving 500 GW of non-fossil fuel energy, calls for supportive policy measures are gaining momentum, with key industry leaders emphasizing the need for strategic initiatives in the upcoming Union Budget 2026.
Demand for Enhanced Manufacturing Initiatives
Industry experts argue that a refined Production-Linked Incentive (PLI) scheme is essential, particularly focusing on polysilicon, ingot, and wafer production. This targeted approach would be a game-changer for India, allowing the nation to cultivate vital upstream manufacturing capabilities and minimize its reliance on foreign imports, especially given that more than 80% of global solar manufacturing is currently dominated by China. By investing in domestic manufacturing, India can secure its solar supply chain and bolster its energy independence.
Proposals for Financial Incentives
In addition to enhancing the PLI scheme, the solar industry advocates for the introduction of accelerated depreciation benefits for solar manufacturing equipment. Such measures, akin to those already available for solar power projects, would significantly boost capital efficiency and improve returns on investment, making the manufacturing sector more dynamic. Furthermore, experts propose reducing corporate tax rates for solar manufacturers and implementing preferential lending rates through priority sector lending. These financial incentives would not only increase competitiveness but also draw in higher levels of investment, fostering a robust manufacturing environment.
Comprehensive policy reforms are seen as vital components for establishing a self-sustaining and competitive solar manufacturing ecosystem, reinforcing the objective of an Atmanirbhar Bharat (self-reliant India). With the right support, the solar industry is expected to thrive, not just meeting domestic needs but also positioning India as a significant player in the global solar market.
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