The Renewable Energy Policy of Bihar for 2025: An Audacious Step Toward a Greener Future
In a decisive move to embrace sustainability and accelerate its green energy transition, the Bihar state government has unveiled its ambitious Renewable Energy Policy 2025. This policy, approved in July 2025, replaces the earlier 2017 framework and sets a high bar for renewable energy development over the next five years. With an eye toward achieving nearly 24 GW of renewable energy capacity and over 6 GWh of energy storage by 2030, Bihar is signaling its readiness to become one of India’s leading states in clean energy investment and innovation.
Big Numbers, Bold Goals
The core of the new policy lies in its commitment to deploying 23.96 GW of renewable energy capacity across various segments. The distribution is strategically planned:
- Around 21.65 GW from large-scale, utility-connected projects,
- 1.97 GW from distributed energy systems like rooftop solar and village mini-grids,
- Approximately 340 MW from off-grid and remote-area solutions.
To support the intermittency of renewables, the policy also outlines 6.1 GWh of energy storage systems. Of this, 4.5 GWh will come from battery energy storage systems (BESS), while 1.6 GWh is earmarked for pumped hydro storage.
These numbers place Bihar on a transformative trajectory, aligning closely with India’s national renewable energy goals, including the commitment to reach net-zero emissions by 2070 and deriving 50% of its power capacity from non-fossil fuel sources by 2030.
Investor-First Approach
To attract domestic and international investments, Bihar has introduced some of the most generous incentives in the country. The state is offering:
- For up to 15 years, there is no electricity duty.
- 100% reimbursement of State GST for five years on renewable energy materials and infrastructure,
- Waivers on stamp duties and land conversion charges,
- Free transmission and wheeling for 15 years, extendable to 20 if storage is included,
- Long-term open access arrangements (up to 25 years),
- Banking provisions for surplus renewable energy.
Developers will also benefit from state-funded transmission infrastructure, including up to 10 km of transmission lines built at no cost to the project. These incentives make Bihar one of the most attractive renewable investment destinations in India.
Technology-Neutral & Innovation-Friendly
Unlike many other policies that focus solely on solar, Bihar’s 2025 policy encourages diversification. The policy promotes:
- Floating solar on bodies of water and utility-scale solar parks
- Canal-top and canal-bank solar installations,
- Rooftop solar in urban and rural areas,
- Wind energy projects,
- Small hydro power systems,
- Biomass and waste-to-energy plants,
- Green hydrogen production,
- Battery and pumped hydro storage systems.
This wide scope ensures technological resilience and local suitability, particularly in rural and agrarian parts of the state.
Simplified Governance for Developers
One of the standout features is the streamlined approval process. A single-window clearance system has been implemented through the Bihar Renewable Energy Development Agency (BREDA), which will ensure project approvals within 60 days. Multiple bodies have been assigned clear mandates:
- Bihar State Power Generation Company Limited (BSPGCL) is in charge of pumped hydro developments, Bihar Hydroelectric Power Corporation (BHPC) will manage minor hydro projects, and BREDA will act as the nodal agency for the majority of renewable projects.
To support this, the state will maintain a Renewable Resource Bank and a Resource Information System, helping project developers identify suitable land and logistics. Additionally, a district-level interface will assist farmers and private landowners in leasing unused land for energy development.
Green Industry Push
The new policy also addresses the industrial ecosystem around clean energy. To encourage domestic manufacturing of renewable energy components, the state will offer:
- Priority land access for clean tech manufacturers,
- SGST reimbursements for five years,
- Support for creating specialized renewable energy parks.
A significant share—5% of the renewable energy budget—will go into research, development, and skilling through a proposed Bihar Energy Research & Management Institute. The state is also exploring carbon credit trading mechanisms and green tariff models to help utilities recover costs while staying environmentally sustainable.
EV Integration and Rural Empowerment
Electric mobility is not left out. The state plans to establish over 1,000 renewable-powered EV charging stations, offering incentives like land at half the market price and transmission waivers for up to 25 years. These charging hubs will be powered entirely by solar or other clean sources.
On the agricultural side, the policy promotes agrivoltaics—solar panels installed over farmland—allowing farmers to generate income while continuing cultivation. This dual-use model enhances rural incomes and makes green energy inclusive.
Strengthening Power Infrastructure
The policy is backed by ambitious infrastructure upgrades. Bihar is seeking central support for over ₹600 crore worth of improvements, including a Supervisory Control and Data Acquisition (SCADA) system to manage real-time electricity flows and integrate renewable supply efficiently.
In addition, a 2,000 MW battery energy storage system is in the pipeline. The government is pushing for viability gap funding to make this a reality. Other plans include:
- Requesting a higher share of hydropower allocations from Bhutan and central PSUs,
- Exploring nuclear power options in districts like Siwan and Banka,
- Building “islanding” capacity in the Patna grid to ensure blackout-proof energy supply.
Early Successes and Quick Wins
Even before the policy’s launch, the government had initiated pilot projects like the 2 MW canal-bank solar project in Patna, which was completed under the state’s Jal-Jeevan-Hariyali mission. Additional projects involving solarization of canal banks and government buildings are already underway.
In tandem with the main policy, Bihar is set to roll out a dedicated solar and pump-storage policy—giving further shape to its long-term renewable roadmap.
Economic, Social, and Environmental Impact The Road to 2030
To stay on track, Bihar will need to:
- Roll out solar and storage policies immediately,
- Fast-track manufacturing parks and training centers,
- Prioritize canal-top and agrivoltaic pilot projects,
- Secure federal funding and project clearances for infrastructure upgrades,
- Actively promote the state as a green investment hub globally.
A Green Future for Bihar
Bihar’s Renewable Energy Policy 2025 isn’t just a policy document—it’s a roadmap to economic transformation, energy self-reliance, and environmental sustainability. With its comprehensive vision, strong incentives, and inclusive approach, Bihar is poised to become a major player in India’s green revolution.