The Union Budget 2026’s customs duty and import tariff concessions on solar, renewable energy, and e-mobility are closely linked with Uttar Pradesh’s “Prime Minister Surya Ghar: Free Electricity” scheme and the state’s growing e-mobility ecosystem.
Policy experts believe these measures will collectively advance rooftop solar expansion, solar panel manufacturing, grid-level energy balancing, and electric mobility in the state.
The budget grants exemptions on basic customs duty for critical raw materials used in lithium-ion battery production, such as cobalt powder, battery scrap, and other essential minerals. Experts say the biggest benefit will be seen in grid-level battery storage and power system balancing. Battery storage will help manage the fluctuations in solar power generation caused by changes in time and weather, making Uttar Pradesh’s electricity supply more stable, reliable, and cost-effective.
An important budget provision exempts customs duty on sodium antimonate, a key raw material used in the manufacture of solar glass. This component improves the quality, strength, and performance of solar glass. Removing the duty will reduce the cost of solar glass and, consequently, solar modules and panels. This will directly benefit the Prime Minister Surya Ghar scheme, enabling more households to adopt rooftop solar systems and enjoy significant relief in electricity bills.
Industry experts point out that the concessions will strengthen domestic content requirement (DCR)-based solar panel manufacturing. Lower costs of solar glass and other inputs will boost the competitiveness of local manufacturing and reduce dependence on imports. This may lead to the expansion of the solar value chain within Uttar Pradesh.
Following the budget announcements, there is an expectation of increased investment opportunities in new solar manufacturing units, electric vehicle components, battery pack assembly, and charging infrastructure across industrial hubs in Noida, Lucknow, Kanpur, and Purvanchal. This is likely to accelerate job creation and industrial development.
From an e-mobility perspective, the budget is seen as highly significant for Uttar Pradesh. Customs duty exemptions on batteries and critical minerals will lower the manufacturing cost of electric vehicles, making EVs more affordable. Experts believe this will encourage faster adoption of electric buses, e-autos, and electric two- and three-wheelers, reducing reliance on petrol and diesel and helping curb urban pollution.
The customs duty and import tariff reliefs, especially the exemption on sodium antimonate for solar glass, provide a unified strategic direction for solar panel manufacturing, grid-level energy balancing, and e-mobility in Uttar Pradesh.
Policy experts say this integrated approach will help Uttar Pradesh rapidly move towards affordable and clean electricity while establishing itself as a leading state in clean transportation, a robust energy grid, and a green economy.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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