
Uttar Pradesh has announced a strong push towards renewable energy in its Budget for 2026–27, with a clear focus on solar power, bio-energy, and green hydrogen. Presenting the Budget, Finance Minister Suresh Khanna said the Yogi Adityanath-led government is moving quickly to position the state as a leader in green and clean energy. An allocation of around ₹2,104 crore has been proposed for the development of alternative energy sources. This amount is more than double the allocation made in 2025–26, highlighting the government’s emphasis on energy security, environmental protection, and sustainable growth.
Under the Uttar Pradesh Solar Energy Policy-2022, Uttar Pradesh State Bio-Energy Policy-2022, and Uttar Pradesh Green Hydrogen Policy-2024, the state has set a target of generating 22,000 MW of electricity over the next five years. The government believes this ambitious goal will help reduce dependence on conventional power sources and move the state towards energy self-reliance. Officials see this as a major step in building a cleaner and more sustainable power system.
The progress made so far shows steady movement in this direction. Solar power projects with a total installed capacity of 2,815 MW have already been commissioned across the state. This indicates that policy measures are being translated into action on the ground. The government has been working to expand both utility-scale and decentralised solar installations.
A major portion of the new allocation has been directed towards the PM Kusum Suryaghar Scheme. The Budget has earmarked ₹1,500 crore for the scheme, which aims to support farmers and households in adopting solar energy solutions. By promoting solar pumps and rooftop systems, the scheme is expected to reduce electricity costs and improve energy access in rural and semi-urban areas. The initiative is also seen as a way to increase farmers’ income and reduce their reliance on conventional power supply.
Urban areas are also being included in the renewable push. Seventeen municipal corporations, including Ayodhya and Mathura, are being developed as solar cities. The objective is to build strong solar-based infrastructure and increase the use of clean energy in cities. At the same time, rural electrification through renewable sources is expanding. So far, about 5.20 lakh solar street lights have been installed across villages, improving safety and basic services while lowering energy consumption.
In the bio-energy sector, Uttar Pradesh has made notable progress. Under the State Bio-Energy Policy-2022, 36 compressed biogas plants have been set up, the highest number in the country. These plants are helping manage agricultural and organic waste while producing clean fuel.
The state is also entering the green hydrogen space. Under the Green Hydrogen Policy-2024, approval has been granted to establish two Centers of Excellence. These centres are expected to promote research, innovation, and industrial use of green hydrogen technologies. With this multi-pronged approach, Uttar Pradesh is aiming to strengthen its renewable energy base and build a sustainable energy future.
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