Draft Solar Policy

Government of -------------------Department of New & Renewable Energy

Notification
No.

Date: xx/xx/201x

Preamble
In order to reduce the dependence on fossil fuel based generation, it is essential to explore all possible
alternative sources of generation. Under these circumstances, the generation based on renewable
energy resources as well as adopting energy efficiency measures to fulfil the electricity requirement
shall play a significant role in meeting our future demands of electricity.
To achieve a sustainable development route that provides for advancement in economic as well as
environmental objectives, the Government of ---------------------- is determined and taking necessary
steps to encourage the generation based on renewable energy resources. The State has an average
solar insolation of about ------------ kWh/m2/day which the State intends to harness to support the
energy requirements of the State.
Due to the decline in the upfront capital cost, the cost of generation of solar power generation plant
has become competitive with many conventional power generation technologies. It is also witnessed
that the consumer tariff in various segments have achieved parity with the cost of generation of
electricity generated from solar power plants and consequently, the decentralised mode for generation
of electricity has increasingly accepted by all set of stakeholders. Further with the technological
advancement, solar energy applications have widely accepted in off-grid mode of electricity
generation as well as in thermal applications.
Accordingly, the Government progresses to introduce this policy to harness the incident solar
insolation on the State and to realise the potential benefit to the environment by deploying of solar
plants.

1. Title of the Policy

The policy shall be known as the Solar Policy, 201x.

2. Objectives
The State Government introduces the Policy with the objective to optimally utilize the available solar
resources incident over the State and support Government in achieving targets envisaged for
deployment of solar energy.

3. Legislative Framework for Policy

Several provisions under the Electricity Act, 2003 mandates the Electricity Regulatory Commissions
and the Governments to take necessary steps for promotion of renewable energy. The Section 108 of
the Act mandates the Government to give directions to the State Commission in the matter of Policy
involving public interest. Accordingly, the State Government in exercise of its powers formulates this
policy.
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4. Operative Period
1. The policy shall come into effect from -------------------------- and shall remain valid, until
superseded or modified by another Policy, till ----------------------.

2. The Government may undertake review of this Policy at regular time intervals and modify,
amend the provisions of the Policy as and when required with a view of any technological
advancement and/or to remove difficulties.

5. Eligible Entities
Any person which shall include any company or body corporate or association or body of individuals,
whether incorporated or not, or artificial juridical person shall be eligible to set up plant and receive
benefits under this policy.

6. Minimum Target
The State shall strive to achieve the objectives of the policy and aim at implementing minimum
targets, elaborated below, within the Operative Period,
Description
Solar Photovoltaic Power
Plants
Solar Thermal Power
Plants
Rooftop Solar Power
Plants
Decentralized & Off Grid
Solar Power Plants

Unit

FY 16

FY 17

FY 18

FY 19

FY 20

MW

MW

Solar Thermal Collectors

m2

MW
MW

*The minimum size of the plant at single location shall be determined by the Nodal Agency.

7. Implementation Plan for Utility Scale Power Plants

The State shall aims at developing utility scale solar power plants under following segments to realize
the minimum targets,
Segment I: Development Solar Power Plants under the schemes announced by Government of
India
The State Government shall endeavor all its cooperation to the project developers participating in the
schemes announced by the Ministry of New and Renewable Energy, from time to time. The Nodal
Agency shall actively participate in the discussions/public consultations and arrange & submit the
recommendations, in timely manner, to the Ministry of New and Renewable Energy, required for
finalization of such scheme. The Electricity Regulatory Commission shall also announce suitable
framework for the implementation of such scheme, if required, in a time bound manner.
Segment II: Development Solar Power Plants for Sale of Electricity to the Distribution Licensee
To support complying with the renewable (solar) purchase obligation target announced by the
Electricity Regulatory Commission, the State Government shall promote development of solar power
plants for sale of electricity generated to the Distribution Licensee. The Nodal Agency shall formulate

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suitable provisions for the allotment of capacity to the project developers and shall organize
competitive bidding for the selection of project developers. The Electricity Regulatory Commission
while formulating the regulatory framework shall include necessary provisions to adopt the tariff
discovered in the competitive bidding process, if the discovered tariff is lower than or equal to the
specified feed-in tariff following regulatory process.
The Electricity Regulatory Commission shall announce separate feed-in tariff applicable for utility
scale solar photovoltaic power plants and utility scale solar thermal power plants, after considering the
State specific parameters. The feed-in tariff shall act as a ceiling limit in the competitive bidding
process organized by the Nodal Agency.
Segment III: Development Solar Power Plants for Sale of Electricity to any Person other than
the Distribution Licensee
The State shall promote development of solar power plant for sale of electricity to any Person other
than the Distribution Licensee. The Nodal Agency shall extend its support for implementation of solar
power plants under this segment.
The Electricity Regulatory Commission shall announce suitable provisions for the development of the
plants under this category.
Segment IV: Development Solar Power Plants under Renewable Energy Certificate Mechanism
The State Government shall promote the development of solar power plants under the renewable
energy certificate mechanism specified by the Central Electricity Regulatory Commission. The Nodal
Agency shall extend its support for the accreditation of the power plant and recommending its
registration with the Central Agency in a time bound manner. In carrying out its role, the Nodal
Agency shall be guided by any directions given to it by the Electricity Regulatory Commission for the
implementation of the framework, from time to time.
Segment V: Development Solar Parks
The Nodal Agency shall undertake assessment of non-productive Government land and submit its
report to the State Government for the development of Solar Parks on such land. While formulating
the framework for the development of Solar Park, the Nodal Agency shall undertake public
consultation and accordingly specify provisions. The Electricity Regulatory Commission shall
develop suitable framework to ensure successful development of Solar Parks in the State.
In addition, the Nodal Agency shall also support the prospective power plant developers for the
development of plants in the Parks. The Nodal Agency shall charge nominal fee, after approval by the
Government.
Segment VI: Development Solar Power Plants on Canals
The State shall promote development of Solar Power Plants on the Canal Top and on the banks of
canal, after undertaking its technical feasibility. In addition, the Nodal Agency shall coordinate with
the Ministry of New and Renewable Energy for implementation of its scheme announced from time to
time.
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Segment VII: Development Solar Power Plants under any other scheme of Central or State
Government
The State shall promote development of Solar Power Plants under any other scheme announced by the
Central Government or the State Government, from time to time.

8. Implementation Plan for Rooftop Solar Photovoltaic Power Plants Connected with
Electricity System
The State shall encourage implementation of the minimum target specified for rooftop solar
photovoltaic power plants, connected with electricity system, under below mentioned segments,
Segment I: Generation and Sale of Electricity to the Distribution Licensee of the State
In order to reap the benefits and to enable obligated entities complying with the solar purchase
obligation targets specified by the Electricity Regulatory Commission, the State would encourage
deploying rooftop solar photovoltaic power plant for generation and sale of electricity to the
Distribution Licensee of the State. The Nodal Agency shall formulate suitable approach, after due
public consultation process and organize a competitive bidding for allotment of the capacities to the
suitable eligible entities.
The Electricity Regulatory Commission shall announce separate feed-in tariff applicable to rooftop
solar photovoltaic power plants, after considering the State specific parameters. The feed-in tariff
shall act as a ceiling limit in the competitive bidding process organized by the Nodal Agency.
Segment II: Generation and Sale of Electricity to a Person other than Distribution Licensee
The State shall promote implementation of solar power plant and sale of electricity generated to a
Person other than the Distribution Licensee. The Nodal Agency shall extend its support for
implementation of solar power plants under this segment.
The Electricity Regulatory Commission shall announce suitable provisions for the development of the
plants under this category.
Segment III: Generation, Captive Consumption and injection of surplus Electricity under Net
Energy Metering Mechanism
The State shall promote development of rooftop solar photovoltaic power plants implemented by any
Person for meeting its own electricity requirements and injecting surplus electricity into the
distribution system.
A suitable framework for the implementation of net energy metering mechanism shall be specified by
the Electricity Regulatory Commission for the development of plants to promote captive consumption
of electricity.
The State shall encourage implementation of grid interactive rooftop solar photovoltaic power plants
as under,
Government/Public Institutions
i) The State Government shall promote deployment of rooftop solar photovoltaic power plants for
captive/self-consumption on the offices of the government organisations, government owned or
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aided hospitals, research institutions, educational institutions, hostels & training institutions,
libraries, rest houses, holiday homes, inspection houses etc.
ii) All the aforementioned institutions shall implement grid interactive rooftop solar photovoltaic
power plant and generate & consume some percentage of their annual electricity consumption
from such plant.
Private Institutions
i) The State Government shall promote deployment of rooftop solar photovoltaic power plants on
the premises of residential buildings/colonies/townships, societies, hotels, private guest houses,
private transit hostels, private students hostels, marriage houses, commercial establishments,
cinema & theatres, private hospitals, private ware-houses, industries etc. All the aforementioned
institutions shall be encouraged to implement rooftop solar photovoltaic power plant, of suitable
capacity, on the roof of their premises/area, generate the electricity for sale to the distribution
licensee or for their self-consumption.
The State Government shall encourage the local urban bodies for making suitable amendments in the
existing building bye-laws to encourage rooftop solar photovoltaic power plants.

9. Implementation Plan for Decentralized & Off-Grid Solar Applications

The Government will also promote decentralized and off grid solar applications, to meet the
requirements of electricity and thermal energy, as per the guidelines issued by Ministry of New and
Renewable Energy.
To comply with the minimum targets envisaged under the policy the Nodal Agency shall identify
priority areas/sectors for deployment of decentralized and off grid solar photovoltaic power plants
include solar photovoltaic standalone power plants, solar home lighting systems, street lighting
system, solar pumps etc. and take necessary action, in time bound manner, to implement the off grid
solar systems in those priority areas/sectors with the approval of the Government.
Further, for the utilization of solar energy for thermal applications, the Nodal Agency shall take
necessary action to proliferate its application in feasible sectors including residential (solar water
heaters, solar cookers, in-door air heating etc.), commercial & industrial sector (solar cooling, solar air
dryers, large scale solar water heaters, large scale solar cooking utilizing solar concentrator
technology, process heating etc.).
The Electricity Regulatory Commission shall assess the benefit of the deployment of decentralized
and off grid solar application for electricity and thermal applications on the overall electricity system
of the State and shall introduce provision of offering suitable incentive to the eligible entities for large
scale adoption in different sectors.

10. Incentives
The following incentives shall be available to the solar plant implemented by the eligible entities, as
applicable, during the Operative Period of the policy,

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A) Exemption from the payment of Electricity Duty and Cess

The electricity generated from solar power generating plant and consumed for its own use by
any Person, shall be exempted from payment of the Electricity Duty and Cess as specified by
the State Government, for a period of 10 years from the date of commissioning of the power
plant. Provided the categories exempted from payment of the electricity duty as specified
under The Electricity Duty Act and/or Rules or any other guideline, if announced, by the State
Government shall be applied.
B) Industry Status
All solar plants shall be treated as industry under the schemes administered by the State
Industrial Department and incentives available to industrial units shall be available to the
solar plant developers.
C) Payment of Open Access Charges
The applicability of payment of Open Access Charges and Losses will be following the terms
and conditions specified by the Electricity Regulatory Commission, from time to time. The
Electricity Regulatory Commission shall consider for exemption of payment of Open Access
Charges for a suitable term if the Electricity is Generated and Consumed within the State.
D) Exemption from payment of Conversion Charges
The implementation of rooftop solar photovoltaic power plant shall be permitted by the State
planning department, after necessary scrutiny. The residential consumers opting for
implementation of rooftop solar photovoltaic power plant under sale to grid shall be exempted
from conversion of house tax to commercial tax.
E) Exemption from the payment of VAT & Entry Tax
The equipment purchased for installation of solar plants shall be exempted from payment of
VAT and entry tax.
F) Wheeling Charges
The applicability of payment of wheeling charges and losses will be following the terms and
conditions specified by the Electricity Regulatory Commission, from time to time. The
Electricity Regulatory Commission shall consider for exemption of payment of Wheeling
Charges for a suitable term.
G) Cross Subsidy Surcharge
For a period of 10 years from the date of commissioning of the power plant, the cross subsidy
surcharge shall not be levied for Sale of electricity to a Person other than Distribution
Licensee. Provided that the Sale of electricity is taking place within the State boundary.
Provided also that the buyer is maintaining its contracted demand with the Distribution
Licensee.
For captive consumption, cross subsidy surcharge shall not be levied.
H) Banking
The banking of electricity, under which a captive generating power plant supplies electricity
to the grid with the sole intention of exercising his eligibility to draw back this power from
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the grid for its own use, shall be as per the directions of Electricity Regulatory Commission.
The Electricity Regulatory Commission shall consider for exemption of payment of Banking
Charges for a suitable term.
I) Height of the module structure
The height of the module structure carrying rooftop solar panels, in addition to the building
height, shall not be counted towards total height of the building as permitted by building bye
laws.

11. Role of Nodal Agency

The Nodal Agency shall facilitate the eligible entities in implementing the solar plant and undertake
following activities,
A) Announcement of Scheme
The Nodal Agency shall bring out a comprehensive scheme to implement the targets specified
under the policy. The scheme should elaborate the appropriate process for invitation of
bids/applications, incentives and central financial assistance, if any, targets, implementation
mechanisms etc.
B) Allotment of the Solar Power Capacities
The Nodal Agency shall, from time to time, undertake the process for allotment of solar
power capacities to the project developers. The Nodal Agency in consultation with the related
stakeholders shall announce the process for allotment of solar power capacities.
C) Facilitation in Development of Power Plant
The Nodal Agency shall, facilitate the project developers in arranging right of way, supply of
water, obtaining necessary clearances and approvals from different Government departments.
D) Identification of Government Land Banks and facilitation of its allotment for Solar
Power Plant development
The Nodal Agency shall identify government land banks and shall coordinate with the
Government departments, prepare transparent procedure, take necessary approvals and
clearances for the allotment of Government Land to the project developers for the
development of power plant. The Nodal Agency may specify suitable fee payable by the
project developers, after due approval by the Government.
E) Support in establishing Protocols/Procedures for easy adoption of Solar Power
The Nodal Agency shall also support the distribution licensee in developing the protocols and
procedures for metering, connectivity with the electricity system, and power purchase
agreements etc. for easy adoption of rooftop solar photovoltaic power plants by the
stakeholders.
F) Identification of Sites for Deployment of Rooftop Solar Photovoltaic Power Plants
The Nodal Agency shall facilitate the project developers in identifying the technically feasible
sites/roofs under jurisdiction of the State Government for deployment of rooftop solar
photovoltaic and other small scale solar power projects. The Nodal Agency may charge
nominal fee for extending its services. The Nodal Agency shall also encourage deployment of
solar power projects on sites/roofs under jurisdiction of private institutions/buildings.
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G) Support in availing the Subsidy

The Nodal Agency shall facilitate the solar plant developer(s) to avail the subsidy available
from Central and/or State Government.
H) Amendment in Bye-Laws
The Nodal Agency shall coordinate with the Housing and Urban Planning Department,
identify and recommend necessary amendments in the Bye-Laws to facilitate extensive
adoption of rooftop solar photovoltaic power plants.
I) Capacity Building & Awareness
The Nodal Agency shall organize Capacity Building & Training Sessions for participation by
the segment stakeholders. The Nodal Agency shall also take necessary steps in creating
awareness among the citizens of the State.
J) Strategy for the development of Solar Segment
The Nodal Agency shall arrange to formulate a strategy for the overall development of solar
segment in the State with special emphasis on creating market for service providers, small and
medium enterprises etc. The report shall be submitted for the consideration of the State
Government on yearly basis. The Nodal Agency shall also ensure accessibility of quality
equipment as per standards specified by appropriate agencies including Ministry of New and
Renewable Energy.
K) Coordination with MNRE for Technical Specification
The State shall follow the technical specifications and standards as specified by the Ministry
of New and Renewable Energy, from time to time. The Nodal Agency shall provide its inputs
to the Ministry of New and Renewable Energy for specifying standard new or amending
existing technical specifications for different component of solar plant (photovoltaic and
thermal).

12. Roles of the Electricity Regulatory Commission

The Electricity Regulatory Commission shall on priority basis, notify appropriate regulatory
framework for the promotion and deployment of utility scale solar power plants and grid connected
rooftop solar photovoltaic power plants in the State. The regulatory framework shall include the
enabling provisions for the implementation of the policy.

13. Role of State Transmission & Distribution Licensee

The State Electricity Transmission and Distribution Licensees shall extend their support and guidance
to the eligible entities in installing solar power plants and their connectivity with their electricity
system. They shall comply with the regulatory framework specified by the Electricity Regulatory
Commission and provision contained in this Policy.

14. Metering Arrangement

The metering arrangement should comply Central Electricity Authority (Installation and Operation of
Meters) Regulations, 2006, Central Electricity Authority (Installation and Operation of Meters)

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Amendment Regulations, 2010 and Central Electricity Authority (Installation and Operation of
Meters) Amendment Regulations, 2014, as applicable.

15. Evacuation Facility and Connectivity with the Electricity System

The voltage of evacuation of electricity generated, from the solar power plant, shall be governed by
the directions of the Electricity Regulatory Commission. The evacuation infrastructure for the solar
power plants shall be developed and augmented, wherever necessary, by the State Transmission
Licensee and/or the Distribution Licensee, as the case may be.
The connectivity of the solar power plant with the electricity system at voltage level 33kV and above
shall be governed by the Central Electricity Authority (Technical Standards for Connectivity to the
Grid) Regulations, 2007 and amendment thereof whereas the connectivity of the solar power plant
with the electricity system at voltage level below 33kV shall be governed by the Central Electricity
Authority (Technical Standards for Connectivity of Distributed Generation Resources) Regulations,
2013.

16. Procedure for Interconnectivity with the Electricity System

The procedure for interconnectivity of solar power plant with the electricity system of the licensee
shall be in accordance with the provisions laid by licensee and approved by the Electricity Regulatory
Commission The licensee within one (1) month, from the date of publication of this policy under
official gazette, shall establish the procedure for interconnectivity of solar power plants its electricity
system.

17. Financial Arrangement & Support

The following financial arrangements shall be available for the promotion of solar power plant,
A) Budgetary Support
The Nodal Agency shall undertake detailed assessment of the support required for
encouraging implementation of targets identified under this policy for implementation of solar
plants and submit the fund requirements for consideration of the Government for budgetary
support.
B) Creation of Green Fund
The State Government shall devise creation of a Green Fund through imposition of suitable
cess on the consumption of electricity. The fund so created shall be utilized for organizing
capacity building and training programme, creating awareness, offsetting the upfront capital
cost, interest subvention through Banks and any other aspect deemed necessary for the easy
adoption of solar plants in the State.
C) Through Private Investment
State Government shall attract private investments for installation of solar plants. The Nodal
Agency shall facilitate and provide clearances and approvals from concerned departments.

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18. Monitoring of Parameters

All solar power plant developers reaping benefit under this policy shall need to install equipment to
monitor solar irradiance, wind speed, ambient air temperature, and electricity generated and injected
into the electricity system or self-consumed furnish from such solar power plant. The solar thermal
plant developers shall need to install equipment to monitor solar insolation, thermal heat generated
and related parameters. The monitoring report shall be submitted to the Nodal Agency on regular time
period for the useful life of the plant through online mechanism. The Nodal Agency shall develop
necessary infrastructure to record such parameters.

19. Empowered Committee

To oversee, monitor and resolve various issues arising out of this policy, an Empowered committee
will be constituted under the chairmanship of the Chief Secretary of the State. The committee will
have the following members:Chief Secretary
Secretary /Principal Secretary Urban Development
Secretary /Principal Secretary, Renewable Energy
Secretary /Principal Secretary, Finance
Secretary /Principal Secretary, Planning
Secretary /Principal Secretary, Irrigation
Secretary /Principal Secretary, Revenue
Secretary /Principal Secretary, Energy
Managing Director, Concerned Distribution Licensee
Director, Nodal Agency

- Chairman
- Member
- Member
- Member
- Member
- Member
- Member
- Member
- Member
Member Secretary

The Chairman of the Committee is empowered to co-opt subject matter expert/s, if required. The
Committee shall be authorized to deliberate and decide on aspects related to implementation of this
policy on its own motion or on the written representations by the Stakeholder.
The Empowered Committee shall therefore provide their recommendations on,
a. Approval of the project(s) with capacities more than 50 MW at single location
b. Resolving key bottlenecks in implementation of solar power plants
c. Deliberating on aspects to create fund for the development of grid connected rooftop solar
photovoltaic power plants
d. Issues regarding facilitation of framework for interconnection with the network of distribution
licensee
e. Resolve any other Inter departmental issue that arise from time to time
f. Any other relevant aspect

Principal Secretary
(Government of ----------------)
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