Renewable Energy
INDIA LANDSCAPE
National Strategic Priority
- India's target is to achieve 500GW Non-fossil energy capacity by 2030
- Reduction of the carbon intensity of the economy by 45% by 2030, over 2005 levels
- 50% of its energy requirements from renewable energy by 2030. India plans to create an extra 2.5-3 billion tons of carbon sink by 2030
- 54 Solar Parks with an aggregate capacity of 39.18 GW , Wind Energy has an offshore target of 30 GW by 2030 , 26.7 GW of Pumped Storage requirement by 2032, 47.2 GW of BESS requirement by 2032
- India aims to achieve its target of 5 MMT of Green Hydrogen production, which will need 125 GW of Renewable Energy, by 2030
- India is on spree to enhance the installation of Renewable Energy to 500 GW by 2030
Sector Performance at the National Level
- India is India is the 3rd largest energy consuming country in the world.
- India is 3rd globally for total renewable power capacity additions . As of September 2026, Renewable energy sources, including large hydropower, have a combined installed capacity of 299.25 GW .
- India ranks 4th in Wind Power Capacity and 3rd in Solar Power Capacity globally
- The installed Renewable Energy capacity (including large hydro) has increased by approximately 262% (nearly 3.6-fold) since 2013-14 — rising from 76 GW to 275 GW by FY2025-26 (March 2026), as per NITI Aayog's India Climate & Energy Dashboard (ICED).
- India's installed non-fossil fuel capacity (comprising Large Hydro, RES, and Nuclear) has increased by approximately 280% (nearly 3.8-fold) over the last 12.5 years — rising from 81,161 MW in March 2014 (Hydro: 40,531 MW; RES: 35,850 MW; Nuclear: 4,780 MW) to 308,026.53 MW as of 30th September 2026
- India's renewable energy sector attracted ~USD 45.72 billion in FDI from FY 2014 to FY 2026.
- Growth of 16.84% (CAGR) in installed Renewable Energy Sources (solar, wind, bio-power, small hydro) capacity over the decade ending March 2026, with Total Renewable Energy (including large hydro) growing at a CAGR of 11.82%
Rajasthan Landscape
Sector Performance:
- Rajasthan ranks 2nd among Indian states in terms of installed capacity of renewable energy, with a total of 51,595.50 MW (as of 30.09.2026).
- Renewable energy accounts for around 77.53% of the state's total installed power capacity, with the remaining ~22.47% coming from conventional sources .
- Rajasthan ranks 1st in solar with an installed capacity of 45,121.44 MW, with over 325 clear sunny days in a year.
- Rajasthan ranks 5th in wind power with an installed capacity of 5,815.29 MW.
- During 2025–26, Rajasthan ranked 1st in the country in electricity generation from renewable energy sources, producing 69.12 Billion Units (BU) and contributing 14.47% of India's total renewable electricity generation. The state also led in electricity generation from solar, wind, bioenergy, and small hydro, with a combined generation of 68.05 BU, accounting for 21.91% of the national generation from these renewable technologies .
- As on August 2026, Rajasthan ranked as the second-largest renewable energy state after Gujarat, with an installed renewable energy capacity of 50.33 GW, accounting for 17.24% of the country's total installed renewable energy capacity.
- As of September 2026, the state surpassed 45 GW of installed solar capacity, making it the leading state in India in terms of solar power generation.
- Rajasthan's installed wind power capacity has more than doubled (+108.8%, ~2.1x) over the past 12.5 years - rising from 2,785.02 MW in March 2014 to 5,815.29 MW by September 2026 .
- Rajasthan produced 69.12 billion units (69,120 million units) of green energy in FY 2025-26 - up from 57.35 billion units in FY 2024-25 (a ~20.5% YoY increase) – ranking 1st among all Indian states in renewable energy generation, with solar contributing 86.69% and wind contributing 10.63% of the total.
- Rajasthan is scaling up grid-scale energy storage through both
integrated and standalone BESS initiatives, positioning the state at the
forefront of energy storage in India and enabling round-the-clock
dispatch of renewable power.
- Rajasthan has floated India's largest-ever integrated solar-plus-storage tender — 2,450 MW of solar paired with 1,600 MW/6,400 MWh of BESS — at the Pugal Solar Park in Bikaner, structured on a Build-Own-Operate basis with 4-hour storage duration.
- In parallel, Rajasthan is building out 6,000 MWh of standalone BESS capacity by 2027, executed in phases under Viability Gap Funding support via the Power System Development Fund scheme.
Rajasthan: Value Proposition for Renewable Energy Investors
- Rajasthan's solar generation potential has been assessed at 829 GW, representing 25% of India's national solar potential of 3,343 GW.
- Rajasthan's wind generation potential has been assessed at 284 GW, representing 25% of India's national wind potential of 1150 GW.
- Rajasthan aims to achieve 125 GW of renewable energy capacity by the fiscal year 2029-30, comprising 90 GW of solar, 25 GW of wind/hybrid, and 10 GW of storage/hydro capacity.
- Rajasthan is a leader in the production of silver, which is used in solar cells. The state is also a major producer of minerals like feldspar and ball clay, essential for the glass industry and used in the front cover of solar panels.
- Rajasthan plays a growing role in the manufacturing of fiberglass, resin, and composite products in India. These materials, comprising 11-16% of the turbine mass, are used in the blades and nacelle of wind turbines.
- The state has large tracts of flat and desert land, ideal for setting up extensive solar and wind farms. Rajasthan receives high levels of solar radiation, averaging 6-7 kWh/m²/day, making it an excellent location for solar energy projects. Regions like Jaisalmer, Barmer, and Jodhpur experience consistent and strong wind currents, essential for wind energy generation, offering ideal locations for wind power projects.
Rajasthan is committed to the development of the Renewable Energy sector through robust infrastructure support, underpinned by large-scale transmission investments, dedicated solar parks, and a well-established industrial land ecosystem.
- Green Energy Corridor:
- A green energy corridor is being developed in western Rajasthan to integrate solar and wind power production. This includes a network of grid sub-stations expected to generate 6,311 MW of green energy.
- Building on this, a 765 kV transmission line connecting Ramgarh and Bhadla has been commissioned along with a 4,000 MVA sub-station, further strengthening power evacuation from the region. A transmission system enabling evacuation of 20 GW of renewable energy from Rajasthan's Renewable Energy Zones has also been made fully operational.
- To further boost this infrastructure, a nationwide Green Energy Corridor Phase-III has been approved with an outlay of Rs 1,86,405 crore, targeting evacuation capacity of up to 135 GW of renewable energy by FY33, with dedicated investment in battery storage systems.
- As of September 2026, transmission systems supporting close to 15.5 GW of renewable energy capacity have already been commissioned in the state, with an additional 51.5 GW currently under implementation.
- Rajasthan offers vast tracts of government land at competitive rates. The state boasts a fully operational solar park spanning 5,700 hectares, including the 2,245 MW Solar Park in Bhadla.
- Building on this strength, Rajasthan has also developed the Pugal Solar Park in Bikaner, India's largest integrated solar park with battery energy storage. The park combines 2,450 MW of solar generation capacity with 6,400 MWh of battery storage, spread across nearly 4,780 hectares of government land on a plug-and-play basis. Developed on a Build-Own-Operate model with 25-year power purchase agreements.
- The state also has significant hubs and clusters for solar and wind
energy.
- Bhadla Solar Park Cluster
- Jaisalmer Wind Energy Cluster
- Barmer Solar & Wind energy Cluster
- Phalodi-Pokhran Solar Cluster
- Pugal and Khuiyala Solar Cluster: Bikaner District, now also home to India's largest integrated solar and battery storage park
- Rajasthan has 460+ well developed industrial parks spread over approximately 1,02,723 acres of industrial land available.
- High Solar Radiation: Rajasthan receives some of the highest solar radiation in India, with 300-325 sunny days a year and solar irradiance of 6-7 kWh/m²/day. This makes it ideal for large-scale solar installations.
- Strong Wind Speeds: Western Rajasthan, especially areas like Jaisalmer, experiences strong wind speeds, making it suitable for wind energy projects.
- Abundant Barren Land: The state has vast tracts of barren land, particularly in the Thar Desert, which is suitable for setting up extensive solar parks.
- Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India
- The Rajasthan Logistics Policy 2025 further reinforces this advantage, targeting a $350 billion state economy by 2030 through dedicated investment in multi-modal parks, dry ports, and logistics infrastructure.
- Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC).
- Universities: Rajasthan has a total of 88 universities out of which 53 private universities, 28 state funded universities and 7 other universities.
- Central Government Institutes: institutions such as Regional Research Institute (H) Jaipur, etc.
- Technical Institutes: The state is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur and Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIIT) - Kota, National Institute of Logistics & Material Management, Udaipur, National Law University, Jodhpur, All India Institute of Medical Sciences, Jodhpur, FDDI - Jodhpur. The Birla Institute of Technology & Science, Pilani, etc. Centre of Excellence in Renewable Energy Education and Research (CoE-RER) at MNIT Jaipur focus on cutting-edge research in renewable energy
- Rajasthan is actively developing its skilled workforce in the Renewables sector, with a sharp focus on comprehensive skill development initiatives.
- Support offered under schemes available for skilling, and infrastructure and technological development.
Policies & Incentives
Rajasthan Investment Promotion Scheme (RIPS) 2024
For Solar PV Module and Cell Manufacturing
Asset Creation Incentives (ACI)
- Capital subsidy up to 13-28% of EFSI to be disbursed in annual installments over 10 years, OR
- Turnover Linked Incentives (TLI) 1.20%-2.0% of Net Sales Turnover to be disbursed annually for 10 years, OR
- Investment subsidy (net SGST reimbursement) up to 75% of the State tax due & deposited for a period of 7 years
Exemptions
- 100% exemption on electricity duty for 7 years
- 75% exemption on stamp duty (+25% reimbursement) and 75% exemption on conversion charges (+25% reimbursement)
Special incentives
- Employment Booster - 10% - 15% booster on chosen ACI
- Training & Skilling Incentive: Reimbursement of 50% of total training cost, up to Rs 4,000/worker/month, for a maximum of 6 months (one-time incentive) OR 50% reimbursement up to Rs 100,000/employee/annum for max 20 employees (one-time incentive)
Additional incentives
(For manufacturing
thrust sectors)
- Sunrise Booster - 25% Sunrise booster on top of the ACI chosen OR
- 10% thrust booster on top of ACI chosen, OR
- 5% interest subsidy for 5 years, capped at 2.5% of EFCI, distributed equally over the 5 years OR
- 20% anchor booster on top of ACI chosen to first 3 units in a region / sector
- Policy allows phasing of investment without loss in benefits
- Additional flexibility for investors to design own ACI mix through customized packages (Min INR 500 crore).
Incentives for Renewable Energy Plants:
Asset Creation Incentives (ACI)
- Investment Subsidy of 75% of State tax due and deposited for a period of 7 years.
Exemptions
- Exemption from 100% of electricity duty for 7 years.
- Exemption from payment of 75% stamp duty and reimbursement of 25% stamp duty.
- Exemption from payment of 75% conversion charge and reimbursement of 25% conversion charge.
- Reimbursement of 100% mandi fee/market fee for 7 years.
Other incentives
- The State will promote development of Solar Plants in Joint Venture with private developers by investing up to 50% equity or any other percentage of equity participation as decided by the State Government.
Customized Packages
- Additional flexibility for investors to design own ACI mix through customized packages for investment over INR 500 crore. In case of investments greater than INR 1000 Cr. and greater than 800 employment generation, the State reserves the right to grant customization on a higher NPV of the Asset Creation Incentive up to up to 20% of the NPV of the chosen Asset Creation Incentive as part of the manufacturing/ services standard package on a case-to-case basis.
Rajasthan Micro, Small and Medium Enterprises Policy, 2024
The Rajasthan Integrated Clean Energy Policy, 2024, offers several incentives to encourage the development of renewable energy in the state. Key incentives include:
- Solar Energy
- Promotion of decentralized grid-connected solar projects (0.5 MW to 5 MW) near 33 kV substations.
- Water Resources Department allocates water for solar PV plant cleaning and auxiliary consumption, as well as for Solar Thermal Power Plants, subject to availability.
- Promotion of rooftop solar through net and gross metering, with gross metering allowed up to 1 MW capacity, where power is sold to DISCOMs at RERC-determined tariffs.
- Virtual Net Metering (VNM) and Group Net Metering (GNM): These provisions allow consumers who lack adequate rooftop space or suitable premises to still benefit from solar energy - a consumer can subscribe to a share of a solar plant located elsewhere, and the electricity generated is credited against their own electricity bill, without requiring any physical wiring connection between the plant and their individual meter.
- Promotes solar adoption among consumers across varied ownership structures - including tenants, apartment owners, and businesses with multiple connections - by decoupling panel location from the financial beneficiary.
- Wind Energy
- Promotion of repowering for wind turbines that have completed at least 10 years of operation.
- For repowering projects, additional generation beyond the average of the last three years can be sold to DISCOMs via competitive bidding or used for captive/third-party sale.
- RREC allows private developers to undertake Wind Energy Resource Assessment (WRA) studies to explore additional locations.
- Government land (up to 100m x 100m) is allotted on a temporary basis (max 3 years) at DLC rates for setting up Wind Monitoring Stations.
- Wind power projects are eligible for RE (Non-Solar) Certificates as per RERC regulations.
- Hybrid Projects (Wind-Solar)
- A plant is recognized as hybrid if the rated capacity of one resource (Wind/Solar) is at least 25% of the other resource (Solar/Wind)
- All fiscal and financial incentives available to standalone wind and solar projects are extended to Wind-Solar Hybrid projects.
- Promotion of hybridizing existing conventional thermal power plants with renewable energy to reduce fuel consumption and carbon emissions.
- Any net gain from blending renewable power with thermal power is shared equally between the generator and DISCOMs (subject to regulator approval).
- Power procured from hybrid projects can be used to fulfill solar and non-solar RPO in proportion to the rated capacity of the respective sources.
- Energy Storage (PSP & BESS)
- New RE projects on the STU network (over 5 MW) are mandated to install Energy Storage Systems (ESS) for at least 2 hours of storage for 5% of the RE capacity.
- Projects integrated with BESS receive a 50% exemption on registration charges, scaling up to 100% for higher storage capacities.
- Standalone BESS and RE-integrated storage projects are eligible for 100% waiver of transmission and wheeling charges for supply during peak/non-solar hours for 7 years.
- Government land may be allotted at concessional rates to BESS projects supplying power to Rajasthan DISCOMs.
- ESS projects are eligible to avail Viability Gap Funding (VGF) as per Government of India schemes.
- Biomass and Waste to Energy
- Projects are eligible for 100% electricity duty exemption (7 years), 75% stamp duty exemption, and 75% conversion charge exemption.
- 100% mandi/market fee reimbursement for 7 years.
- Biomass power plants up to 20 MW are allowed; registration charges are waived for biomass briquette/pellet manufacturing units, biogas, and bio-coal plants.
- Security deposit for government land allotment is set at Rs. 1 Lac/MW, refundable upon commissioning.
- Power producers are allowed to use water from Water Resources Department sources for power generation, subject to availability.
- Projects are eligible for Central Financial Assistance (CFA) as per MNRE schemes.
- Green Hydrogen
- Eligible projects receive a 5% interest subvention on term loans for plant and machinery for 5 years.
- Banking of renewable power is allowed up to 1/3rd of energy injected (15-minute block basis) for a period of 30 days.
- 50% waiver of intra-state transmission and wheeling charges and electricity duty for power produced from RE plants established for Green Hydrogen production.
- Government land is provided on a priority basis for Green Hydrogen plants using brine or treated wastewater.
- Peak generation capacity of the associated RE plant is allowed up to 2.5 times the contracted capacity of the Green Hydrogen plant.
- RE Parks
- The state promotes the development of RE Parks by the private sector, allowing them to create common infrastructure (power evacuation, roads, water supply).
- Park developers are permitted to acquire private agricultural land in excess of ceiling limits under the Ceiling Act, 1973.
- Land conversion is not required for developing RE Parks on private agricultural land.
- Developers setting up RE manufacturing units alongside RE projects are given priority in government land allotment.
- The State will promote development of Solar Plants in Joint Venture with private developers by investing up to 50% equity or any other percentage of equity participation as decided by the State Government.
Rajasthan Green Hydrogen Policy, 2023
The Rajasthan Green Hydrogen Policy, 2023, offers several incentives to encourage the development of green hydrogen in the state. Key incentives include:
- Transmission and Distribution Charges: A 50% exemption on transmission and distribution charges for 10 years for facilities producing 500 kilotons per annum (KTPA) of renewable energy.
- Cross-Subsidy Surcharge: A 10-year exemption from cross-subsidy surcharges for green hydrogen procured from third parties.
- Land Allotment: Competitive rates for land allotment to set up green hydrogen production facilities.
- Banking Charges: Waiver of banking charges for electricity generated from renewable sources.
Rajasthan Renewable Energy Policy, 2023
The Rajasthan Renewable Energy Policy, 2023, offers several incentives to promote the development and integration of renewable energy in the state. Key incentives include:
- Transmission and Distribution Charges: Exemption from transmission and distribution charges for renewable energy projects.
- Cross-Subsidy Surcharge: Waiver of cross-subsidy surcharges for renewable energy.
- Electricity Duty: Reduction in electricity duty on solar energy from 60 paisa per unit to 40 paisa per unit.
- Land Tax: 100% exemption on land tax for renewable energy projects for seven years.
- Banking Charges: Waiver of banking charges for electricity generated from renewable sources.
Rajasthan Biomass and Waste to Energy Policy, 2023
The Rajasthan Biomass and Waste to Energy Policy, 2023, offers several incentives to promote the use of biomass and waste for energy production. Key incentives include:
- Subsidies and Grants: Financial support in the form of subsidies and grants for setting up biomass and waste-to-energy plants.
- Land Allotment: Provision of land at concessional rates for establishing these plants.
- Tax Exemptions: Exemptions on various state taxes and duties for a specified period to reduce the initial financial burden on developers.
- Priority in Grid Connectivity: Priority access to grid connectivity for the power generated from biomass and waste-to-energy plants.
- Financial Assistance for R&D: Support for research and development activities in the field of biomass and waste-to-energy technologies.
Ease of Doing Business
Rajasthan's Ease of Doing Business framework is anchored by three key digital platforms - RajNivesh, RRECL Developer Connect, and DRE-PMT - reflecting the State's commitment to establishing a fully transparent, technology-enabled, and investor-friendly renewable energy ecosystem, and reinforcing its position as India's leading destination for clean energy investment
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a single platform for approval/tracking center for clearances & approvals, operating under the Rajasthan Enterprises Single Window Enabling and Clearance Act, 2020
- The platform integrates over 123+ services across 14 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development policies that enhance ease of doing business and promote sustainable development.
- Automated Processes: Automated systems for registration, licensing, and bill payments, now enhanced with a "Know Your Approvals" (KYA) module, a Compliance Dashboard, and a Central Inspection System (CIS).
- Reduced Compliance Burden: Simplified labor laws, environmental clearances, and other regulatory procedures - further strengthened by integration with the National Single Window System and a GIS-based Land Bank for faster site identification.
- Time-Bound Services: Guaranteed timelines for services, ensuring prompt delivery.
- Dedicated Teams: Specialised teams for investor support, handholding, and facilitation.
- A unified, mandatory digital platform launched by the Rajasthan Renewable Energy Corporation Limited (RRECL) for registering all renewable energy project categories across the state
- Covers the complete spectrum of renewable energy project categories, including Solar, Wind, Hybrid, RE Parks, Biomass, Waste-to-Energy, PM-KUSUM, Battery Energy Storage Systems (BESS), Pumped Storage Projects (PSP), Green Hydrogen, Bio-energy, and wind/solar resource monitoring stations.
- Features full digital integration with Rajasthan Vidyut Prasaran Nigam Limited (RVPN) for online connectivity applications, enabling a paperless approval process.
- Serves as the mandatory registration platform for all renewable energy projects in the State, ensuring a single, standardised compliance interface for developers.
- A unified digital platform developed by RRECL in collaboration with the State's three Distribution Companies (JVVNL, AVVNL, and JdVVNL) to monitor and manage distributed/rooftop solar projects across their complete lifecycle — from application and approval to subsidy disbursement and generation monitoring.
- Comprises five integrated modules:
- State Subsidy Management, linked with the PM Surya Ghar – Muft Bijli Yojana (PMSG-MBY) National Portal
- Net-Metering Approvals, providing a unified DISCOM approval workflow
- Generation Monitoring, offering real-time production and performance tracking
- Solar Village & City Accelerator, enabling district and city-level progress monitoring
- Solar Energy Data Monitoring (SEDM) for PM-KUSUM Components A and C
- Provides a structured, eleven-stage application tracker covering submission, feasibility approval, vendor selection, installation, inspection, commissioning, and subsidy disbursement - ensuring complete transparency for applicants at every stage.
- Incorporates robust governance safeguards, including maker-checker controls for subsidy disbursement, bank account validation through PFMS/IFMS, complete audit trails, and real-time applicant notifications.
- Enables real-time generation monitoring through SCADA-integrated inverter and meter data, refreshed at frequent intervals, supporting transparent performance tracking across government and PM-KUSUM rooftop installations statewide.
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a single platform for approval / tracking center for clearances & approvals
- The platform integrates over 120+ services across 14 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development policies that enhance ease of doing business and promote sustainable development.
- Automated Processes: Automated systems for services like registration, licensing, and bill payments.
- Reduced Compliance Burden: Simplified labor laws, environmental clearances, and other regulatory procedures.
- Time-Bound Services: Guaranteed timelines for services, ensuring prompt delivery.
- Dedicated Teams: Specialised teams for investor support, handholding, and facilitation.
Opportunities
Green Hydrogen Production
Pumped Hydro Storage
Offshore Wind energy
- Floating Wind Turbines
- Grid Integration
Solar-Wind Hybrid Projects
- Hybrid microgrids
Major Players in Rajasthan
