The Bihar government today announced the launch of its Renewable Energy (RE) Policy 2025, laying out one of the most comprehensive and investor-friendly frameworks for green energy development in the country. Aimed at accelerating renewable energy deployment and drawing substantial private sector participation, the policy offers a wide range of fiscal, procedural, and infrastructure-based incentives that position Bihar as a highly competitive destination for RE investments.
Speaking at the policy launch, state officials highlighted that with the Central Government’s free ISTS (Inter-State Transmission System) regime nearing its end, investors must act promptly to leverage Bihar’s unmatched policy benefits and enter a market poised for high returns. The state projects an RE demand of around 23 GW by 2029-30, as per its Resource Adequacy Plan prepared by the Central Electricity Authority (CEA), assuring developers of a large and growing consumer base.
Key Highlights of Bihar RE Policy 2025:
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Single Window Clearance: Streamlined approval processes through a unified portal to cut bureaucratic delays.
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100% SGST Reimbursement: Full refund of state GST to eligible renewable energy developers.
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Stamp Duty & Registration Fee Exemption: Complete reimbursement of stamp duty and registration fees on lease, sale, or transfer of project-related properties.
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Land Conversion Fee Reimbursement: Developers will receive 100% reimbursement of land conversion charges.
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Electricity Duty Waiver: Full exemption from electricity duty for a period of 15 years.
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Open Access for 25 Years: Developers will enjoy uninterrupted access to consumers for 25 years.
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Transmission & Wheeling Charge Exemption: Projects are exempt from transmission and wheeling charges within the state.
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STU Charges Waived: All State Transmission Utility charges are waived off.
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Transmission Infrastructure Support: Transmission and distribution costs up to 10 km will be fully covered by state utilities. For distances beyond 10 km, costs will be equally shared by the state and developers.
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Separate Feed-in Tariffs: Tariffs will be determined for different RE technologies, ensuring viability across solar, wind, biomass, and emerging technologies.
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“Must Run” Status: All RE projects will be accorded must-run status, ensuring they are not curtailed without valid grid safety reasons.
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Minimum Generation Compensation: Compensation mechanisms will be in place to protect developers from grid unavailability or curtailment.
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Energy Banking: Flexible energy banking mechanisms will be enabled to manage surplus generation.
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Payment Security Mechanism: Financial assurances to ensure timely payments to power producers.
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Deemed Industry Status: All RE projects will automatically be treated as industrial undertakings, simplifying compliance and regulatory approvals.
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Priority Allotment of Government Land: Government-owned land will be provided on a long-term lease for setting up manufacturing and energy infrastructure.
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Carbon Market Participation: Developers can claim carbon credits under UNFCCC or any Government of India-approved mechanism.
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Dedicated R&D Allocation: A minimum of 5% of the total renewable energy budget will be earmarked for research and development activities in the state.
The policy is designed to cater to both generation and manufacturing sectors in renewable energy, including solar PV, wind, biomass, waste-to-energy, and green hydrogen. By offering long-term visibility, assured market demand, and fiscal incentives, the Bihar RE Policy 2025 signals the state’s ambition to become a leader in India’s energy transition.
With global and domestic players looking for stable and pro-growth policy environments, Bihar’s latest move is expected to attract major capital inflows and technological partnerships in the coming years.
Courtesy:- Government of Bihar, Energy Department.
