Custom duty exemption on solar, renewable energy and e-mobility in the Union Budget 2026 is expected to give a new boost to rooftop solar, battery storage, EV manufacturing and green economy in Uttar Pradesh.
Lucknow. The concessions in custom duty and import duty related to solar, renewable energy and e-mobility in the Union Budget 2026 are being linked to the Pradhan Mantri Surya Ghar: Free Electricity Scheme in Uttar Pradesh and the emerging e-mobility ecosystem of the state. Policy experts believe that these decisions will move rooftop solar, solar panel manufacturing, grid-level energy balancing and electric mobility in a common direction.
Battery storage and grid balancing will get strength in Budget 2026
Budget 2026 exempts basic custom duty on raw materials used in lithium-ion battery manufacturing—cobalt powder, battery scrap and other critical minerals. According to experts, this will provide major benefits to grid-level battery storage and power system balancing. Fluctuations in solar energy production due to day and night and weather can now be better controlled through battery storage. This is expected to make Uttar Pradesh’s power supply more stable, reliable and affordable.
Rooftop solar will become cheaper due to custom duty exemption on solar glass
An important provision has been made in Budget 2026 for the solar sector. Sodium antimony, a raw material used in solar glass manufacturing, has been exempted from custom duty. It is a major component of solar glass, which increases its quality and strength. Removal of duty will reduce the cost of solar glass, solar modules and panels. Its direct benefit will be given to PM Surya Ghar: Free Electricity Scheme in Uttar Pradesh, where due to cheap rooftop solar, more houses will be able to connect to this scheme and there will be huge relief in electricity bills.
DCR based solar manufacturing will get a boost
The industry believes that these concessions will also strengthen Domestic Content Requirement (DCR) based solar panel manufacturing. Due to cheaper inputs, domestic manufacturing will become more competitive and dependence on imports will be reduced. Its positive impact can be seen in the form of expansion of solar value chain in Uttar Pradesh.
New possibilities for solar and EV investment from Noida to Purvanchal
After the budget provisions, investment opportunities related to new solar manufacturing units, EV components, battery pack assembly and charging infrastructure are expected to increase in the industrial areas of Noida, Lucknow, Kanpur and Purvanchal. This will give new impetus to employment generation as well as industrial activities.
E-mobility will get economical and fast expansion
From the point of view of e-mobility, Budget 2026 is being considered very important for Uttar Pradesh. Exemption in custom duty on batteries and critical minerals will reduce the manufacturing cost of electric vehicles. This will pave the way for faster adoption of e-bus, e-auto, electric two-wheelers and three-wheelers. As a result, dependence on petrol and diesel will reduce and urban pollution will also reduce.
UP’s integrated strategy towards green economy
The custom duty and import duty concessions in Budget 2026—particularly the exemption on sodium antimony for solar glass—provide a common strategic direction for solar manufacturing, grid-level energy balancing and e-mobility in Uttar Pradesh. Policy experts believe that with this coordinated approach, Uttar Pradesh will emerge as a leading state in green economy with affordable and clean power, clean transportation and strong energy grid.