Maharashtra Clarifies Renewable Energy and Storage Policy Targets

The Maharashtra government has issued clarifications on the implementation of its Renewable Energy and Energy Storage Policy 2025-26 to 2035-36, covering project transition from earlier policies, mandatory battery storage requirements and eligibility for developing Renewable Energy Industrial Zones.

The Energy Department issued the Frequently Asked Questions (FAQs), Version 1.0, in August 2026. The document provides clarification on nine issues under the policy, which was notified on March 18, 2026.

Under the clarification, renewable energy projects that had received in-principle grid connectivity approval before March 18, 2026, will continue to be governed by the 2015 or 2020 renewable energy policy, as applicable. These projects cannot opt to register under the new renewable energy and energy storage policy.

Projects that had applied through the Maharashtra Energy Development Agency’s Single Window Portal but had not been registered will also be classified based on their grid connectivity status. Projects without prior in-principle grid connectivity approval will come under the new policy.

The department has also clarified the mandatory storage requirement for new renewable energy projects. Projects above 100 kW will have to provide storage equivalent to at least 50 percent of their renewable energy capacity for two hours. This amounts to a minimum storage requirement of 1 MWh per MW of grid connectivity.

For hybrid renewable energy projects using separate connectivity points, the storage requirement will apply at each connectivity point. Projects supplying renewable energy to pumped storage projects, however, will not have to install co-located energy storage for the renewable energy capacity contracted for supply to the pumped storage project, subject to the conditions specified by the policy.

The FAQ also permits storage to be installed at a common pooling substation serving multiple renewable energy projects. Such arrangements will be allowed provided metering systems enable verification of captive status, deviation settlement mechanism requirements and individual project-level energy accounting.

Developers will have flexibility in sizing battery energy storage systems while meeting the prescribed overall storage requirement. However, the BESS power rating cannot be less than 25 percent of the renewable energy project's connectivity. For projects seeking electricity duty exemption under the policy, the minimum storage capacity will remain 2 MWh per MW of renewable energy connectivity, with flexibility in the BESS power rating subject to the prescribed limit.

The department has further clarified that renewable energy projects covered by the new policy and requiring BESS will have to commission the storage system along with the renewable energy capacity. For projects commissioned in phases, the corresponding proportion of BESS capacity will also have to be commissioned with each phase.

On Renewable Energy Industrial Zones, the department said that the current policy allows such zones to be developed by state public sector undertakings, joint ventures between state and central PSUs, and public-private partnership models involving state PSUs and private sector entities.

The FAQ clarified that RE parks developed entirely by private players through 100 percent private investment will not qualify for the state’s budgetary support under the policy. The policy provides aggregate budgetary support of INR 500 crore to designated state REIZ developers or joint ventures involving state PSUs.