Rajasthan Electricity Duty Exemption for New Renewable Energy Units
By Department of Industries and Commerce, Government of Rajasthan
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Quick Answer
For new renewable energy generation units: 100% exemption from electricity duty for 7 years under RIPS 2024.
About this subsidy
The Electricity Duty Exemption program, established under Section 4.1.1.2 (1) of the Rajasthan Investment Promotion Scheme 2024, offers a crucial financial incentive for new renewable energy generation units setting up operations in Rajasthan. This policy aims to significantly boost the development and adoption of clean energy technologies within the state by alleviating a substantial portion of their operational expenses. By providing a 100% exemption from electricity duty for a period of seven years, the Government of Rajasthan seeks to create an attractive environment for both emerging startups and established enterprises focused on renewable energy production. This initiative directly supports the state's strategic objectives of fostering economic growth, promoting environmental sustainability, and positioning Rajasthan as a leader in India's renewable energy landscape. It reduces financial barriers, encourages investment in green infrastructure, and ultimately contributes to job creation and technological advancement in the sector.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Industries & Commerce Department is a Government of Rajasthan department based in Jaipur. It runs the Vishwakarma Yuva Udyami Protsahan Yojana, a continuous subsidy for enterprises owned by young entrepreneurs, and it sets out further MSME subsidies and incentives in the…
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What You Get
This program offers a substantial financial advantage through an exemption from 100% of electricity duty for a continuous period of 7 years. This benefit directly translates into significant cost savings for new Renewable Energy Generation Units, thereby improving their financial viability and competitiveness. The exemption is a key component of the state's broader industrial promotion efforts, designed to encourage investment in green technologies and foster a sustainable energy ecosystem in Rajasthan. Beyond the direct financial relief, this regulatory support helps de-risk new projects, making them more appealing to investors and enabling faster deployment of renewable energy capacity. It enhances the economic attractiveness of establishing and operating renewable energy facilities within the state.
- Disbursement
- Reimbursement
- Duration
- 85 months
- Bootstrap friendly
- Yes
Timelines & Process
Applications
Rolling basis
Selection Process
The evaluation and selection process for this exemption is primarily administrative, focusing on objective criteria rather than competitive ranking.
- Applications are meticulously screened by a committee from the relevant state department to confirm that the applicant constitutes a 'New Renewable Energy Generation Unit' as defined under the Rajasthan Investment Promotion Scheme 2024.
- This involves checking project specifics, technical compliance, and adherence to all policy provisions.
- There is typically no interview or pitching round; approval is based purely on meeting the stipulated eligibility requirements.
- Successful applicants receive formal approval for the electricity duty exemption, which is then implemented as per the policy terms. The process aims for transparency and consistency in applying the exemption criteria.
Application Process
- 1
Apply Online/Offline
Submit the application form and required documents as per the Rajasthan Investment Promotion Scheme 2024 guidelines.
You - 2
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- 4
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Program templates & documents
Files the program publishes for applicants — download these and apply in the prescribed format.
Frequently Asked Questions
Who is eligible for this exemption?
New Renewable Energy Generation Units are eligible to claim this exemption.
What is the duration of the electricity duty exemption?
Eligible units will receive 100% exemption from electricity duty for a period of 7 years.
What type of benefit does this program offer?
This program offers a subsidy in the form of an exemption from electricity duty, directly reducing operational costs for renewable energy businesses.
Is there a specific application deadline for this program?
The program is currently active and accepts applications on a rolling basis, as no specific deadline has been mentioned in the policy document.
Which state government is providing this incentive?
This incentive is provided by the Government of Rajasthan under the Rajasthan Investment Promotion Scheme 2024.
Is this a grant or a loan?
This is neither a grant nor a loan; it is an exemption from a tax (electricity duty), making it a form of subsidy that reduces a business's operational expenses without requiring repayment or equity.
Sources
Data on this page is compiled from official program and provider references.
