“Uttar Pradesh is accelerating its clean energy transition with significant funding for green projects in 2025. The state’s initiatives focus on solar, wind, and green hydrogen, supported by government policies and private investments. These efforts aim to meet India’s 2030 renewable energy goals, create jobs, and reduce carbon emissions, positioning UP as a key player in India’s sustainable energy landscape.”
Uttar Pradesh Powers Ahead with Green Energy Investments
In 2025, Uttar Pradesh (UP) is emerging as a pivotal hub in India’s clean energy transition, driven by substantial funding and strategic policies aimed at bolstering renewable energy projects. The state government, in alignment with India’s ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030, has allocated significant resources to promote solar, wind, and green hydrogen initiatives. These efforts are not only transforming UP’s energy landscape but also contributing to job creation and environmental sustainability.
The UP government has rolled out several schemes to incentivize clean energy adoption. The state’s Solar Energy Policy 2022 continues to drive investments, offering subsidies and tax benefits for solar projects. As of August 2025, UP has installed over 2,500 MW of solar capacity, with an additional 1,200 MW in the pipeline, according to the Ministry of New and Renewable Energy (MNRE). The PM Surya Ghar: Muft Bijli Yojana, a central government scheme, has gained traction in UP, with over 5 lakh households benefiting from free solar electricity as of August 14, 2025, backed by subsidies worth Rs 2,500 crore.
Private sector participation is also on the rise. Companies like Tata Power and Adani Green Energy have announced multi-crore investments in UP’s renewable sector. Adani Green Energy’s 200 MW solar project in Chitrakoot, valued at Rs 1,500 crore, is set to generate 300 direct jobs and power over 1 lakh homes. Similarly, Tata Power’s collaboration with the UP Power Corporation Limited (UPPCL) for a 150 MW wind-solar hybrid project in Varanasi underscores the state’s growing appeal for clean energy investors.
Green hydrogen, identified as a “sunrise sector” by the central government, is another focus area. UP has earmarked funds for establishing a green hydrogen hub in Gorakhpur, with an investment of Rs 1,200 crore. This project, expected to be operational by mid-2026, aims to produce 500 tonnes of green hydrogen annually, reducing carbon emissions by an estimated 3,000 tonnes per year. The state is also exploring pumped storage projects to address intermittency issues in renewable energy supply, with two projects worth Rs 3,000 crore under development in Bundelkhand.
The state’s clean energy push is bolstered by central government initiatives. The Union Budget 2025-26 allocated Rs 25,649 crore to the MNRE, a 39% increase from the previous year, with UP poised to receive a significant share for its renewable energy projects. The PM-KUSUM scheme, which promotes solar pumps for agriculture, has seen UP install over 1.5 lakh solar pumps, cutting diesel consumption and reducing CO2 emissions by approximately 1 million tonnes annually.
Despite these advancements, challenges persist. Power distribution companies (discoms) in UP face financial strain, with unpaid dues to renewable energy generators exceeding Rs 2,000 crore as of March 2025, according to the International Energy Agency (IEA). Grid limitations and reliance on imported critical minerals like lithium and cobalt also pose risks to project scalability. To address these, the UP government is working on improving grid infrastructure and promoting domestic manufacturing of solar modules and batteries under the Production Linked Incentive (PLI) scheme.
Foreign direct investment (FDI) in UP’s clean energy sector has surged, with over $500 million received in 2024-25, particularly in solar photovoltaic (PV) projects. The state’s proactive policies, coupled with its vast land availability and high solar radiation (averaging 5.5 kWh per square meter daily), make it an attractive destination for investors. Cities like Lucknow and Kanpur are emerging as clean energy innovation hubs, fostering startups focused on energy storage and electric mobility.
UP’s clean energy initiatives are also creating significant socio-economic benefits. The renewable energy sector has generated over 10,000 direct and indirect jobs in the state in 2025 alone, with solar panel installation and maintenance being key employment drivers. The state’s focus on decentralized energy systems, such as rooftop solar, is empowering rural communities, reducing energy costs, and enhancing energy access in remote areas.
As India celebrates achieving 50% non-fossil fuel capacity five years ahead of its 2030 target, UP’s contributions are notable. The state’s renewable energy capacity reached 4,500 MW by October 2024, accounting for nearly 10% of India’s total renewable capacity of 203.18 GW. With continued investments and policy support, UP is well-positioned to play a leading role in India’s journey toward net-zero emissions by 2070.
Disclaimer: This article is based on recent news, reports, and data from sources including the Ministry of New and Renewable Energy (MNRE), the International Energy Agency (IEA), and industry announcements. Information is accurate as of September 2025, but project timelines and financial figures are subject to change. Readers are advised to verify details with official sources before making investment decisions.