Rajasthan Electricity Duty Exemption for New Renewable Energy Units
Department of Industries and Commerce, Government of Rajasthan · Central government
RIPS 2024 gives new renewable energy generation units a 100% electricity duty exemption for 7 years.
Open, rolling. Applications are accepted continuously — there is no deadline.
Key facts
- Subsidy amount
- Not specified
- Instrument
- Subsidy
- Deadline
- Rolling
- Disbursement
- Reimbursed after spend
- Scheme duration
- 85 months
About this scheme
Under Section 4.1.1.2 (1) of the Rajasthan Investment Promotion Scheme 2024, new renewable energy generation units operating in Rajasthan can claim an exemption from electricity duty. The measure is intended to lower the running costs of such units and, in doing so, to encourage the spread of clean energy technologies across the state.
A full exemption — 100% — from electricity duty applies for seven years. The Government of Rajasthan has framed the benefit to draw in both recently formed startups and longer-established firms engaged in renewable energy production.
The scheme ties into the state's wider goals of economic growth and environmental sustainability, and of building Rajasthan's standing within India's renewable energy sector. By easing a cost burden, it seeks to draw investment into green infrastructure, generate employment and support technological progress in the sector.
Who can apply
- Eligible business forms
- Private limited company, Limited liability partnership, One person company, Partnership firm, Sole proprietorship
- Udyam registration
- Not specified
- MSME registration
- Not specified
- DPIIT startup recognition
- Not specified
- GST registration
- Not specified
- Where the business may be based
- Rajasthan
- Renewable energy generation units in Rajasthan are eligible, provided they are new. - The unit must be a new renewable energy generation unit. - Eligibility is limited to new renewable energy generation units located in Rajasthan.
How to apply
The Rajasthan Investment Promotion Scheme 2024 serves as the usual channel through which Electricity Duty Exemption applications are routed.
- New Renewable Energy Generation Units intending to apply should begin by reviewing the official guidelines and application forms. These are generally hosted on the website of the Rajasthan Department of Finance or that of a designated nodal agency. - A detailed project report, incorporation certificate, evidence establishing the unit as 'new', and the prescribed forms pertaining to electricity duty exemption must all form part of the application package. - Submission of these documents takes place either online or in person, in accordance with the method stipulated. - Once submitted, the application is subjected to a comprehensive verification exercise by the concerned state authorities, who assess eligibility and confirm that every criterion of the scheme has been met. Assembling all requisite documentation with care is recommended so as to prevent delays.
How applications are assessed
For this exemption, selection is handled administratively and rests on objective criteria rather than competitive ranking. A committee drawn from the concerned state department screens each application to verify that the applicant qualifies as a 'New Renewable Energy Generation Unit' under the Rajasthan Investment Promotion Scheme 2024, examining project details, technical compliance and conformity with all policy provisions.
No interview or pitching stage is involved; approval follows solely from satisfying the prescribed eligibility conditions. Applicants who clear the screening receive formal approval for the electricity duty exemption, which is then given effect according to the policy terms. The approach is intended to keep the application of exemption criteria transparent and consistent.
Frequently asked questions
Who is eligible for this exemption?
New renewable energy generation units qualify for this exemption.
What is the duration of the electricity duty exemption?
Units that qualify are exempt from paying electricity duty in full for 7 years.
What type of benefit does this program offer?
The programme provides a subsidy through exemption from electricity duty, which lowers operating costs for renewable energy businesses.
Is there a specific application deadline for this program?
The programme remains open and takes applications throughout the year, since the policy document sets out no fixed closing date.
Which state government is providing this incentive?
The Government of Rajasthan offers this incentive through the Rajasthan Investment Promotion Scheme 2024.
Is this a grant or a loan?
It is neither a grant nor a loan, but an exemption from electricity duty — a subsidy that lowers a business's operating costs with nothing to repay and no equity given up.
Sectors
- Climate Energy Ev
- Renewable Energy
- Electricity Duty
- Exemption
- Rajasthan
Details last verified on 18 September 2026. Source: the issuer's published information.