UP Budget Allocates Rs 21,040 mn For Solar And Green Hydrogen

18 Feb 2026 CW Team

The Uttar Pradesh government has proposed an allocation of Rs 21,040 million (mn) in its budget for the financial year 2026–27 to develop solar power, bio-energy and green hydrogen. The sum represents more than double the provision in 2025–26 and signals a strategic emphasis on energy security and sustainable growth. The package is aimed at positioning the state as a leader in clean energy within the next five years.

The budget sets a target of generating 22,000 megawatt (MW) of electricity through alternative sources over the coming five years under the Uttar Pradesh Solar Energy Policy-2022, the State Bio-Energy Policy-2022 and the Green Hydrogen Policy-2024. To date solar projects with a total installed capacity of 2,815 MW have been commissioned across the state, indicating policy measures are translating into action. Officials described the target as a means to reduce reliance on conventional power and to advance energy self-reliance.

A major portion of the new allocation has been directed towards the PM Kusum Suryaghar Scheme, with Rs 15,000 mn earmarked to support farmers and households in adopting solar pumps and rooftop systems. The scheme is expected to lower electricity costs, improve energy access in rural and semi-urban areas and provide additional income opportunities for farmers. Urban measures include development of 17 municipal corporations as solar cities while rural electrification has been expanded with about half a million solar street lights installed so far (0.52 mn).

In the bio-energy sector the state has established 36 compressed biogas plants, the highest number reported in the country, to manage agricultural and organic waste while generating clean fuel. The Green Hydrogen Policy-2024 has approved two Centres of Excellence to promote research and industrial use of green hydrogen technologies. The combined measures are designed to build a cleaner power system and to strengthen the state’s renewable energy base.

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