Bihar Unveils Renewable Energy Policy 2025, Targets 24 GW of RE and 6.1 GWh of ESS by 2030
The Government of Bihar has unveiled its Renewable Energy Policy 2025, targeting 23.97 GW of RE capacity and 6.1 GWh of energy storage by FY 2030. The policy doles out several incentives including 100 percent exemption on electricity duty, SGST, transmission and wheeling charges for 15–20 years.
July 11, 2025. By Mrinmoy Dey
The policy, effective for five years from the date of issuance, encompasses a wide range of technologies including solar (rooftop, ground-mounted, floating, agrivoltaic, canal-top), wind, small hydro, biomass, waste-to-energy, green hydrogen, and energy storage systems like battery and pumped hydro.
The policy document has mentioned that the state aims to install over 21.65 GW of utility-scale RE, 1.97 GW of distributed RE, and 340 MW of off-grid solutions by 2030. Interestingly, energy storage has been given due push and the policy has set an ambitious target of 6,100 MWh capacity for energy storage. This includes 4,500 MWh of grid-level battery systems and 1,600 MWh of pumped storage projects.
The policy offers a comprehensive suite of fiscal and regulatory incentives including 100 percent exemption on electricity duty, SGST, transmission and wheeling charges for 15–20 years, along with stamp duty waivers, open access benefits, and banking provisions for RE developers.
The policy offers 100 percent exemption on electricity duty to captive/open access consumers on consumption of power from RE projects set-up within the state for 15 years. “100 percent exemption from the payment of SGST for all the materials required for development of RE projects and EV charging stations will be provided by the Commercial Tax Department for a period of 5 years,” it said.
It also offers 100 percent reimbursement of stamp duty/registration fees levied on lease/sale/transfer of industrial land/shed to all the new units after the unit commences the commercial production. Land conversion fees will also be reimbursed.
“Exemption of 100 percent on transmission and wheeling charges on RE projects developed for power consumption within the state for a period of 15 years from date of commissioning of the project. Grid connected RE projects with storage systems selling power within the state will attract higher exemption from transmission and wheeling charges for a period of 20 years,” it said.
It further added that banking of 100 percent of RE will be permitted for all captive and open access/scheduled consumers during all 12 months of the year.
It further emphasised that RE projects will enjoy ‘must-run’ status, with provisions for minimum generation compensation in case of curtailment due to grid failures not linked to safety or security concerns.
Interestingly, a special thrust has been placed on agrivoltaics, feeder-level solarisation, and standalone solar pumps, aiming to boost rural incomes without compromising on agricultural productivity.
Further, the policy also aims to give impetus for the creation of solar and RE equipment manufacturing hubs, promote innovation through a dedicated Bihar Energy Research and Management Institute, and earmark 5 percent of its RE budget for R&D.
The policy encourages the setup of RE-based EV charging stations. The policy offers 50 percent concessional land rates for the first 1,000 stations and exemption from transmission and wheeling charges for 25 years.
The policy identifies Bihar Renewable Energy Development Agency (BREDA) as the nodal agency for most RE projects, while specific roles are delegated to BHPC and BSPGCL for hydro and pumped storage developments. A Single Window Clearance System under BREDA will ensure all project-related approvals are granted within 60 days, it mentioned.
Bihar also plans to develop its own carbon credit and trading platform and extend support for Renewable Energy Certificate (REC) registration for qualifying projects.
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