The Indian state of Bihar officially unveiled its Renewable Energy Policy 2025 on July 11, 2025, establishing an ambitious framework to achieve 23.97 GW of renewable energy (RE) capacity and 6.1 GWh of energy storage by fiscal year 2030. This forward-looking policy, which supersedes the 2017 version, underscores Bihar's commitment to aligning with India's national net-zero targets and accelerating its clean energy transition, positioning the state as a significant player in the nation's sustainable development landscape.

The comprehensive policy spans a broad spectrum of clean energy technologies, including ground-mounted, rooftop, floating, and agrivoltaic solar, alongside wind, small hydro, biomass, waste-to-energy, green hydrogen, and various energy storage systems such as grid-level batteries and pumped hydro. To incentivize rapid deployment, the policy offers a robust suite of fiscal and regulatory benefits. These include a 100% exemption on electricity duty for captive and open access consumers for 15 years, a full exemption from State Goods and Services Tax (SGST) on project materials for five years, and 100% exemption on transmission and wheeling charges for 15 years, extending to 20 years for projects integrated with storage systems. Additionally, developers will benefit from stamp duty waivers, open access provisions, and 100% banking of renewable energy credits throughout the year.

A strategic thrust of the Bihar policy is the emphasis on decentralised and integrated solutions. Renewable energy projects will be granted "must-run" status, ensuring priority dispatch and offering minimum generation compensation in cases of grid curtailment not related to safety. The policy specifically promotes agrivoltaics, feeder-level solarisation, and standalone solar pumps, aiming to bolster rural incomes while enhancing agricultural productivity. Furthermore, it seeks to foster the creation of solar and RE equipment manufacturing hubs within the state, earmarking 5% of its RE budget for research and development through a dedicated Bihar Energy Research and Management Institute. The policy also encourages the establishment of RE-based electric vehicle charging stations, offering concessional land rates for the first 1,000 stations and a 25-year exemption from transmission and wheeling charges.

The Bihar Renewable Energy Development Agency (BREDA) has been designated as the nodal agency for most RE projects, with a mandate to implement a single-window clearance system that guarantees all project-related approvals within 60 days. This streamlined approach aims to significantly reduce bureaucratic hurdles and accelerate project execution. Bihar's proactive stance contrasts with ongoing debates in other regions, such as Germany, where discussions persist about potentially moderating renewables expansion targets based on revised electricity demand forecasts, despite expert warnings that ambitious build-out lowers system costs and incentivizes broader electrification. By setting clear, ambitious targets and providing strong incentives, Bihar is poised to attract substantial investment, drive green job creation, and enhance its energy security, contributing critically to India's broader climate objectives.