The policy categories the benefits based on the type of Project. Following table comprises the summary of benefits given to various kinds of projects:
| Project for Residential Consumers | Project Under Captive Use | Project Under Third Party Sale | Projects under REC mechanism | Solar projects for RPO compliance | |
| Capacity Restriction | No restriction on installed Capacity | No restriction on installed Capacity | No restriction on installed Capacity | Up to sanctioned load/Contract demand | No restriction on installed Capacity |
| Capacity Subsidy | As per GOG scheme announced from time to time | – | – | – | – |
| Third Party Sale | Allowed | – | – | – | – |
|
Energy Accounting
|
As per billing cycle
|
For HV/EHV consumers: | For HV/EHV consumers: |
15-minute time block basis
|
15-minute time block basis
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| Energy set off, Between 07.00 hours to 18.00 hours of same day | Energy set off, Between 07.00 hours to 18.00 hours of same day | ||||
| For LT demand based consumers: | For LT demand based consumers: | ||||
| Energy set off, Between 07.00 hours to 18.00 hours in the billing cycle | Energy set off, Between 07.00 hours to 18.00 hours in the billing cycle | ||||
| For LT other than demand based consumers: | For LT other than demand based consumers: | ||||
| Energy set off shall be on billing cycle basis | Energy set off shall be on billing cycle basis | ||||
|
Surplus Injection Compensation
|
For Self consumption: | For MSME: |
75% of simple average of tariff discovered in GUVNL bid
|
65% of simple average of tariff discovered in GUVNL bid
|
75% of simple average of tariff discovered in GUVNL bid
|
| Rs.2.25/Unit for first 5 years, thereafter 75% of lowest tariff discovered in GUVNL bid | Rs.2.25/Unit for first 5 years, thereafter 75% of simple average of tariff discovered in GUVNL bid | ||||
| For third party sale | For others: | ||||
| 75% of lowest tariff discovered in GUVNL bid | 75% of simple average of tariff discovered in GUVNL bid | ||||
|
Banking Charge
|
None
|
MSME units and other than demand based consumers: | MSME units and other than demand based consumers: |
Exempted
|
Exempted
|
| Rs.1.10/unit on energy consumed | Rs.1.10/unit on energy consumed | ||||
| For demand based consumers | For demand based consumers | ||||
| Rs.1.50/unit on energy consumed | Rs.1.50/unit on energy consumed | ||||
| For Government buildings: | For Government buildings: | ||||
| Exempted | Exempted | ||||
| Transmission & Wheeling Charge | None | As decided by GERC from time to time | As decided by GERC from time to time | As decided by GERC from time to time | As decided by GERC from time to time |
| Cross subsidy & Additional Surcharge | NA for Self consumption, Applicable for third party sale | Exempted | As decided by GERC from time to time | As decided by GERC from time to time | NA for Self consumption, For third party as decided by GERC from time to time |
| Electricity Duty | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 |
As per the policy, Gujarat energy development agency(GEDA) will be the state government nodal agency for the following activities:
- Registration of projects
- Accreditation and recommendation of solar projects for registering with central agency under REC mechanism
- Certifying the commissioning of solar projects
In order to encourage small scale solar projects, Policy suggests that the power Distribution Companies will now purchase power from these small-scale solar projects (up to 4 MW) at 20 paise / unit tariff higher than tariff discovered through competitive bidding while DISCOMs will purchase solar power from projects above 4 MW capacity through competitive bidding process. Apart from that, Security deposit to be furnished by developer to DISCOMs for PPA has been reduced from Rs 25 lakh/MW to Rs 5 lakh/MW.
It is important to note that Gujarat has already installed over 3200 MW of Solar PV until 2020 and the recent policy has been published with the aim of rapidly scaling up the state’s solar energy capacity.
The policy promotes solar rooftop and grid connected solar projects. As per the policy, the state aims to achieve 8% RPO by 2022 which is in keeping with the target of 4300 MW by then. Following are the salient features of the policy:
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The state government is promoting the development of solar parks by providing land for its development. It also provides connectivity of solar parks to the nearest substation.
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To promote third party sale, exemption on wheeling/ transmission charges for third party sale.
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They will also be exempted from cross subsidy surcharge, transmission and wheeling charges.
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Banking: Banking of 100% energy in every financial year shall be permitted.
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Electricity duty for 10 years shall be exempted for sale to distribution licensee and solar PV projects will not have to take environmental clearance.
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Building permission from local bodies will not be required for residential, industrial or commercial units.
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Single window clearence will be taken for all solar power projects by UPNEDA.
The order can be accessed here.
]]>The policy promotes both Ground mounted and Solar Rooftop installations. The Solar Purchase Obligation is also hiked to 3% by 2021-22, which may further increase to 8% under the ambitious plans of MNRE to promote Solar Generation by adding 100 thousand MW of Solar Power Nationwide, This would mean the installed capacity in Haryana would rise up to 3200 MW.
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- The Policy promotes development of Solar Parks through a joint Venture company has been formed by HSIIDC and HPGCL named “Saur Urja Nigam Haryana Limited” (SUN Haryana)
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- The Government of Haryana will also facilitate the lease/sub-lease of Panchayat land through SUN Haryana (Saur Urja Nigam Haryana) or directly for setting up of Solar Power Projects for minimum period of 30 years.
- To harness the solar potential in the state the State Government shall provide Capital /generation subsidy/ incentives to Schools, Private and Public Institutes hospitals and commercial buildings for installation of rooftop solar power plants.
- A total capacity of 1600 MW rooftop solar power plants shall be added by the Year 2021-22.
- All new projects of MW scale generating solar energy will be treated as “Industry” in terms of Industrial Policy of the State. Thus all the incentives available to industrial units under the industrial policy from time to time, shall also be available to the solar power producers/units
- Also the Solar Policy provides exemptions like Land use approval, External Development Charges, scrutiny fee and infrastructure development charges also Environment Clearance, Clearance from Forest Department, Stamp Duty for lease of land for projects
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However the most progressive aspect of the solar policy is the Exemption on Electricity Duty Electricity Taxes & Cess, Wheeling, Transmission & distribution, cross subsidy charges, surcharges and Reactive Power Charges will be totally waived off for Ground mounted and Roof Top Solar Power Projects in the state of Haryana.
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Banking
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The banking facility shall be allowed for a period of one year by the Licensee Utilities and IPP will pay the difference of Unscheduled Interchange charges (UI Charges) at the time of injection and at the time of withdrawal. However, Withdrawal of banked power should not be allowed during peak and Time of Day (TOD) hours. If the banked energy is not utilized within a period of twelve
Months from the date of power banked with the concerned power utilities/Licensee, it will automatically lapse and no charges shall be paid in lieu of such Power. The banking facility shall be allowed for the grid connected rooftop solar power Projects on the same pattern as per MW scale projects.
The Policy can be accessed here.
Targets: The new policy announced, has set some ambitious targets for different Renewable Energy sources. The targets defined under the policy are listed in the table below:
Project Specific Guidelines and Incentives:
1. Wind Energy: A total of 5000 MW capacity of wind energy projects shall be commissioned, out of that initial 1500 MW will be used to fulfil RPO of distribution companies and the rest 3500 MW capacity of wind project can be utilized open access for interstate/ intrastate open access/captive consumption/REC etc.
Incentives:
- Wind generators will be given permission for re-powering.
- Land acquired for commissioning of the wind project will be deemed as Non-Agricultural land.
- Concessions will be granted for these projects to get NOC from pollution control board.
- Supervision charges for grid evacuation will be waived off.
- Wind energy projects can register themselves as industrial unit.
2. Sugarcane /Agricultural co- generation projects: Target of 1000 MW has been set for power generation through sugar co-gen/agricultural co-gen projects. Distribution companies shall have first right to fulfil their RPO at fix rate decided by MERC.
Incentives:
- Exemption from Supervision charges for grid evacuation.
- Exemption from E-duty for captive power plants for 10 years from the date of commissioning
- ?Exemption from sales tax on purchase of sugarcane for all projects having capacity more than 3MW (35 lacs units).
- Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
- MahaGenco will give consent for basic infrastructure and evacuation facility to establish co-gen project
3. Small Hydro projects: A target of 400 MW is set up for small Hydro projects. All the small hydro projects will be obligated to sale power firstly to any distribution company within Maharashtra so that they can fulfil their RPO at rates prescribed by MERC, after this they can go on interstate /intrastate third party power sale through REC route.
Incentives:
- Exemption from E-duty for captive power plants for 10 years from the date of commissioning
- ?Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
- MahaGenco shall give subsidy of Rs.50000 per KW to maximum up to Rs. 1. Cr from green energy fund.
4. Agricultural manures based power generation projects: Target of 300 MW is set up for Agricultural manures based power generation projects. MSETCL/MSEDCL will help developers with grid evacuation of LV/HV/EHV projects and Grid.
Incentives:
- Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
- ?Promotional elements will be applicable on project which has got consent for infrastructure after the announcement of policy.
- All projects shall get capital subsidy up to 1 Cr from green energy fund.
5. Solar Power: ?A total of 7500 MW of Solar energy projects shall be commissioned, out of that 2500 MW will be used to fulfil RPO through Public private partnership in association with MahaGenco. And rest 5000 MW will be developed by other developers.
- A total 10 % of all PPP projects i.e. 250 MW will be established on canals, lakes and irrigation project. Minimum of project capacity will be 1MW.
- Minimum of project capacity will be 1MW.
- Development of Solar Park.
Incentives:
- Land acquired for solar projects will be granted deemed status of Non-agricultural land.
- Solar projects having capacity up to 2 MW can be given land 4 hectors as per availability and 50 % discount shall be given on rental/ lease charges. All such transactions will be governed as per Maharashtra land acquisition act.
- Government land if available requires for manufacturing of solar modules/panels/etc. shall also be given 50 % discount on lease/rental charges.
- Concessions shall be granted for these projects to get NOC from pollution control board.
- Solar project developers can sell electricity generated from solar projects to distribution companies /captive use/third-party sale/ REC.
- Open Access shall be granted for interstate as well as intrastate projects as per MERC regulations
- Exemption from Supervision charges for evacuation.
- Projects can register themselves as industrial units.
- Exemption from E-duty for captive power plants for 10 years from the date of commissioning.
- Developers will be given the necessary support for development solar projects, but there will separate provisions for interstate power transfer.
The Policy Document can be accessed here.
]]>A comprehensive Analysis of the proposed solar policy 2014 is below:
The policy also lays emphasis on the development of Solar Parks of MW capacity scale, with the government ready to invest up to 26% equity in the Joint Venture projects with capacity of 1000MW or more. This presents a good opportunity for private investments in building large scale projects.
Rajasthan is an ideal state for development of solar power projects i.e. it receives highest solar radiation in the country, with barren lands aplenty. Overall the state has proposed a comprehensive policy in order to encourage the booming solar sector. Rajasthan has a total installed capacity of 666 MW of Solar Power as of Jan 2014. The state has a solar RPO of 1.50%, which is among the highest in India.
The solar energy generated for sale will not be covered under the scheduling procedure of Intra-state ABT. The commission had invited comments and suggestion by 16th Aug 2014, the result of which will reflect in the final policy document.
The draft policy can be accessed here.
Our previous blogpost on Rajasthan Solar Tariff for 2014-15, can be read here.
Contributed by Dheeraj Babariya.
]]>The policy is aimed at promoting solar power in the state by involving more generators. The policy is applicable for all the distribution licensees in the state and to all consumer availing electricity at voltage levels below 11kV, and shall come into force from the date of publication in the official gazette.
According to the regulation, any consumer may install the solar energy system owned by him or by other third party, provided that the installed energy system should fall under the rated limits, as defined under the regulation, and should comply with the systems of the distribution licensee.
The rated capacity of the installed system shall not be less than 1KWp (Kilo Watt peak) and shall not exceed 1MWp (Mega Watt peak).
The output of the solar system shall comply with provisions of the Kerala Electricity Supply Code 2014, which is defined as –
| Sl. No. | Type of connection | Supply Voltage | Output specifications |
| 1 | Low Tension Single phase | 240 V | 240 V, 50 Hertz |
| 2 | Low Tension Three phase | 415 V | 415 V, 50 Hertz |
| 3 | High Tension | 11000 V | 11000 V, 50 Hertz |
Banking facility: The solar energy systems installed under this regulation are eligible for the banking facility and shall be done on the basis of the readings taken for the billing period applicable to him.
Metering arrangements: The net meters shall be installed at the interconnection point of the consumer with the network of the distribution licensees, and the solar meters shall be installed at the delivery point of the solar systems to measure the energy generated. The commercial settlement shall be done on the basis of readings of this meters.
The eligible consumers have the right to avail open access for wheeling the excess energy generated to one or more premises owned by him within the area of supply of the distribution licensee. Such right for wheeling access energy shall be available only if the wheeled energy to other premises exceeds 500 units in month and the consumer will be able to avail only 95% of the total energy wheeled, while remaining 5% will be adjusted towards distribution losses.
Accounting and settlement – The accounting of the energy generated, consumed and injected by the consumer shall be done on the basis of the readings taken by the meters, for the period applicable to him.
Solar RPO – The energy generated from the solar energy systems of any consumer shall be accounted towards RPO if the consumer is an obligated entity, and if not, then such energy shall be accounted towards RPO of the distribution licensee.
Banking and Cross Subsidy Charge – The eligible consumers generating solar power under this regulation, shall are exempted from banking and cross subsidy surcharge.
The details of the order can be found here
For more details on net metering, click here
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“Solar Purchase Obligation (SPO)”; policy’s main driver of demand, has been confronted with a lot of criticism. Various consumer associations had approached relevant forums against such a binding mandate which required solar energy consumption to be 6% (from Jan 2014) out of total energy consumption. According to an article in The Hindu (dated July 7th 2013), Tamil Nadu Electricity Consumers Association (TECA) went to ApTel in June 2013, saying that consumers will not have the required solar energy capacity. According to submissions in the present order by the appellants, TN requires an installed solar capacity 720 MW in the year 2013 and 1500 MW in 2014, to make solar power available for compliance with SPO and RPO targets.
TANGEDCO as a respondent in the order has said that solar RPO of 0.05 % ceased from being into effect from the time SPO was introduced by the state commission.
TANGEDCO, last year, had floated tenders which has currently around 700 MW of solar projects awaiting execution of power purchase agreements. The solar power price discovered through, competitive bidding mechanism,was Rs. 6.48 per unit. Following this recent ApTel order, TANGEDCO is in a fix whether to scrap solar power purchase obligation or to buy power from solar projects and subsequently move TNERC to raise tariffs, to accommodate additional cost of buying costlier solar power.
A copy of this order can be found here.
Media Articles are available in the following links-
The Hindu? – (dated 6th Nov 2012)
Our relevant blogpost can be read here.
Link to Tamil Nadu’s Solar Policy 2012
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- Kerala aims to have an installed capacity of 500 MW till 2017 and of 2500 MW by 2030. The policy will remain in force till any further solar energy policy is introduced.
- Net-metering is available for all agencies that consume grid power and have some solar installations with govt. subsidies. KSERC will notify the pooled cost of power purchase and feed-in-tariff for procurement by KSEB.
- Solar procurement obligation (SPO) is mandated for all HT/EHT consumers to the tune of 0.25 % till March 2015 (with annual increase of 10%). ?April 2015 on-wards the same shall become applicable for commercial & LT consumers also.
- Incentives –
- No open access charges ?for wheeling of solar power within the state.
- No wheeling charges and T&D losses for solar captive generators.
- Electricity Duty exempted for projects under the policy.
- Banking facility (conditional) available for captive generators.
- ANERT shall be the nodal agency for facilitating the provisions under the policy.
For other provisions please refer the policy document ?– here
Media articles can be assessed on the following links:
Hindu Businessline
The Hindu
- 1500 MW from utility scale projects
- 350 MW from roof top installations
- 1150 MW under REC mechanism.
The utility scale projects are also expected to be developed through competitive bidding process.
1000 MW out of 1500 MW utility scale capacity to be funded by Solar Purchase Obligation (SPO) which is 3% till Dec’13 and scaled up to 6% from Jan’14 and balance 500 MW through Generation based incentive (GBI) by the government. SPO is applicable on all HT Consumers (HT Tariff I to V) & LT Commercial (LT Tariff V). Domestic consumers, huts, cottage & tiny industries, power looms, LT industrial consumers and Agricultural Consumers are exempted from SPO.
On the other hand TNERC also has specified 0.05% of Solar RPO. With state policy in effect, there will be dual RPO imposed on HT and LT Commercial consumers. The state commission might have to realign the Solar RPO to align the RPO structure to meet the policy objective.
The key difference from other states’s solar policy is the Net-Metering arrangements where power producers have to install a separate meter to measure their generation and feed excess power to grid for roof top projects. The current REC policy recognises only grid connected RE projects under REC. With Net Metering, even small scale roof-top solar projects can participate into REC. The GBI being offered is Rs. 2/kWh for first two years, Rs. 1/kWh for the next two years and Rs. 0.5/kWh for the subsequent two years. All new government/local buildings shall necessarily install solar rooftop.
Other initiatives and exemptions:
- Solar water heating systems mandatory for Public Buildings and Industries using hot water boiler/steam boiler using fossil fuels.
- Wheeling & Banking Charges applicable as per TNERC orders.
- Exemption of Electricity Duty for 5 years for using solar power from projects of self consumption/sale to utility.
- Tax Concessions as per TN Industrial policy.
- TEDA designated as single window clearance agency who would be coordinating power evacuation approval, approvals related with connectivity to substation, approvals from pollution control board etc.
- Empowered committee to accord project clearances.
Contributed by Nalin Deshpande
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