India’s clean energy future depends on making solar more accessible, especially for businesses and SMEs looking to make the switch. The upcoming Union Budget is an opportunity to remove financial barriers and encourage adoption.
One key step would be restoring 100% accelerated depreciation for solar investments—a policy that once made solar a more viable choice but was later reduced to 40%. Bringing it back would help businesses recover costs faster and drive wider adoption.
On the residential sector, the subsidy provided on systems could be replaced by income tax incentives which would remove the administrative burden of managing the subsidy mechanism. This could also get more people filing taxes.
Equally important is strengthening domestic solar manufacturing. Providing better infra support and tax breaks would be better than production-linked incentives.
