Maharashtra to boost solar capacity by 9,200 MW within 14 months

Maharashtra plans to increase its solar energy capacity by 9,200 MW, raising its total from 3,600 MW to 12,800 MW within the next 14 months. State Power Minister Devendra Fadnavis announced the work orders under the Mukhyamantri Saur Krushi Vahini Yojana-2.0, India’s first solarization project for agricultural pumps.

The initiative aims to halve power costs for agricultural pumps, reduce cross-subsidy burdens, lower tariffs for industrial and commercial users, and cut government subsidy expenses by about Rs 45 billion. By generating solar energy near agricultural fields, the project will reduce transmission losses and improve power reliability for over 10 million farmers, providing 8-10 hours of daytime electricity.

The state has earmarked 40,000 acres of land near substations for solar installations, forming 22 special purpose vehicles (SPVs) for clusters of at least 200 MW each. Maharashtra Agro Solar has facilitated approvals and land geo-tagging. The solar power procurement tariff is set at Rs 3.08 per unit, significantly lower than the Rs 8.7 per unit cost of thermal energy.

Maharashtra State Electricity Distribution Company Ltd (MSEDCL) Managing Director Lokesh Chandra reported strong interest, with bids exceeding the expected 4,000 MW capacity. The first 100 MW of generation is expected by the end of August, with 1,000 MW projected by year-end. Early project completion by September 2025 will be incentivized.

This project is expected to attract Rs 400 billion in investments and create around 30,000 rural jobs. Additional tenders for 5,550 MW of solarization will be announced soon. Currently, renewable energy makes up 17% of Maharashtra’s energy mix, projected to rise to 20% within five years.