UP FY27 Budget Allocates Rs21.04 bn For Renewables

17 Feb 2026 CW Team

Uttar Pradesh has proposed a marked increase in funding for alternative energy in its budget for 2026–27, allocating Rs21.04 billion (bn) for solar, bio-energy and green hydrogen. The finance minister indicated the allocation is more than double the prior year and forms part of a wider strategy to enhance energy security and sustainable growth. The sum is intended to accelerate deployment of clean technologies across urban and rural areas.

The state has reaffirmed policy frameworks including the Uttar Pradesh Solar Energy Policy 2022, the State Bio-Energy Policy 2022 and the Green Hydrogen Policy 2024 as the basis for expansion and has set a target to add 22,000 megawatts (MW) over the next five years. Officials reported that 2,815 MW have already been commissioned, signalling that policy measures are translating into on?the?ground capacity. The emphasis is on both utility?scale and decentralised projects to reduce reliance on conventional power.

A substantial portion of the new allocation has been earmarked for the PM Kusum Suryaghar Scheme, with Rs15 billion (bn) proposed to support farmers and households adopting solar pumps and rooftop systems. 17 municipal corporations, including Ayodhya and Mathura, are being developed as solar cities to strengthen urban solar infrastructure. Rural measures include the installation of about 0.52 million (mn) solar street lights across villages, which is expected to improve basic services and lower consumption.

In the bio?energy sector the state has established 36 compressed biogas plants, the highest number reported nationally, to manage agricultural and organic waste while producing clean fuel. In the green hydrogen domain approval has been granted for two Centres of Excellence to promote research, innovation and industrial application. The combined approach is intended to build a cleaner, more resilient power system and to support long?term economic and environmental objectives.

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