Maharashtra’s New RE & Storage Policy 2025–2035 Is Here – EQ

Summary:

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# Maharashtra’s New RE & Storage Policy 2025-2035: Industry Snapshot

**Notified on March 18, 2026** — This landmark policy establishes Maharashtra as India’s first state to mandate energy storage as a core requirement for renewable energy integration, fundamentally reshaping procurement, project development, and financing.

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## At a Glance: Key Targets

| Metric | Target |
|——–|——–|
| **RE Share by FY30** | 50% (rising to **65% by FY2036**) |
| **Storage Obligation by FY2036** | 10% of DISCOM demand |
| **RE Capacity Needed by FY2036** | 100 GW (implied equivalent) |
| **Storage Required by FY2036** | 100 GWh/day (~20 GW at 5-hour duration) |
| **Storage Charging Mandate** | Minimum **85% of stored energy must come from RE sources** annually |

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## Hybrid & Storage-Specific Targets

### Co-located Storage Mandates

| Timeline | Target | Storage Requirement |
|———-|——–|———————|
| By FY 2029-30 | 10 GW new solar/wind/hybrid with storage | Minimum 50% of RE capacity with 2-hour duration |
| By FY 2035-36 | 25 GW total | Minimum 4-hour duration for projects post-FY2030 |

### Stand-Alone Storage
– Technology-agnostic tenders encouraged
– Storage-as-a-service and ancillary service models explicitly recognized
– Pumped Storage (PSP) remains a key long-duration pathway alongside BESS

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## Major Financial Incentives

### Charge Relief for Storage Projects
Energy Storage Systems (ESS) drawing power for **in-state use** are exempt from:

| Charge Type | Waiver Status |
|————-|—————|
| Transmission Charges | ✓ Exempt |
| Distribution Demand & Wheeling Charges | ✓ Exempt |
| Electricity Duty | ✓ Exempt |
| Cross-Subsidy Surcharge | ✓ Exempt |

*This dramatically improves project economics for both co-located and stand-alone storage developers.*

### Land Availability
| Land Type | Terms |
|———–|——-|
| **Government Land** | Nominal lease of **₹1/year for 30 years** |
| **Private Land** | Higher of 6% of land value or **₹1.25 lakh/hectare/year**, with **3% annual escalation** |
| **NA Tax/Premium** | **Fully waived** for RE and storage projects |
| **RE Industrial Zones** | 10 zones by FY30, 15 by FY36; **₹500 crore budgetary support** |

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## New Market Segments Opened

### 1. Distributed Storage (≈10% of Total Target)
– Explicit earmark for **decentralized ESS** — a major distributed market signal
– Targets rural feeders, critical social loads, and high-rooftop-penetration areas

### 2. Urban Solar+Storage Hubs
– **100-250 MW hubs** near major cities and industrial clusters
– Designed for C&I buyers seeking reliable, firm, green power
– Reduces grid congestion and transmission losses

### 3. Rooftop Storage Mandate
For projects >100 kW seeking connectivity from **April 1, 2026**:
– Mandatory storage at **50% of RE capacity with 2-hour duration**
– Existing rooftop solar projects encouraged to add storage

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