Loom’s View on the Road Ahead for Practical, Long-Term Clean Energy Growth
India’s renewable energy sector is at a turning point. After years of fast expansion, the focus is now shifting toward stability, reliability, and long-term performance. The Union Budget 2026–27 is expected to play an important role in setting the direction for how renewable energy projects are planned, financed, and executed in the years ahead.
From Loom’s perspective, this budget should focus less on short-term targets and more on building a strong foundation—one that supports dependable power supply, realistic project economics, and responsible growth across the sector.
A Shift from Fast Expansion to Sustainable Execution
Over the past decade, India’s renewable energy growth has largely been driven by speed and scale. Large targets and rapid installations helped renewables gain a strong position in the power sector. However, this approach has also highlighted challenges such as grid constraints, stressed project finances, and uneven asset performance.
The next phase of growth needs a more balanced approach. The industry is now looking for clear and consistent policies that support better project quality, predictable returns, and long-term asset health. This includes better coordination between generation, transmission, and storage planning.
At Loom, we believe long-term success in renewable energy depends on how well systems perform over time—not just how quickly capacity is added.
Tax and GST Reforms: Addressing Real Business Issues
Tax complexity remains one of the biggest operational challenges for renewable energy companies. Projects typically involve high upfront investment, long repayment cycles, and multiple vendors and service providers. Unclear or inconsistent tax treatment often leads to compliance difficulties and cash flow pressure.
The Renewable Energy Budget 2026–27 is expected to focus on:
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Simplifying tax compliance for capital-intensive projects
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Providing clearer GST treatment across equipment, batteries, and services
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Reducing working capital blockage caused by tax mismatches
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Avoiding situations that lead to double taxation
Such reforms can improve financial planning and make projects easier to execute. For companies like Loom, tax clarity also helps in offering transparent pricing and smoother project delivery.
Energy Storage: Improving Power Reliability
As renewable energy capacity increases, managing power availability becomes more important. Battery energy storage systems help address this challenge by storing excess power and supplying it when generation drops.
The Union Budget 2026–27 is expected to bring clearer guidelines for storage deployment. Industry expectations include:
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Financial support to improve the feasibility of storage projects
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GST rationalisation to reduce cost differences between storage solutions
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Long-term policy clarity for grid-connected and commercial storage systems
Loom sees energy storage as a practical requirement for reliable power delivery, especially for commercial and industrial users who need consistent electricity.
Solar Energy: Continuing as a Key Power Source
Solar power is expected to remain a major contributor to India’s renewable energy capacity. Its flexibility across residential, commercial, and utility-scale projects makes it suitable for widespread adoption.
The Solar Energy Budget 2026–27 is likely to focus on:
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Supporting domestic manufacturing of solar equipment
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Encouraging the use of higher-efficiency technologies
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Improving access to long-term project financing
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Strengthening grid connectivity and performance standards
For Loom, these measures support our focus on delivering reliable solar inverters, batteries, and integrated solutions that perform well under real operating conditions.
Wind Energy: Supporting Grid Balance
Wind energy continues to play an important role in balancing power supply, particularly during periods when solar generation is low. Properly planned wind projects can help improve overall power availability.
The Renewable Energy Budget 2026–27 may include provisions for:
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Upgrading older wind installations
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Encouraging combined wind and solar projects
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Improving transmission access in wind-rich areas
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Simplifying approval and clearance processes
These steps can help make better use of existing wind resources while supporting grid stability.
Green Hydrogen: Preparing for Industrial Demand
Green hydrogen is expected to receive continued attention as industries look for cleaner alternatives to conventional fuels. Budget support will be important to move pilot projects toward commercial scale.
Likely focus areas include:
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Support for domestic hydrogen technology development
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Incentives for manufacturing key components
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Clear financial support mechanisms for early-stage projects
For Loom, green hydrogen development must be closely linked with reliable renewable power and storage planning to ensure practical implementation.
Research, Development, and Skill Building
Ongoing improvement in technology and project execution depends on steady investment in research and workforce development. The upcoming budget is expected to encourage collaboration between industry and educational institutions.
Training and skill development will also be important to ensure that technicians, engineers, and project managers are prepared to work with evolving renewable energy systems.
Responsible End-of-Life Management
As more renewable energy systems are installed, managing equipment at the end of its useful life becomes increasingly important. Clear guidelines for recycling and disposal can help reduce environmental impact.
The Union Budget 2026–27 may introduce:
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Support for recycling facilities
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Guidelines for responsible disposal of panels and batteries
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Incentives for reuse and refurbishment where possible
Such measures will help ensure that renewable energy growth remains environmentally responsible.
Bioenergy and Compressed Biogas: Expanding Energy Options
Bioenergy, including compressed biogas, is gaining attention for its potential in waste management and decentralised power generation. Budget support in the form of easier financing and clearer tax treatment can improve project viability.
These initiatives can support rural development, reduce waste, and provide alternative energy sources for industry.
What the Renewable Sector Looks for in Budget 2026–27
As the industry prepares for the upcoming budget, key expectations include:
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Clear long-term policy direction
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Practical tax and GST reforms
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Support for storage, hydrogen, and emerging solutions
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Balanced attention to growth, reliability, and cost control
Conclusion: Loom’s View Going Forward
The Union Budget 2026–27 has the potential to address many of the practical challenges faced by the renewable energy sector. A well-structured budget can improve project execution, strengthen domestic manufacturing, and support steady growth.
At Loom, we remain focused on delivering dependable renewable energy solutions that meet real customer needs. With the right policy support, the sector can move forward with greater confidence and long-term stability.
