Bihar has set a target to install a cumulative 23.9 GW of renewable energy capacity, including 22 GW of solar, and 6 GWh of energy storage by the end of the financial year (FY) 2030, according to the Bihar Policy for Promotion of New and Renewable Energy Sources 2025.

Renewable energy projects commissioned until FY 2030 will be eligible for incentives for 25 years or the lifespan of the power project, whichever is earlier.

The state will also establish a single-window cell to expedite the projects’ time-bound approval.

Commercial renewable energy projects must pay the following application charges per capacity:

• Less than 10 kW – ₹1,000 (~$11.64)
• Between 10 kW and 100 kW – ₹2,000 (~$23.29)
• Between 100 kW and 500 kW – ₹5,000 (~$58.24)
• Between 500 kW and up to 1 MW – ₹10,000 (~$116.49)
• Projects of 1 MW and above – ₹50,000 (~$582.48)/MW and up to a maximum of ₹500,000 (~$5,824.8) per proposal

The Bihar Renewable Energy Development Agency (BREDA) will serve as the state’s nodal agency for renewable energy projects. The Bihar State Power Generation Company will be the nodal agency for pumped storage projects. It will also be the implementing agency for the development of floating/ground-mounted solar projects and such projects along canals and dams.

Any ground-mount solar project or reservoir integrated with a rooftop project of up to 1 MW will be considered a rooftop solar power project under this policy. Such projects can avail themselves of net-metering/virtual net metering/gross metering facilities.

Only gross metering will be permitted for solar projects, except for rooftop projects.

Rooftop solar projects will be mandated for all government buildings. Government departments can transfer land to the Bihar Industrial Area Development Authority (BIADA) for allocation to solar projects on a rental basis.

Solar projects with an operational life of 25-30 years will be allotted land from BIADA or outside BIADA on a lease basis.

According to the policy, a solar park must have a minimum capacity of 20 MW.

The state will promote decentralized and distributed renewable energy projects to create livelihood opportunities, per the Ministry of New and Renewable Energy guidelines.

The policy has decided 25 years as the useful life for wind and solar projects. The useful life of pumped storage projects is estimated to be 40 years.

The state load dispatch centers must ensure that renewable energy projects are on must-run status. Priority feeders will be mandated for with renewable energy projects exceeding 1 MW and one power project of at least 500 kW.

Developers with a capacity of at least 500 kW must share the details of their projects with the state dispatch load center and obtain a signature on these details from a distribution company (DISCOM).

For renewable power generation losses from projects developed within Bihar due to grid failure, the generator will be eligible for a minimum compensation from the power procurer. However, there will be an exception in cases involving consideration of grid security or the safety of any equipment or personnel.

The grid integration will be in accordance with the Central Electricity Authority’s ‘Technical standards for connectivity to the Grid (Amendment) Regulations, 2019’.

Mandates for Buildings

The policy will also mandate the use of solar water heating systems for new houses/buildings/marriage halls/hotels/hostels, and other similar establishments with an area of over 350 sq m.

The installation of solar water heating systems will be mandatory for industries that use hot water boilers or steam boilers powered by fossil fuels.

Large industries with a connected load of at least 1,000 kVA must install a solar project to offset their electricity demand.

Land Allocation

Project developers must acquire land for solar projects. However, in cases where the state government owns the land, the allotment will be made in accordance with the prevailing government policy.

BREDA will also create a district-wise Resource Information Bank listing available land, which will be made accessible online through its website.

Incentives for Renewable Energy Projects

Captive/open access consumers can avail 100% exemption on electricity duty. They can also avail themselves of reimbursement for electricity duty for 15 years.

The development of renewable energy projects and electric vehicle charging stations will be eligible for a 100% exemption from payment of State Goods and Service Tax (SGST) for up to five years.

Project developers will be granted intrastate, open access clearance for the project’s lifespan or 25 years, whichever is less.

If the DISCOMs fail to provide intimation to the renewable power generation within 30 days, the application will be deemed as an open access project.

First-time renewable energy developers can avail themselves of 100% reimbursement of stamp duty/registration fees levied on the lease/sale transfer of industrial land/shed. The incentive will also apply to new projects outside BIADA’s jurisdiction after the commencement of commercial production.

Any existing renewable energy projects increasing their capacity will be treated as new projects.

Project developers can receive 100% reimbursement of land conversion fees/change in land use fees being levied for the conversion of agricultural land after the renewable energy project commences commercial production.

The projects will receive a 100% exemption on transmission and wheeling charges for up to 15 years. Grid-connected renewable projects with storage will receive exemption from transmission and wheeling charges for 20 years.

Exemption from state transmission utility charges will be provided to captive/open access consumers for the consumption of power from renewable projects.

All captive and open access/scheduled consumers can bank 100% of their renewable energy throughout the year.

The state may introduce time-of-use renewable energy feed-in tariffs to encourage renewable projects and storage operators to inject energy into the grid during high-demand periods.

To encourage consumers to opt for green energy, the state may introduce a ‘green tariff’ for all consumers, including those in the extra high voltage, high voltage, and low voltage categories.

The green tariff rate will be either lower than or equivalent to the average pooled power purchase cost from different renewable energy sources to encourage early adopters.

The renewable energy generator will retain the entire proceeds of the carbon credits from an approved Clean Development Mechanism project or mechanism under the United Nations Framework Convention on Climate Change or any other mechanism developed by the Indian government.

The state will also develop its own carbon credit and trading platform.

All renewable energy projects in Bihar can avail subsidy under the prevailing Industrial Policy of Bihar. The provisions of the Bihar Renewable Energy Policy will prevail in the event of inconsistencies.

Incentives for  EVs

For the setting up of renewable energy-based electric vehicle (EV) charging stations within the policy period, government land will be allotted at a 50% concessional rate to the first 1,000 applicants or 50 MW, whichever is higher.  The EV charging stations must be installed within five years of the policy’s issue.

Charging station service providers setting up captive renewable projects or availing themselves of renewable power under open access can obtain a 100% exemption from normal transmission and wheeling charges for up to 25 years.

A chain of EV charging stations owned by a single service provider can also receive the same benefits.

The Bihar Electricity Regulatory Commission will decide the electricity tariff applicable for all public and captive charging stations for commercial use.

Incentives for Manufacturing Plants

The Bihar government will provide the following incentives for renewable energy-based manufacturing plants:

• Priority allotment of government land in solar parks/other renewable energy parks on a long-term lease basis
• A 100% waiver on electricity duty for setting up renewable energy-related manufacturing plants and other related components for five years
• A 100% exemption on stamp duty
• Reimbursement of SGST-based incentive for all renewable energy equipment manufacturers
• A 100% reimbursement of customs duty paid on input required for manufacturing equipment for solar, renewable energy, and battery storage for five years

The policy also mandates the recording and collection of real-time data on renewable energy projects. The data will be collected and presented on the state’s web portal.

Once implemented for grid-connected renewable energy projects, the data monitoring mandate will also be extended to off-grid and decentralized projects.

The state government will also set up ten weather stations, with support from the National Institute of Wind Energy, at locations suitable for various renewable energy projects and proposed solar parks.

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