Bihar renewable energy policy 

 Bihar Renewable Energy Policy 2025 

Issued by : Government of Bihar, Energy Department

Resolution Number : 3239

Date : 10-July-2025

Title : Bihar Policy for Promotion of Bihar New and Renewable Energy Sources 2025

 

Key points related to Solar Photovoltaic Power Plants are noted below from the policy document specified above.

 

Scope of This Policy

The scope of this policy is limited to Renewable Energy (RE) and Energy Storage Projects, including but not limited to :

1. Solar (Photovoltaic, Thermal)
2. Hydro
3. Wind
4. Energy Storage (Battery, Pumped Hydro)
5. Waste to Energy
6. Green Hydrogen
7. Green Ammonia
8. Geothermal Technology
9. Any other renewable energy technology recognized by MNRE / BREDA

 

Operative Period

1. This policy is applicable for five years or will remain in force till a new policy is issued.
2. Projects commissioned during this period will be eligible for incentives for 25-years from the date of commissioning or for the life span of energy project, whichever is earlier. 

 

Nodal Agency

1. Bihar State Hydroelectric Power Corporation Limited (BSHPCL) for Hydro Power Projects

2. Bihar State Power Generation Company Limited (BSPGCL) for Pumped Storage Projects, floating / ground mounted Solar PV Projects and Biomass Power projects above 1MW and all solar power projects along canals and dams across the state.

3. Bihar Renewable Development Agency (BREDA) for all other projects.

 

Eligible Entities

1. Registered Companies
2. Firms
3. Co-operatives
4. Societies
5. Start-Ups
6. Government Entities
7. Consumers of DISCOMs
8. Individual

 

Incentives

Following incentives will be provided

1. Electricity Duty : 100% exemption on Electricity duty to captive/open access consumers on consumption of power from RE projects setup within state. Such electricity duty will be reimbursed from the concerned utility and will be applicable for 15-years from the date of commissioning of the project.
2. State Goods and Service Tax (SGST) : 100% exemption from the payment of SGST for all the materials required for development of RE projects and EV charging stations will be provided by Commercial Tax Department for a period of 5-years.
3. Open Access :  Intra-State, open access clearance for whole tenure of project or 25-years, whichever is earlier, will be granted. In absence of any response or intimation from Discom/Transcom to RE generator within 30-days, such application will be considered to be deemed open access. The applicable charges will be governed by BERC regulation for the same.
4. Stamp Duty : 100% reimbursement of stamp duty / registration fees on lease / sale / transfer of industrial land / shade.

5. Free Power and Local Area Development Fund (LADF) : No free power or local area development fund will be applicable for the development of small hydel projects within the state during operative period of this policy.

6. Land Conversion Charges : 100% reimbursement of land conversion fees / change in land use fee being levied for conversion of agriculture land after unit commences commercial production.

7. Exemption from transmission and wheeling charges : Exemption of 100% 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. this period will be 20-years for Grid connected RE projects with storage system selling power within state.

8. STU Charges : Exemption on STU charges will be provided to captive / open access consumers on consumption of power from RE projects.

9. Banking Charges : Banking of 100% of Renewable Energy will be permitted for all captive and open access / scheduled consumers during all 12-months of the year. Banking charges and other clauses will be applicable.

10. Tariff Mechanism

    1. Feed-in-Tariff (FiT) : BERC will announce separate feed-in-tariff for different technology areas.

    2. Solarization of Agriculture Feeder : Discoms are promoted to determine appropriate ceiling tariff that adequately captures smaller project sizes and higher transaction cost. Also, substation wise solar power evacuation capacity will be published especially for agriculture dominated districts by Discoms.

    3. Green Tariff : To promote consumers to opt for green energy, BERC may introduce "Green Tariff" for all consumers. In addition, if consumer is not an obligated entity under RPO regulations, the procurement of power will be considered towards RPO fulfilment of Discom.

    4. Virtual / Group Net Metering : Virtual Net Metering, including Group Virtual Net Metering may be promoted with suitable regulations.

    5. Single Window Facility : A dedicated single window cell for time bound approval (within 60-days from date of submission of proposal through this facility).

11. Carbon Credit / Carbon Pricing : The RE generating entity will retain entire proceeds of carbon credit.

12. Deemed Industry Status : All RE plants will be treated as "industry" under schemes administered by prevailing industrial policy of Bihar. Incentives available to industrial units will be available to RE projects.

13. Promotion of RE based Electric Vehicle Charging Stations : Charging Station Service provider may setup RE generation plant within their premises for captive use and may also draw RE power through open access from generation plant located within the state to avail 100% exemption in normal transmission and wheeling charges for a period of 25-years.

14. Must Run Status : State Load Disptach Center (SLDC) will ensure "Must Run" status for all RE projects in the state.

15. Minimum Generation Compensation : The RE generator will be eligible for a Minimum Generation Compensation from the procurer of power in line with penalty caluse for non-compliance of "Must Run" status due to failure of grid, except during events like consideration of grid security or safety etc. This clause will be applicable for the projects where the power procurement is done by state Discom.

16.  Mandatory Use of RE Sources : State will make it mandatory to use

    1. Solar Water Heating System for all new House/ Building / Marriage Halls / Hotels etc having area of 350 sq meter.

    2. Industries having hot water boiler / steam boiler using fossil fuel will be mandated to install Solar Water Heating System.

    3. Large Industries, having 1000kVA and above as connected load, will be mandated to install Solar PV Project.

17. Payment Security Mechanism : Nodal agency will assist project developer for arranging documents for financing and to avail subsidy from Central / State Government.

18. Transmission & Distribution Infrastructure : For RE projects developed within the state, transmission / distribution utilities will bear the cost of developement of transmission / distribution line and other necessary infrastructure like metering and protective instruments up to a distance of 10km. Beyond this, cost will be equally divided between developer and utility.

19. Power Sale Mechanism :

    1. RE Power Project for Sale of Power to Discom : Procurement of power from grid connected RE projects, having project size below 5MW will be through Feed-in-tariff. For project size of 5MW and above, it will be through competitive bidding.

    2. RE Power Projects under Renewable Energy Certificate (REC) Mechanism : The state will promote development of RE power plants through purchase of power under REC mechanism.

    3. Sale of Power to third party (other than Discom) : RE projects may be installed for third party sale without any capacity restrictions. Discom will provide open access approval in time bound manner to promote third party sale of power.

20. Bihar Akshay Urja Kendra : BREDA will open dedicated Bihar Akshay Urja Kendra in every district to promote and make people aware of renewable energy sources to local people.

21. Application Process : 

    1. Submission of Proposal for Project Development : Project developer will submit their proposal through Single Window System either online or office at BREDA office. Required documents are as follows:

       1. Detailed Project Report (DPR)

       2. Startup India Recognition Certificate / Udyam Certificate / NSIC Certificate /Certificate issued by Concerned Industry Department for involvement in related business

       3. Firm's registration certificate

       4. GST Certificate

       5. PAN Card

       6. Audited balance sheet of atleast one year, if applicable

       7. Income Tax return certificate of atleast one year

    2. Application Charges : BREDA will charge following processing fee (non-refundable):

       1. Plant Capacity Less than 10kW ---- Rs1'000/--

       2. 10kW to Less than 100kW ---Rs2'000/--

       3. 100kW to Less than 500kW ---Rs5'000/--

       4. 500kW to Less than 1000kW ---Rs10'000/--

       5. 1MW and above ---Rs50'000/-- per MW, maximum Rs5-Lakh per proposal

22. Review of Policy : State government may undertake review of this policy on yearly basis under chairmanship of Chief Secretary, Government of Bihar after one year or as and when needed. Retrospective amendments to the incentives available under this policy will be avoided to ensure investor confidence. 

 

DISCLAIMER : Points noted here are intended particulary in reference of Solar Power Plant and is our interpretation. It does not reflect complete policy document. Kindly refer official policy document for any decision. You may download the official document from here.