Bihar unveils policy to boost clean energy economy with State GST exemption, incentives for EV charging stations
Manoj Singh, Energy Secretary, Government of Bihar
The Bihar government on Friday unveiled its policy to expand the clean energy economy in the State, which includes incentives such as no State GST and land at concessional rates for EV charging stations.
The policy aims to promote stakeholder engagement in manufacturing and deploying renewable energy (RE) projects, while encouraging integration of advanced and efficient technologies in generation and storage. These will help create a RE, which will generate employment opportunities across segments, emphasised Manoj Kumar Singh, Bihar Energy Secretary.
“Besides, with the free ISTS (free ISTS regime) regime drawing to a close, it is time for the industry to act. We are offering one of the most attractive policy regimes in the country—those who invest in Bihar now will fetch maximum returns and lead India’s clean energy revolution from the front,” he told businessline.
The policy push to enhance employment and investment opportunities in Bihar comes at a time the State is heading for polls in the next 3-4 months.
Developer-focussed policy push
The Bihar Renewable Energy Policy, 2025, which identifies the State’s appetite to support 23.97 gigawatts (GW) of RE and 6.1 GW hours (GWH) of energy storage by FY30, assures “unpatched security” for developers, the State government stressed.
The policy offers critical incentives such as no State GST payments, open access for the entire tenure of the project, no free power offerings and zero contribution to the local area development fund.
Besides, allotment of government land at 50 per cent concessional rate to first 1,000 or 50 megawatt (MW) capacity, whichever is higher, for setting up RE-powered EV charging stations will help drive up investor interest.
The policy also introduces a highly competitive suite of incentives designed to attract investors and developers which include a streamlined single-window clearance system to fast-track project approvals.
The policy grants a 100 per cent waiver on electricity duty for 15 years and also offers long-term open access for 25 years along with full exemption from transmission and wheeling charges.
State utilities will bear the cost of transmission and distribution infrastructure up to 10 kilometers, with shared responsibility beyond that point.
“Renewable energy projects will enjoy ‘Must Run’ status and separate feed-in tariffs tailored to different technologies, along with guarantees like minimum generation compensation, energy banking, and a robust payment security mechanism,” the State government emphasised.
Developers will also benefit from priority access to government land on long-term leases, deemed industry status, and eligibility to claim carbon credits under the UNFCCC or other national schemes.
Notably, a minimum of 5 per cent of the renewable energy budget will be allocated exclusively to R&D initiatives.
“What truly sets Bihar apart is the assured market for renewable energy within the state. According to the Central Electricity Authority’s (CEA) Resource Adequacy Plan, Bihar must procure around 23 GW of RE by FY30—offering developers unmatched market security,” the State assured.
In case of loss in generation of RE power from projects developed in Bihar due to failure of the grid, the RE generator will be eligible for compensation from the procurer of power, the policy states.
Besides, the Nodal Agency in consultation with the departments will set up a payment security mechanism for sale of electricity to government departments and Discoms, in line with the guidelines of the Union Power Ministry, it added.
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Published on July 11, 2025
