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POLICY AND ECONOMIC REPORT
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solar tariffs have drastically reduced, with a recent bid in Madhya Pradesh touching ?2.15 per unit,
compared to ?11 per unit earlier. However, he stressed the importance of battery storage solutions to
support large-scale renewable deployment.

Speaking on the role of decentralization, the Minister highlighted that PM-KUSUM and PM Surya Ghar
empower farmers to become “Urjadata” (energy providers), while also reducing transmission losses. He
urged banks to simplify financing processes, particularly for rooftop solar projects, and called for the
introduction of a Renewable Energy Financing Obligation to ensure dedicated funding for the sector,
similar to Renewable Purchase Obligations (RPOs) for discoms.

Shri Joshi underscored India’s leadership in green hydrogen (GH2), stating that the country has already
received major export orders and is ahead of several developed nations in this field. He noted that global
investors are increasingly looking at India as a preferred destination for manufacturing and clean energy
investments, recognizing its young workforce and strong industrial capacity.

The Minister also highlighted Prime Minister Modi’s directive to engage global financial institutions for
renewable energy investments, citing India’s recent success in securing commitments worth ?34.5 lakh
crore during a global RE summit in Gandhinagar. He emphasized that the transition to renewable energy
is not optional—it is a necessity. Concluding his address, Shri Pralhad Joshi called for a national movement
in renewable energy financing, stating that PM Surya Ghar is not just a scheme but an Andolan
(movement). He urged financial institutions to streamline lending processes, reduce unnecessary
compliance burdens, and adopt a more supportive approach towards financing clean energy projects.

Union Minister of State for Power and New & Renewable Energy Shri Shripad Y Naik said that achieving
500 GW of renewable energy by 2030 will require an investment of approximately ?30 lakh crore, covering
infrastructure, transmission, and storage systems. He urged the stakeholders to adopt innovative
financing models, extend flexible lending terms, and prioritize green investments that will accelerate our
energy transition.

In her context setting speech, Secretary MNRE Smt. Nidhi Khare emphasized the critical role of affordable
finance, green bonds, and innovative funding models in driving India’s renewable energy transition.

The National Workshop on Mobilizing Finance for Renewable Energy featured four key sessions focused
on addressing financing challenges in the renewable energy sector. The first session examined the
financing landscape for utility-scale renewable energy (RE) projects, assessing challenges faced by
developers, banks, and NBFCs in securing funding. Discussions covered interest rates, perceived risks, and
potential solutions for financial institutions to support large-scale RE projects. The second session focused
on financing new and emerging RE technologies, such as offshore wind, floating solar, and green
hydrogen. Panelists, including experts from NABARD, and leading financial institutions, discussed capital
allocation strategies, policy interventions, and mechanisms to reduce financial risks for private sector
investments in these technologies.

The third session addressed financing challenges for Distributed Renewable Energy (DRE) and innovative
RE applications, including rooftop solar, canal-top PV, and Agri-PV. Experts explored financing constraints

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