Bihar Renewable Energy Policy, 2025
23,968 MW
Cumulative RE Target by FY 2029-30
6,100 MWh
Cumulative Energy Storage Target
100%
Electricity Duty Exemption, up to 15 Years
5 Years
Policy Operative Period
Why the policy exists
Bihar has stepped up its climate-neutral ambition with a phase-wise strategy toward Net-Zero by 2070. Section 108 of the Electricity Act 2003 mandates the State to direct the Bihar Electricity Regulatory Commission on renewable energy promotion, including policy framework design. Notified vide Resolution No. 3239 dated 10.07.2025, this policy supersedes the 2017 Policy and runs 5 years from issuance.
Two scope limits matter before modelling anything. Benefits are not available to projects for which PPAs were signed before the policy came into effect. And while projects commissioned during the operative period are eligible for the declared incentives for 25 years from commissioning or the project's lifespan, whichever is earlier, that is subject to any specific incentive-wise duration stated in the policy — several are shorter.
Nodal agencies
| Agency | Role |
|---|---|
| BREDA | State Nodal Agency for all RE projects, except those assigned below |
| BHPC | State Nodal Agency for Hydro Power Projects |
| BSPGCL | State Nodal Agency for Pumped Storage; Implementing Agency for floating and ground-mounted Solar PV and Biomass projects above 1 MW, and all solar projects along canals and dams |
Targets to FY 2029-30
| Category | FY 25-26 | FY 26-27 | FY 27-28 | FY 28-29 | FY 29-30 | Cumulative |
|---|---|---|---|---|---|---|
| RE Target (MW) | 3,297 | 4,134 | 4,854 | 5,481 | 6,202 | 23,968 MW |
| Energy Storage (MWh) | 600 | 700 | 1,300 | 1,400 | 2,100 | 6,100 MWh |
| Utility-scale RE | 3,030 | 3,767 | 4,382 | 4,932 | 5,542 | 21,653 |
| Distributed RE (on-grid) | 232 | 312 | 407 | 467 | 557 | 1,975 |
| Off-grid RE | 35 | 55 | 65 | 82 | 103 | 340 |
Within utility-scale RE the largest allocations are other ground-mounted solar (18,448 MW cumulative), floating solar (495 MW), agri-voltaic solar (390 MW), biomass (340 MW) and wind (200 MW). Rooftop solar (500 MW) and small hydro (250 MW) lead distributed RE; grid-level battery storage (4,500 MWh) and pumped storage (1,600 MWh) make up the storage target. A shortfall in one technology area may be interchanged with another provided the total FY target is met.
Duty, tax and charge exemptions
| Incentive | Quantum and Duration |
|---|---|
| Electricity Duty | 100% exemption for captive and open-access consumers, reimbursed by the concerned utility, for 15 years from commissioning |
| State GST | 100% exemption on materials for RE projects and EV charging stations for 5 years, reimbursed by the Commercial Tax Department per GST Council recommendation |
| Open Access | Intra-state clearance for the full project tenure or 25 years, whichever is earlier; deemed open access if no Discom or Transcom response within 30 days |
| Stamp Duty / Registration | 100% reimbursement on lease, sale or transfer of industrial land or shed, first time only, after commercial production commences |
| Land Conversion Charges | 100% reimbursement of land-conversion and land-use-change fees, after commercial production commences |
| Transmission & Wheeling | 100% exemption for 15 years for intra-state consumption from commissioning; 20 years for grid-connected storage-linked projects selling power within the state |
| STU Charges | Exemption for captive and open-access consumers, per BERC regulations |
| Banking Charges | 100% banking of RE permitted across all 12 months for captive, open-access and scheduled consumers |
| Free Power / LADF | Not applicable for small hydel projects during the operative period |
Deemed industry status: all RE plants are treated as 'industry' under the prevailing Industrial Policy of Bihar and are eligible for available industrial incentives, with BREDA recommending sanction and disbursement. Where the Industrial Policy and this Policy are inconsistent, this Policy prevails.
- •RE-based manufacturing: priority allotment of government land in RE parks on long-term lease; electricity duty waived for 5 years; 100% stamp duty exemption; SGST-based incentive reimbursement to equipment manufacturers; and 100% reimbursement of customs duty on inputs for manufacturing solar equipment and battery storage for 5 years.
- •EV charging: government land at a 50% concessional rate to the first 1,000 stations or 50 MW, whichever is higher, installed within 5 years; 100% exemption on transmission and wheeling charges for 25 years for captive RE generation or open-access RE power drawn for EV charging.
- •Minimum Generation Compensation: a generator suffering loss due to grid failure, except for grid-security events, receives 100% × (Average Generation per hour × Backdown hours in the month × PPA Tariff).
- •Mandatory use: solar water heating for new houses, buildings, marriage halls, hotels and hostels above 350 sq. metres and for industries with fossil-fuel hot-water or steam boilers; large industries with connected load of 1,000 KVA and above must install solar PV to offset demand.
Thrust technology areas and tariff mechanism
- •Rooftop Solar up to 1,000 kWp: third-party sale allowed; tariff as approved by BERC or mutually agreed; Net, Virtual Net or Gross Metering; CAPEX, RESCO or Hybrid RESCO modes; no municipal approval required.
- •Other Solar PV (ground-mounted, floating, canal-top, agrivoltaic, elevated): no capacity limit subject to injection approval; Gross Metering; FiT or ceiling tariff for Discom sale, PPA on mutually agreed rates for third-party or captive use; minimum solar park size 20 MW.
- •Solar for agriculture: agri-voltaic plants, solarisation of agriculture feeders (no cap per feeder, maximum 5 MW per location), standalone solar pumps up to 10 HP, and solarisation of existing electric pumps at up to twice pump capacity, with Discoms purchasing surplus at BERC rates.
- •Bioenergy and waste to energy under the National Bioenergy Programme: no capacity limit subject to injection approval and bio-waste availability; Net Metering up to 1 MW, Gross Metering above.
- •Small hydro subject to BHPC approval via competitive bidding; wind with no capacity limit; pumped storage subject to BSPGCL or BHPC approval with BERC tariff including peak-demand tariff; hybrid RE with third-party sale allowed.
- •Other technologies: solar thermal for power and industrial heating; green hydrogen aligned with the National Green Hydrogen Mission; and geothermal pilot projects.
Useful life: 25 years for wind, biomass Rankine cycle, solar PV and thermal, biogas and biomass gasifier; 40 years for small hydro and pumped storage; 20 years for MSW/RDF-based power and geothermal. Tariff mechanisms include technology-wise Feed-in-Tariffs announced by BERC, a ceiling tariff for agriculture feeder solarisation, a Green Tariff at or below the average pooled RE purchase cost, and virtual or group net metering for consumers with rooftop constraints. RE generators retain 100% of carbon credit proceeds.
Application, funding and governance
| Plant Capacity | Processing Fee (non-refundable) |
|---|---|
| Below 10 kW | ₹1,000 |
| 10 kW to below 100 kW | ₹2,000 |
| 100 kW to below 500 kW | ₹5,000 |
| 500 kW to below 1,000 kW | ₹10,000 |
| 1 MW and above | ₹50,000 per MW, capped at ₹5 lakh per proposal |
Documents required: DPR, Startup India/Udyam/NSIC or industry-department certificate, firm registration certificate, GST certificate, PAN card, audited balance sheet for at least 1 year where applicable, and income tax return for at least 1 year. A dedicated Single Window Cell at BREDA processes statutory clearances within 60 days of proposal submission.
| Committee | Chair | Capacity | Frequency |
|---|---|---|---|
| District Level Screening Committee | District Magistrate / DDC | Below 1 MW at a single location | Monthly |
| State Level Screening Committee | Principal Secretary / Secretary, Energy | 1 MW to below 50 MW at a single location | Bi-monthly |
| State Level Empowered Committee | Chief Secretary | 50 MW and above at a single location; key bottlenecks and strategic decisions | Quarterly |
The Bihar Renewable Energy Development Fund finances all incentives, R&D, start-up support and capacity building — funded through State and Central allocations, application fees, RPO-default penalties, ECBC incentives and penalties, common-infrastructure charges, a contribution of 1 paise per unit from RE power sold in the state, CSR, NABARD/PFC/REC financing and NAFCC allocations. At least 50% of the year's required funds must be created within the first quarter. BREDA dedicates a minimum 5% of annual budget to R&D. Source: Bihar Policy for Promotion of Bihar New and Renewable Energy Sources 2025, Resolution No. 3239 dated 10.07.2025, Energy Department, Government of Bihar.