10‑year Duty Exemption for Electricity from Solar Projects in U.P.

In Clean News, News, Renewable Energy, Solar

Uttar Pradesh’s (U.P.) cabinet of ministers have approved the state’s Draft Solar Policy 2017 and given it a retroactive effective date of November 6, 2017. The policy will remain in place for five years or until a new policy is created.

Key Highlights –

  1. It aims to encourage private sector participation in Uttar Pradesh’s solar sector,
  2. provide solar power project investment opportunities,
  3. provide environmentally friendly and affordable power for all,
  4. and help to achieve the state’s eight percent solar renewable purchase obligation target by 2022.
  5. The minimum project size is 5 MW for standalone projects at a single location and projects will be only awarded through competitive bidding.
  6. The intrastate sale of solar power to any third party will be exempt from wheeling charges/transmission charges.
  7. To promote the large-scale installation of grid-connected rooftop systems with net-metering in private residential sectors, the state government will provide a subsidy of ₹10,000 (~$155)/kW up to a maximum of ₹20,000 (~$310)/kW per consumer on a first come, first serve basis for the first 100 MW of online applications submitted to the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).
  8. For 10 years, there will be an electricity duty exemption for the sale of electricity to a distribution licensee, captive consumption, and for third-party sale with respect to all solar projects set up within the state.

The Government of Uttar Pradesh has set a target of 10,700 MW for solar power, including 4,300 MW from rooftop solar projects, by FY 2022. As of October 2017, Uttar Pradesh had over 600 MW of large-scale solar installations and a development pipeline of around 350 MW.

Click here for ‘Uttar Pradesh Solar Power Policy – 2017

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