To what extent do subsidies hinder or enhance innovation in renewable energy industries in the UK and India?

Suveer Passi

Renewable energy innovation; Subsidies; Policy design; United Kingdom; India; Energy transition; Market efficiency; R&D investment.

Subsidies are central to the growth of renewable energy, but their impact on innovation is less clear. This paper examines how subsidies influence renewable energy industries in the UK and India - two nations with distinct economic contexts but shared climate ambitions. In the UK, market-based schemes such as Contracts for Difference have fostered offshore wind and hydrogen development, while India’s direct incentives under the National Solar Mission have rapidly expanded solar capacity. Both approaches reveal subsidies’ dual role: they reduce risks and encourage new technologies but can also create dependency, distort markets, and delay self-sufficiency. Through comparative analysis and case studies, this study argues that subsidies are most effective when linked to innovation outcomes and gradually phased out as technologies mature. Ultimately, carefully designed policies can transform subsidies from temporary support into drivers of long-term technological progress in clean energy.

Published Paper   E-Certificate

" To what extent do subsidies hinder or enhance innovation in renewable energy industries in the UK and India?", IJSDR - International Journal of Scientific Development and Research (www.IJSDR.org), ISSN:2455-2631, Vol.10, Issue 9, page no.b146-b158, September-2025, Available :https://ijsdr.org/papers/IJSDR2509120.pdf

Volume 10 Issue 9, September-2025

Pages : b146-b158

Paper Reg. ID: IJSDR_304843

Published Paper Id: IJSDR2509120

Downloads: 00065

Research Area: Others area

Country: New Delhi, Delhi, India

Published Paper PDF: https://ijsdr.org/papers/IJSDR2509120

Published Paper URL: https://ijsdr.org/viewpaperforall?paper=IJSDR2509120

ISSN: 2455-2631 | IMPACT FACTOR: 9.15 Calculated By Google Scholar | ESTD YEAR: 2016

An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 9.15 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator

Publisher: IJSDR(IJ Publication) Janvi Wave

This work is licensed under a Creative Commons Attribution 4.0 International License and The Open Definition