2. Solar Policies of States in India and its
Comparison
Nilesh Dayalapwar
Symbiosis (SIIB)

3. Solar & Electrification Policies
Overview
1974-79 Minimum Needs Program: 60% of villages to be electrified
under REC.
1988-89 Kutir Jyoti Scheme: Single point light connections to
households Below Poverty Line.
2006- REC Policy, 2007 – Semiconductor Policy.
2005 Rajiv Gandhi Vidyuktikaran Yogana: Major initiative towards
Universal electrification 90% Central Govt 10% REC to State Govt.
2009 Nov Jawaharlal Nehru National Solar Mission(JNNSM): 20000
MW by 2020.
2009 Dec CERC: Announces tariff for Renewable power generation
for a period of 25 years.
2010 June: JNNSM Launch target to be achieved by end of13th Five
year plan. Guidelines for Off grid and decentralised Solar
Applications.
2010 Sept: Tariffs for Solar projects where PPA’s after 31st Mar’11 to
rs 15.39 for PV and rs 15.04 for Solar thermal Projects.

4. National Solar Mission
• Major initiative of Central Government to promote
Ecologically sustainable growth also keeping in mind the
country Energy Security Challenge.
• Its planned for a 50% distribution of Photovoltaic and the
remaining for Concentrated Solar Thermal Power.
• JNNSM
• Evaluated after each phase on the basis of local and global
 Capacity
 Targets
 Emerging costs
 Technology
PHASE 1
2012 – 13
1200MW
PHASE 2
2013 – 17
9000MW
PHASE 3
2017 – 22
20000MW

5. JNNSM

6. Objectives of JNNSM
The major objective is to create an enabling environment for solar
technology penetration in the country at a Centralized and De-
Centralized level.
Comprehensive framework for development of solar power in
India.Covers both solar power generation as well as manufacturing.
Incorporates specific fiscal / monetary incentives.
Installed solar power generation capacity of 20 GW by 2020; 100 GW
by 2030 and 200 GW by 2050.
To achieve grid parity by 2020.
To achieve parity with coal-based thermal power generation by 2030.
4-5 GW of installed solar manufacturing capacity by 2017.
20 mn solar lighting systems for rural areas by 2022.
2000MW by creating off grid applications.

7. STATES POLICY
LAUNCH
INSTALLED
CAPACITY
(MW)
PROJECTED
CAPACITY
(MW)
SOLAR
INSOLATION
KWh/m2
GUJARAT 2009 856.81 117 6-7
RAJASTHAN 2011 608.5 12000
YR_2021
6.5-7
MAHARSTRA 2011 28.8 500 YR_2016 5.5 -6
TAMILNADU 2012 21 3000 YR_2015 5 - 5.5
KARNATAKA 2011 24 200 YR_2016 5.2 – 5.6
UTTARPRADESH 2013 17 500 YR_2017 4.4 -5
BIHAR 2011 NA NA 4.4 -5
UTTARAKHAND 2012 5 0 4.4 -5
PUNJAB 2013 12 NA 4 -5
MADHYA PRADESH 2012 45 280 YR_2017 5- 6
KERALA 2013 0.025 0 5- 5.5
ANNDHRA
PRADESH
2013 63 1000 – YR_
2017
5.7

8. STATES Tariff Structures (`/kwh)
GUJARAT Levelized tariff for 25 years 9.28 `/kwh, 8.63`/kwh and 8.03`/kwh
(12-13,13-14,14-15)
RAJASTHAN 9.63 `/kwh, 8.43 `/kwhFormer without A.D, latter with A.D
(Accelerated Depreciation ) 31-3-2014
MAHARSTRA 14.95 `/kwhfor Y’2010- Y’2011
TAMILNADU 5.78 `/kwh
KARNATAKA 14.50 `/kwh, before 31-3-2013
UTTARPRADESH NA
BIHAR
UTTARAKHAND 8.69 `/kwh
PUNJAB 8.75`/kwh and 7.87`/kwh – Before and after commissioned
MADHYA PRADESH 10.44 `/kwh
KERALA 17.91 `/kwh without A.D and 14.91`/kwh with A.D
ANDHRA PRADESH 6.49`/kwh

10. STATES FORECASTING AND SCHEDULING
GUJARAT SPG based generation shall not be covered under scheduling
procedure for Intra-state ABT
RAJASTHAN The solar energy generated for sale will not be covered under
scheduling procedure for Intra-state ABT
MAHARSTRA NA
TAMILNADU NA
KARNATAKA NA
UTTARPRADESH NA
BIHAR NA
UTTARAKHAND NA
PUNJAB NA
MADHYA PRADESH NA
KERALA NA
ANDHRA PRADESH NA

11. STATES ELECTRICITY TAX
GUJARAT Exempted from payment of electricity duty for sale through all
modes. Exemption from demand cut to the extent of 50% of installed
capacity .
RAJASTHAN The energy consumed by the Power producers for own use will be
exempted from payment of the electricity duty.
MAHARSTRA NA
TAMILNADU Exemption from electricity tax to the extent of 100% of electricity
generated from solar power used for self consumption/sale to utility
will be allowed for 5 years.
KARNATAKA NA
UTTARPRADESH NA
BIHAR NA
CHHATISGARH Incentives will be in force for a period of 7 years from the date of
implementation of the project.
PUNJAB NA
MADHYA PRADESH Policy provides 10-year (from COD) exemption in electricity duty
(including captive units),
KERALA NA
ANDHRA PRADESH NA

12. STATES WHEELING CHARGES
GUJARAT As determined by GERC from time to time.
RAJASTHAN The energy consumed by the Power producers for own use will be
exempted from payment of the electricity duty.
MAHARSTRA NA
TAMILNADU The wheeling and banking charges for wheeling of power generated
from the Solar Power Projects, to the desired locations for captive
use/third party sale within the State.
KARNATAKA In case of captive power plants and projects for sale of power to
third party other than ESCOMs, wheeling and open access charges
determined by KERC.
UTTARPRADESH NA
BIHAR NA
CHATTISGARH Shall be applicable based on the CSERC regulations.
PUNJAB NA
MADHYA PRADESH The policy provides a grant of 4% by the state under wheeling
charges to all solar power projects.
KERALA NA
ANNDHRA PRADESH Producer will bear the wheeling and transmission losses as per

13. ROOFTOP SOLAR POLICIES

14. WHY ROOFTOP SOLAR PV ?
Benefits of RFPV: Lower T&D losses; low gestation time; No additional land
requirement; local employment; Improvement in tail end voltages and reduction in
system congestion.
• India has very high
T&D with around 25%
(and R-APDRP is not
yielding the results)
• India has vast diesel
back-up capacities for
power outages and
captive use.
• Solar energy is already
cost competetive with
Commercial consumers
of power in certain states
of
India.
Distributed PV power generation makes sense
in India
BENEFITS TO
CONSUMERS
BENEFITS TO NATION
Local, available power
(higher supply security)
Reduced diesel subsidy
burden
Hedge against rising
power prices
Increased energy
independence
Reduced LCOE
(in some places)
Pressure off
distribution grids
Green Power (Marketing
Value)
Reduced air pollution
and CO2 emissions

15. INDIAN EXPERIENCE AND INITIATIVES
RFTV POTENTIAL – 20 GW TO 100 GW; JNNSM: FIT
AND NET METERING
State Policy Highlights
W. Bengal Net metering for 2‐100kW, 16MW rooftop and small installations till 2017.
Gujarat FIT/sale to utility model, 5MW rooftop in Gandhinagar, 5 more cities to
follow (Bhavnagar, Mehsana, Rajkot, Surat, Vadodara).
Kerala Off‐grid rooftop scheme (target 10,000 rooftops ~10 MW) with state
capital subsidy. 1 kW panel + inverter+ 7200 Wh Battery bank.
Consumers can choose from 14 empanelled companies
Karnataka Net‐Metering, 250 MW till 2014 as mentioned in policy. First program in 5
cities. (Bangalore, Mysore, Mangalore, Hubli and Gulbarga) projects of
two sizes – 0.5 kW (1297 nos) and 1 kW 646 nos) totalling to 1.3 MW.
SECI Total allocation 10 MW – Delhi, Bhubaneswar (1 MW each), Gurgaon,
Chhattisgarh, Bangalore, Chennai (2 MW each). System size – 100 ‐ 500
kWp, each bidder can bid between 250 kW and 2 MW capacity. 30%
capital subsidy
T. Nadu Generation Based Incentive model, 50 MW till 2015, details unclear.

19. 24,867
17,061
16,891
13,654
11,217
8,071
7,931
7,149
6,435
4,759
2,875
2,631
2,232
778
436
126
0 5,000 10,000 15,000 20,000 25,000 30,000
Norway
Canada
UAE
USA
Australia
Japan
France
Germany
Russia
S. Africa
World Avg
China
Brazil
India
Pakistan
Nigeria
Kwh/annum
India lacks significantly in Per Capita Consumption

20. 7.7%
7%
3%
10.5%
5%
2%
5.80%
4.90%
6.70% 5.50%
9.00%
0.50%
3.30%
0.0%
5.0%
10.0%
15.0%
Prime Lending Rates (2011) (%)
13% 13%
11%
9%
7%
9%
0
10
20
30
0%
5%
10%
15%
Indian
Commercial
banks
Indian
Specialised
IFCs
NCDs Multi-lateral
agencies
ECAs ECBs
Interest rate Repayment Years

22.  Many consumer tariffs (in the highest use
slab) are very close to solar costs; likely to
increase further while solar costs decrease.
 Align tariffs of high end usage to reflect solar costs to incentivize shift
to rooftop PV, else support for utility finances.
 Need for facilitating enabling eco‐system, instead of subsidising the
system cost through capital subsidies and adding to the budgetary
demand, policy should focus on removal of procedural
hurdles, permitting, and other barriers, in order to facilitate the quick
adoption and deployment of RTPV systems.
WAY FORWARD

23.  Proper Canal top solar policy.
 Proper policy for establishing solar power plants on Ash
Dykes.
 Forum of Regulators: Recommend a set of standard
guidelines
(banking, metering, interconnection, agreements etc).
 Ministry of New and Renewable Energy: National Net
Metering policy and study to gauge solar RTPV potential
in India.
 Central Electricity Authority: Grid interconnection
standards (finalised, to be notified by MoP).

24. Interest Subsidy / VGF for Solar Farm; Rs 15 L/
year/MW (for 5-years)
Higher number of RECs for Older Plants
World Class R&D Centre - High
efficiency Solar cells; Reduction in
BOS & Tracking system costs
Capital Subsidy / Incentives for domestic PV Mfg
projects – to offset interest & power costs
Domestic Content & ADD support for 2-3 years

25.  It is therefore clear that the gaps in the prevailing
policy are few but quite critical for effectively
unleashing the solar potential in India.
 The solutions are widely recognized and need to be
prioritized so as not to lose the momentum created
by the JNNSM and the state initiatives, and ensure
that India emerges as the global destination for
investment in solar energy.