The government of Karnataka has presented an ambitious energy roadmap in its latest state budget, with a strong focus on expanding solar power, strengthening grid infrastructure, and encouraging electric mobility. The strategy reflects the state’s broader commitment to accelerate the transition toward clean and sustainable energy while ensuring reliable power supply for consumers and industries.
A major highlight of the plan is the launch of the “Mukhya Mantri Saura Krishi Yojane,” a scheme aimed at increasing solar energy generation in the state. Under this initiative, Karnataka plans to install solar power plants with a combined capacity of 3,000 MW. These plants will be developed at sub-centres operated by Karnataka Power Transmission Corporation Limited (KPTCL). The projects will follow the Renewable Energy Service Company (RESCO) model, allowing private developers to build and operate the facilities. The government estimates that the total investment required for this initiative will be around ₹10,500 crore. The concept is similar to the central government’s Kusum-C scheme, which promotes solar installations near agricultural feeders to provide clean electricity for farming activities.
Recognizing the challenges of renewable energy variability, the state government has also proposed large-scale battery storage development. Around ₹3,400 crore has been allocated for Battery Energy Storage Systems (BESS). These storage units are planned at key substations in Huliyur, Pavagada, and Kushtagi. The storage facilities will help balance electricity supply and demand, ensuring grid stability when solar power generation fluctuates due to weather conditions or time of day.
In addition to renewable energy generation and storage, the state plans to expand its transmission and distribution infrastructure. The government has announced plans to build 100 new substations during the 2026–27 financial year to support rising electricity demand and improve power delivery across the state.
The budget also includes a significant push toward electric mobility. A total of ₹777 crore has been allocated to install 1,250 electric vehicle charging stations in public areas. State Energy Minister K. J. George stated that although electricity generation capacity has grown in recent years, strengthening infrastructure such as substations remains essential to deliver power efficiently.
To promote innovation in the clean energy sector, the government will establish a renewable energy incubation centre with a budget of ₹20 crore. The centre will be developed in collaboration with leading institutions including IISc, IIM Bangalore, and the University of New South Wales.
At the same time, traditional power subsidies continue to account for a large portion of the energy budget. The government has allocated about ₹19,290 crore to support electricity supply for agricultural pumpsets, while ₹10,578 crore has been earmarked for the Gruha Jyothi free electricity scheme.
D.V. Manjunatha, Founder and CMD, Emmvee Photovoltaic Power Limited, said “The Karnataka government’s budget announcements for the solar and energy sector are a very positive and forward-looking step. The proposed 3,000 MW solar power scheme under the KUSUM-C model is especially significant because it links clean energy growth with the needs of the agriculture sector, while also creating a stronger distributed renewable ecosystem in the state. Alongside this, the allocation for battery energy storage is an important signal that the state is thinking not just about capacity addition, but also about grid reliability and long-term energy resilience. For Karnataka, which was among the early leaders in renewable energy, this marks an important moment to regain momentum and reinforce its leadership in the sector. As an Integrated solar manufacturer based in the state, we see this as an encouraging development and remain committed to supporting the larger clean energy transition.”
Sanjeev Aggarwal, Founder & Executive Chairman, Hexa Climate, said, “Karnataka’s budget is a welcome and ambitious step, with the 3,000 MW solar scheme, ₹3,400 crore for battery storage, and 100 new substations showing that the state understands the full stack of what the energy transition demands. But for IPPs and long-term investors, the real test now is execution. The sector has seen enough well-intentioned announcements lose momentum in implementation. What the industry needs today is not more targets; it is the sanctity of contracts, predictable off-take, and the assurance that policy frameworks will not shift mid-project. Karnataka has the opportunity to lead not just in megawatts but in becoming a benchmark for how Indian states can be trusted partners for clean energy capital.”
Industry observers and domestic solar manufacturers have welcomed the initiatives, noting that the combined focus on solar generation, energy storage, infrastructure expansion, and electric mobility could strengthen Karnataka’s position in India’s clean energy transition.
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