["Natural Resources Forum, EarlyView. ", "\nABSTRACT\nOne of India's strategic goals is to boost the country's use of renewable energy; however, limited empirical insight exists on how the financial sector influences this transition. This study explores the intricate relationship between financial development and renewable energy generation, focusing on the differentiated roles of financial institutions and financial markets in India. Employing the Autoregressive Distributed Lag (ARDL) approach over the period 1990–2019, the study justifies its methodology due to the mixed order of integration revealed through unit root tests and the need to model both short‐run and long‐run dynamics. Additionally, a structural break in the data identified through the Chow test reinforces the appropriateness of using ARDL for robust inference. The results confirm the existence of a stable long‐run equilibrium relationship among the variables, as shown by the ARDL bounds F‐test. Empirical findings demonstrate that financial institutions exert a statistically significant and positive influence on renewable energy deployment in the short and long run. At the same time, financial markets also contribute positively, albeit to a lesser extent. These findings have significant policy implications: enhancing the depth and efficiency of financial institutions could accelerate India's renewable energy goals. In light of these results, the study advocates for targeted financial sector reforms, improved regulatory frameworks, and supportive investment mechanisms to bridge financial gaps in clean energy sectors. The insights offer valuable guidance for policymakers to align financial development strategies with India's sustainable development and energy transition objectives.\n"]