Budget 2025: Green Firms Seek Support For Wafer, Ingot Production

As the Union government is gearing up to announce the Union Budget, India’s renewable energy sector is expecting more hand-holding support from the government. The industry is now also keen to have more stability in policies and attention to some of the lesser support areas of the industry. In the last interim and extended budget Union Finance Minister talked about extending the benefits of PM Surya Ghar, imposing Customs Duty against the import of solar glass among others. The industry is now seeking more concentrated efforts from the government towards the Indian solar sector.

Some of the expectations include the demand for extending government support to the production of wafer and ingot manufacturing in the country, streamlining financing for solar projects, and working toward power transmission among others. We are presenting some of the budget expectations from the industry from solar module makers, project developers and other stakeholders of the Indian renewable energy sector.

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“While ALMM for modules is already operational and for cells is in draft, expanding ALMM to include supply chain components such as ingots and wafers would enable comprehensive backward integration, bolstering domestic manufacturing. Anti-dumping duties (ADD) are another critical measure to diversify and indigenize the supply chain, though their implementation must be gradual to mitigate short-term price fluctuations and maintain the sector’s growth momentum. Simultaneously, maintaining ease of doing business by facilitating balanced raw material sourcing will ensure a stable and sustainable ecosystem.”

Amit Paithankar, CEO, Waaree Energies

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“Goldi Solar urges the government to continue devising policies that enhance global competitiveness, foster self-sufficient local manufacturing, and support the expansion of infrastructure needed for manufacturing excellence. Key measures such as reducing GST on renewable equipment, expanding initiatives like the ‘Green Credit Program,’ and increasing R&D funding for solar technologies are crucial to making clean energy more accessible and affordable. Further, investments in transmission infrastructure and strengthening public-private partnerships will further ensure grid stability and efficiency.”

Ishver Dholakiya, Founder & MD, Goldi Solar

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“While bids by Govt agencies like SECI and SJVN have gathered tremendous pace in recent years, the Captive & Industrial (C&I) segment of private industry consumers has also been growing rapidly.  The government’s continued support for financial mechanisms and a favourable regulatory framework will further strengthen the renewable segment’s growth.”

Srivatsan Iyer, Global CEO, Hero Future Energies

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“Extension of Section 115BAB Sunset: Section 115BAB of the Income-tax Act, 1961 (“IT Act”) provides for an optional lower tax rate of 15% (effective rate of 17.16% including surcharge and cess) for new domestic manufacturing companies that do not avail of any specified incentives or deductions and meet prescribed conditions. One such condition is that these new manufacturing companies commence manufacturing or production by March 31, 2024. As the industry is still recovering from the aftereffects of COVID-19 and is now finally on a growth trajectory, extending the sunset for the next 3 years for renewable energy companies is crucial to attract investment, stimulate overall economic growth, and encourage environmental conservation. Subsidies for Energy Storage and Smart Grid Technologies: Subsidies for energy storage and smart grid technologies are paramount to ensure grid stability as we scale up our renewable energy capacity.

Parag Agarwal, CFO, Juniper Green Energy

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“To meet the demand, renewable energy installations must scale from the current 28 GW annually to 50–60 GW per year, alongside ramping up energy storage to a minimum of 20 GWh annually. This transformative shift will require an estimated USD 1 trillion investment over the next decade. Domestic financial institutions must increase their exposure to the renewable energy sector to ensure the flow of adequate capital for this critical transition.

Vineet Mittal, Chairman, Avaada Group

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“With renewable energy installations expected to grow more than fourfold by 2030, we are confident that C&I sectors like manufacturing, data centres, automotive, cement, steel etc. will thrive in an environment that supports their sustainability efforts and climate goals. The C&I sector, responsible for 50% of India’s overall energy needs, is rapidly adopting green energy with large-scale solutions. We anticipate announcements that will accelerate the adoption of rooftop solar systems and open-access solutions, further propelling the shift towards green energy. This momentum will not only fuel economic growth and job creation but also attract foreign investments while helping industries meet their low-carbon emission goals.”

Kuldeep Jain, Managing Director of Cleanmax

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“Connectivity for evacuating power remains a major roadblock for solar developers and must be addressed by simplifying Right of Way (RoW) rules for power evacuation from solar projects. We hope the Union Budget 2025 proactively addresses these critical issues and clears the path for India’s renewable energy industry to contribute to Prime Minister Narendra Modi’s vision of Viksit Bharat powered by clean and sustainable energy.”

Anirudh Saraswat, Founder of Oriana Power 

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“There is a critical need for greater collaboration between industry and government to ensure that we are training the next generation of skilled workers who can support the expansion of renewable energy infrastructure and technology. Another key area requiring attention is the incentivization of energy storage systems. While last year’s PLI scheme was a commendable first step in supporting battery manufacturing, it is crucial that we accelerate efforts to boost this sector. By focusing on the development of storage systems, we can reduce dependence on imports and enhance the stability of India’s power grids. Stronger incentives in this area will support the growth of domestic manufacturing and is also critical in managing the fluctuations inherent in renewable energy production, ensuring a reliable and efficient energy supply for the nation.”

Ashish Agarwal, Head of Solar & Storage, BluPine Energy 

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“Last year was a landmark year for the residential solar sector.  It witnessed unprecedented growth driven by the government’s PM Surya Ghar Muft Bijli Yojana. The focus should be on ensuring that sufficient domestic manufacturing capacity is there to fulfill upcoming demand. In addition to this, the entire process of loan evaluation and disbursal for residential solar loans should be digitised. Finally, the government should further streamline/standardize/digitize approvals to speed up system installation and grid connectivity timelines.”

Saurabh Marda, Co-founder and MD, Freyr Energy

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“With the upcoming Union Budget, we eagerly anticipate the government’s continued emphasis on sustainability, especially in the renewable energy and electric mobility sectors. As India moves toward a sustainable future, we urge the government to continue incentivizing clean energy solutions and electric vehicles, which are integral to achieving energy security, reducing emissions, and fostering self-reliance.”

Rakesh Malhotra, Founder, Livguard Solar 

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“We expect the upcoming budget to accelerate the growth of the renewable energy sector. At AXITEC Energy India Pvt Ltd, we anticipate incentives for solar energy storage, green hydrogen, and grid-scale solar projects, which will help bridge the gap between India’s installed solar capacity of 60 GW and the ambitious target of 300 GW by 2030. Clarity on customs duty exemptions and GST reductions will also be crucial in making renewable energy more affordable. A supportive budget will propel India’s transition to a low-carbon economy.”

Tanmoy Duari, CEO, AXITEC Energy India 

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“While focus in creating domestic capacities in cell and module manufacturing has been a very welcome move in recent years, we are still fully dependent on import of equipment for manufacturing of these critical components, from abroad only. It is, therefore, time to start focusing on inhouse manufacturing of all equipment for cell and module lines in India only to help completely “made In India” status. The budget should provide for required regulatory and fiscal support for the same. This also applies to in-house manufacturing of critical equipment for green hydrogen like electrolysers etc.”

SK Gupta, CFO, AMPIN Energy Transition

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“The budget could play a pivotal role in creating a framework that simplifies access to capital for solar projects and encourages financial institutions to increase their participation in solar financing. Incentives for banks and financial institutions to provide low-interest loans, as well as risk-mitigation mechanisms, would be crucial to scale up rooftop solar adoption. Further, tax exemptions, subsidies, and rebates on solar installations will help reduce upfront costs for consumers and businesses, driving demand in both urban and semi-urban areas.”

Pratik Mandvia, Solar Business Head at Mufin Green Finance

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