Gujarat Solar Energy Policy

Gujarat Solar Energy Policy Updates 2017

The 50 percent cap of the approved load or contracted demand by small residential rooftop owners has been removed by the government of Gujarat enabling the residential consumers to install rooftop solar systems of any capacity of their own. The order came in effect from April 13, 2017. The cap has only been exempted for residential consumers and the 50 percent of the maximum sanctioned load/contract demand for the first two years of the connectivity agreement is still applicable.

OBJECTIVE

The objective of the Gujarat solar Energy policy includes:-

• Promotion of green and clean power.
• Reduce the State’s carbon emission.
• Reduce dependency on fossil fuels and the cost of renewable energy generation.
• Promote investment, productive use of barren and uncultivable lands.
• Employment generation and skill enha-ncement in the renewable energy sector.
• Encourage growth of local manufacturing facilities in line with the ‘Make in India’ programme.
• Promote R&D and innovation in renewable energy.
• Promote roof-top solar power for house/ building owners.
• Distribution of solar-powered pumps to farmers and standalone photo-voltaic (PV) systems for domestic use.

APPLICABILITY

Gujarat Solar Energy Policy is applicable for the following solar projects set-up within the state-

ROOFTOP SOLAR PV SYSTEMS WITH NET METERING

a. The State will facilitate rooftop solar PV systems with net metering on government, residential, industrial and commercial buil-dings.

• This includes projects which are funded and owned by developers.
• Industrial, Commercial and Other Con-sumers shall be provided with two options for contractual arrangement as a part of promotion for rooftop solar systems.

b. Solar projects set up for captive use, both directly or under the REC mechanism

• Discoms, in order to meet their RPO, may purchase solar power, both PV and solar thermal, from Developers at a power purchase rate determined through com-petitive bidding.
• Solar Developers may set up solar power projects under the REC mechanism.
• The power generated from these projects may be purchased through long term PPA by Discoms.
• Solar power projects may be set up under NSM with sale of power to SECI, NVVN, or any other such designated agencies.
• Solar Developers may set up SPGs for sale of power to third parties under Open- Access, both directly or under the REC mechanism.

AGRICULTURE SOLAR PUMPS

• The State Government in collaboration with the Central Government/ MNRE/ MoP/ Multilateral Agencies will undertake mea-sures to provide solar powered pump sets through subsidy support.
• In case of surplus power generation from the solar pump sets, the Discoms may buy this surplus solar energy at APPC rate of the year in which the solar pump set is commissioned.
• The solar energy generated by the irrigation pump sets shall be credited towards the Discom’s RPO

CANAL-TOP AND CANAL-BANK 

Solar PV Projects

• All provisions related to transmission and wheeling charges/ losses, energy accou-nting, RPO/ REC, etc. of this Policy shall also be applicable to canal-top and canal-base projects as per the respective project cate-gories indicated in this Policy.All incentives provided by MNRE shall be applicable to such projects.

SOLAR PARKS

The state government launched “Gujarat Industrial Policy 2015” (Industries and Mines Department) and envisions to boost the renewable sector through its provisions. This policy promotes the “Make in India” campaign and provides for subsidy benefits, simplification of procedures, strengthening single window system, etc. to manufacture in the State.

ELIGIBLE ENTITY

Any company or body corporate or ass-ociation or body of individuals, whether incorporated or not, or artificial juridical person shall be eligible for setting up of SPGs, either for the purpose of captive use and/ or for selling of electricity to the Distribution Licensee/ Third Party whether or not under the renewable energy certificate (REC) mechanism in accordance with the Electricity Act-2003, as amended from time to time. The entity desiring to set up a solar power project shall submit a proposal, with requisite details to the State Nodal Agency (SNA), as may be specified by the SNA, for qualifying for the benefits/facilitation under this Policy.

ELIGIBILITY FOR ROOFTOP

• Consumer shall own the Rooftop Solar PV System set up on its own premises or premises in his legal possession.
• Consumer needs to consume electricity in the same premises where Rooftop Solar PV System is set up.
• Consumer shall ensure capacity of Rooftop Solar not to exceed 50% of his contract load/ demand/sanctioned load during initial 2 years of the connectivity agreement.
• Consumer has to meet the standards and conditions as specified in Gujarat Electricity Regulatory Commission Regulations and Central Electricity Authority Regulations and provisions of Government of Gujarat’s Solar Power Policy 2015 for being integrated into grid/distribution system.

SECURITY DEPOSIT

In case, Obligated Entities decide to procure solar power from the Solar Project Developers and sign Power Purchase Agreement, the Developer shall be required to provide Bank Guarantee at Rs. 25 lakhs per MW for MW scale and proportionate amounts for kW scale projects at the time of signing of Power Purchase Agreement with Obligated Entities. The bank guarantee shall be refunded, if the developers achieve commercial operation within time period mentioned in Power Purchase Agreement. In case the Deve-loper fails to achieve commercial operation as specified in the Power Purchase Agreement, the bank guarantee shall be forfeited.In every case, whether Obligated Entity is procuring or not procuring solar power, SPGs shall submit security deposit of INR 5 lakhs per MW to STU/DisCom for ensuring speedy and timely completion of evacuation facility by SPG failing which bank guarantee may be forfeited.

INCENTIVES

• Solar Power Generators (SPGs) installed and commissioned during the Operative Period shall become eligible for the benefits and incentives declared under this Policy, for a period of 25 years from their date of commissioning or for the lifespan of the SPGs, whichever is earlier.
• The Government of India has launched the Modified Special Incentive Package Scheme (M-SIPS) to provide incentives and attract investments in electronic systems design and manufacturing industries. These industries include manufacturing of polysilicon, ingots and wafers, crystalline/ polycrystalline cells and modules, thin-film modules, transformers and allied electronics. The manufacturer/ Developers may avail the benefits of this scheme.
• Exempted from payment of electricity duty for sale through all modes / self consumption / sale to third party/sale to licensee.
• Cross subsidy surcharge exempted for SPV projects under Net-Metering & sale of power to Discoms and for captive consummation.
• Developer to pass 50% on the gross benefit of CDM the distribution licensee
• SPGs installed and commissioned during the period to be eligible for the incentives, for a period of 2 years from the date on commissioning