Maharashtra Proposes Major Boost to Free Electricity for Farmers While Accelerating Solar Power Push
In a significant budgetary move, the Maharashtra government has proposed a substantial increase in financial support for providing free electricity to farmers, even as it intensifies efforts to shift agricultural demand toward solar power and expand clean-energy capacity across the state.
Enhanced Budgetary Allocation for Farmer Electricity Concessions
Chief Minister Devendra Fadnavis, during his budget speech on Friday, revealed that under the Mukhyamantri Baliraja Mofat Veej Yojana, the state has disbursed Rs 32,756 crore up to February 2026. This scheme provides a 100% concession in electricity bills for agricultural pump consumers with connections up to 7.5 horsepower.
For the 2026-27 fiscal year, the government has proposed an outlay of Rs 23,000 crore for this initiative, marking an increase of Rs 8,000 crore over the previous year's allocation. This sharper rise underscores the state's commitment to supporting the agricultural sector through enhanced energy subsidies.
Ambitious Solar Energy Expansion Plans
Simultaneously, Maharashtra is banking on the Mukhyamantri Saur Krishi Vahini Yojana 2.0 to deliver daytime power to all agricultural pump consumers by constructing 16,000 megawatts of solar capacity. Fadnavis announced that 3,349 MW has already been commissioned, with an additional 10,000 MW targeted for completion by December 2026.
On the rooftop solar front, Maharashtra ranks second nationally in implementation. Approximately 4.6 lakh domestic consumers have installed rooftop solar systems totaling over 1,735 MW, with subsidies of Rs 3,200 crore extended to beneficiaries. The state has set a long-term target of achieving 75% clean energy by 2047 through solar, wind, and green hydrogen projects.
Record-Breaking Achievements and New Policy Initiatives
Fadnavis highlighted a Guinness World Records milestone achieved in December 2025, when the state installed 45,911 solar agricultural pumps in a single month. Additionally, the government approved a subsidy of Rs 635 crore for 5 lakh beneficiaries of the SMART scheme, which supports rooftop solar consumers using 0-100 units of electricity monthly.
The chief minister also announced the "Maharashtra Renewable Energy and Energy Storage Policy 2025 to 2035," which targets 50% green energy by 2029 and 65% by 2035. This policy is expected to attract Rs 3 lakh crore in investment and generate Rs 15,600 crore through state GST revenues.
Pumped Hydro Development and Economic Impact
Separately, under the pumped hydro development policy, memorandums of understanding for 55 projects have been signed, with an expected capacity of 78,215 MW. Fadnavis added that these projects could bring Rs 4.1 lakh crore in investment and create 1.3 lakh jobs, with work already begun on six projects totaling 10,300 MW.
This dual approach of enhancing traditional energy subsidies while aggressively promoting renewable sources positions Maharashtra as a leader in balancing agricultural support with sustainable energy development, aiming for significant economic and environmental benefits in the coming decades.
