Madhya Pradesh (MP), located in central India, enjoys strong sunlight, has available land, and is strategically positioned for large‐scale solar deployment. The state government has laid out ambitious targets and policy incentives to accelerate the adoption of solar energy across rooftops, commercial, industrial, and utility-scale segments.
Policy Targets & Strategic Vision:
• The newly notified Madhya Pradesh Renewable Energy Policy 2025 aims for the state to source 50 % of its annual power consumption from renewable energy by 2030 (with an interim target of ~30% by 2027).
• In the near term, the target is to significantly increase capacity: e.g., an earlier target to expand green energy to 15,000 MW by 2026.
• The policy also emphasizes the development of large‐scale solar parks, renewable energy manufacturing, open access, and the export of green energy outside the state.
Key Provisions & Features:
🔹 Incentives for Solar / Renewable Projects
• Electricity duty exemption for up to 10 years for RE projects.
• Stamp duty/land rebates: e.g., up to 50% reimbursement on stamp duty for private land purchase and circle rate rebates for government land.
• Waiver of wheeling charges up to 50% for the first five years for open access projects.
• Dedicated renewable parks: The state plans to develop RE parks (10 GW or more) with infrastructure, favorable land, and grid access.
🔹 Rooftop & Decentralized Solar Focus
• Residential rooftop solar is supported through central & state schemes, e.g., subsidies listed for rooftop systems in MP.
• The policy emphasizes decentralized generation, rooftop installation on buildings, institutional adoption, and self-generation for industries and commercial users.
🔹 Open Access, Captive & Export Models
• For industrial, commercial, and open access consumers, the policy encourages third-party sales, captive consumption, and group‐captive models.
• Export opportunities: The policy includes provisions for exporting solar/renewable energy to other states or regions.
🔹 Special Initiatives
• Green Cities & special zones: The state highlights the development of “Green Zones” or industrial clusters powered by renewable energy.
• Promotion of solar equipment manufacturing: To boost the local value-chain and jobs, the policy supports the manufacturing of solar modules, components in MP.
What It Means for Stakeholders:
• Homeowners / Residential Consumers: With support for rooftop solar subsidies, net-metering/banking, the policy makes solar more accessible for households. The data shows subsidies in MP for rooftop installs (e.g., ₹30,000 for 1 kW; ₹60,000 for 2 kW; fixed ₹78,000 for ≥3 kW) under certain schemes.
• Businesses, Industries & Commercial Users: With incentives for open access, captive consumption, ability to partner or export renewables, enterprises in MP can reduce electricity costs, improve sustainability credentials, and secure long-term power supply.
• Developers & Investors: The large targets, favorable land/infrastructure policy, grid support measures, and manufacturing focus make MP an attractive destination for solar investments.
• Agriculture / Rural Areas: While the blog focuses more broadly, the decentralized and rooftop emphasis can benefit rural electrification, irrigation, and off‐grid / hybrid solar systems.
• State Economy & Environment: By boosting solar capacity, MP aims to diversify its energy mix, reduce dependence on conventional sources, cut carbon emissions, create jobs, and enhance energy security.
The Road Ahead:
Madhya Pradesh is setting itself up to be a major hub of solar and renewables in India. With the Renewable Energy Policy 2025 and associated incentives, the state is positioning for large-scale growth, industrial manufacturing, and modern solar solutions, including hybrid systems and energy parks.
