Bihar Proposes New Standard Prices for Renewable Power for FY 2026

Bihar Proposes New Standard Prices for Renewable Power for FY 2026

December 30, 2025

The Bihar Electricity Regulatory Commission (BERC) has put forward a draft order suggesting standard (generic) tariffs for electricity produced from certain renewable energy sources for the financial year 2025-26, and invited feedback from stakeholders until January 19, 2026. 

Under the proposal, biomass gasifier-based power would attract a tariff of about ₹9.49 per unit, slightly higher than last year’s ₹9.12, while bagasse-based cogeneration projects are proposed at approximately ₹7.77 per unit, up from ₹7.40. Other biomass cogeneration (non-bagasse) is set at around ₹8.47 per unit and refuse-derived fuel projects at about ₹9.22 per unit, both showing modest increases over FY 2025. Tariffs for municipal solid waste projects using Rankine cycle technology are proposed to be reduced slightly compared with the previous year. The draft tariff order applies to renewable projects that begin operations up to March 31, 2026, and remains in effect for projects commissioned after that date until a new tariff order is issued. The commission has used a normative debt-equity ratio of 70:30 and set interest on loans at 10.80 %, with post-tax return on equity factored at 16.96 % for the first 20 years and 21.52 % thereafter. Operation and maintenance costs are assumed to rise annually by 3.84 %. Fuel prices for FY 2025-26 have been fixed for biomass, bagasse and refuse-derived fuel, with no fuel cost allotted for municipal solid waste projects, treating waste as a zero-cost input.

Technologies such as solar, wind, hybrid systems and storage-linked projects are excluded from this generic tariff order and will continue to have tariffs set on a case-by-case basis. The commission’s move aligns with Bihar’s larger renewable energy goals, including an earlier target to derive over 43 % of its energy from renewable sources by FY 2030.