- More than double the allocation compared to the previous financial year 2025-26 for development of alternative energy sources
- Double focus on solar, bio-energy and green hydrogen; target of 22,000 MW generation
Lucknow: In the Budget speech for the financial year 2026-27, Finance Minister Suresh Khanna stated, “The Yogi government is moving rapidly towards making Uttar Pradesh a leading state in the field of green and clean energy. A provision of around ₹2,104 crore has been proposed for the development of alternative energy sources, which is more than double the allocation of the previous financial year 2025-26. This reflects the state’s commitment to energy security, environmental protection and sustainable development.”
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. This is considered a significant step towards reducing dependence on conventional energy sources and making Uttar Pradesh an energy self-reliant state.
So far, solar energy projects with a total capacity of 2,815 MW have been installed in the state. This achievement shows that the government is active not only in policy formulation but also in effective implementation.
The “PM Kusum Suryaghar Scheme” is being implemented extensively across the state. A provision of ₹1,500 crore has been proposed in the budget, which will accelerate efforts to make farmers and household consumers self-reliant through solar energy.

Seventeen municipal corporations, including Ayodhya and Mathura, are being developed as solar cities. This initiative aims to strengthen solar-based infrastructure in urban areas and ensure wider access to clean energy. In rural areas, 5.20 lakh solar street light systems have been installed so far, improving safety and basic amenities while saving energy.
Under the “Uttar Pradesh State Bio-Energy Policy-2022”, 36 CBG (Compressed Biogas) plants have been set up in the state, the highest number in the country. This has promoted both waste management and clean fuel production.
Uttar Pradesh has also taken pioneering steps in the field of green hydrogen. Under the “Green Hydrogen Policy-2024”, approval has been granted for the establishment of two “Centers of Excellence” in the state. This initiative will promote research and industrial application of future clean energy technologies.


