UP FY 26-27 Budget: State Targets 22,000 MW Clean Energy with INR 2,104 Crore Outlay

Uttar Pradesh has allocated INR 2,104 crore for alternative energy development in its FY 26-27 Budget, more than doubling last year’s outlay, as the state accelerates its push towards clean and sustainable power.

Presenting the Budget for 2026–27, Finance Minister Suresh Khanna said that the UP government aims to make Uttar Pradesh a leading state in green and clean energy. Under the Solar Energy Policy-2022, State Bio-Energy Policy-2022 and Green Hydrogen Policy-2024, the state has set a target of generating 22,000 MW of electricity over the next five years through solar, bio-energy and green hydrogen projects.

Of the total allocation, INR 1,500 crore has been earmarked for the PM-KUSUM scheme to promote solar energy adoption among farmers and households. The budget also provides for the expansion of solar cities and compressed biogas (CBG) plants across urban and rural areas.

So far, Uttar Pradesh has installed 2,815 MW of solar power capacity. Seventeen municipal corporations, including Ayodhya and Mathura, are being developed as solar cities, while over 5.20 lakh solar street lights have been installed in rural areas.

Under the State Bio-Energy Policy, 36 compressed biogas plants have been set up in Uttar Pradesh, the highest in the country, strengthening waste management and clean fuel production. In green hydrogen, the state has approved two Centres of Excellence to promote research and industrial application of emerging clean energy technologies.

The government said  that the enhanced allocation reflects its commitment to energy security, environmental protection and long-term sustainable.