Andhra Pradesh

Solar Power In Andhra Pradesh

Andhra Pradesh is one of the country’s top rice-growing states, as well as a major tobacco grower, that’s why it is known as the “Rice Bowl of India”. The state’s rivers, mainly the Godavari and Krishna, but also the Penneru, are important for agriculture. The Krishna River’s Prakasam Barrage in Vijayawada, Andhra Pradesh, India. You must first comprehend energy demand and the reasons for its rapid development before you can appreciate the opportunities for solar developer or solar business here. Let’s look at Andhra Pradesh’s electricity usage statistics to know the opportunity for solar power in Andhra Pradesh:

  • According to Aadhar statistics, the population of Andhra Pradesh in 2021/2022 will be 52,883,163 (52.88 million), up from 49,386,799. Andhra Pradesh’s population has grown at a 7.08% annual pace since 2011.

As we know, power consumption is also dependent on the population, because every single human being has its power requirement.

  • Andhra Pradesh has 14 major ports currently. The port of Visakhapatnam is one of India’s 13 major ports and the state’s only major port. It is India’s third-biggest state-owned port by cargo volume handled and the largest on the Eastern Coast.
  • Andhra Pradesh has 5 large solar plants with a total capacity of 4160 MW (4.16 GW). Along with this, soon this state will have a floating solar power plant of 25 MW capacity, which will be the largest floating solar power plant in India. Apart from this 15 MW solar power plant is also in process.
  • Andhra Pradesh has 97,428 MSMEs and 24,252 micro-units, employing approximately 10 lakh people.
  • The major economic sector is agriculture, which directly and indirectly employs 62% of the population. Apart from this, automobiles and auto components industry, mines and minerals, textiles and apparel, IT industry, Bulk drugs, and pharmaceuticals, horticulture, poultry farming are also the major sources of earning
  • About 237 million (approx.), according to the Andhra Pradesh State Tourism Development Corporation, with about 0.28 million foreign tourists arriving annually.

Power Generation Stats

To understand the potential for solar power in Andhra Pradesh, you must know about the total state’s commercial & residential structure along with the energy consumption (including generation).

As per stats,

  • In the 2018–19 fiscal year power consumption was 1234 units per capita with a gross electricity supply of 63,143 million kWh.
  • Andhra Pradesh’s total energy generation is 24,854 MW every year (2021) on average.

Power Goals of Andhra Pradesh for 2022-23

  • soon Andhra Pradesh will have a floating solar power plant of 25 MW capacity.
  • Andhra Pradesh plans to add about 16103 MW of clean energy capacity by end of 2023 & 27,921 MW by the year 2029.

Andhra Pradesh Solar Energy Policy

Andhra Pradesh is primed for fast industrial expansion, fueled by infrastructure investments, and has been chosen as one of the pilot states for the 24X7 – Power for All (PFA) scheme by the Ministry of Power.

Solar energy has the potential to become a significant source of power for the state as its needs expand. Agriculture consumes a significant amount of energy in AP, accounting for about 24% of the state’s overall energy usage. Solar energy can also be used to help shift the agricultural load and satisfy electricity demand during the day. The state administration is eager to harness the enormous solar potential and promote this clean source of energy to fulfill the state’s growing energy demands. Andhra Pradesh is an attractive location for solar power projects because of the following factors:

  • Approximately 300 bright days per year with solar insolation of more than 5 kWh/m2/day are available.
  • Among India’s best-performing electricity distribution firms (APEPDCL and APSPDCL).
  • A reliable and efficient evacuation system that allows for distributed generation.

Objectives

  • Aim for a minimum total solar power capacity addition of 5,000 MW in the next five years to meet the state’s growing power demand in an environmentally sustainable manner.
  • To create solar parks with the appropriate utility infrastructure to entice developers to build solar power projects in the state.
  • To promote the dispersed generation, which can help to reduce losses by eliminating upstream network costs.
  • Deploy solar-powered agricultural pump sets to meet farmers’ electricity needs during the day.
  • To encourage the development of local manufacturing facilities that will create jobs in the state.

Policy to Promote Rooftop Solar

  • Loan for solar as a part of home loan/home improvement loan
  • Loan up to Rs. 10 lacs available for individuals under Priority sector lending
  • The subsidy is applicable as per SECI guidelines.

Conditions

  • The cumulative capacity of all solar systems installed in your area shall not exceed 60% of the Local Distribution transformer capacity at the LT level and 100% at the HT level.

Policy to Promote Industrial Solar

  • 40% Accelerated Depreciation
  • 10 year Tax holiday on solar projects
  • Loans available for up to Rs.15 Crore for renewable energy projects under Priority sector lending

Conditions

  • The cumulative capacity of all solar systems installed in your area shall not exceed 60% of the Local Distribution transformer capacity at the LT level and 100% at the HT level.

Opportunity for Solar Developers in Andhra Pradesh

When it comes to solar energy production in the southeastern part of India, Andhra Pradesh has more than 300 sunny days, which is considered potentially sufficient for electricity generation.

Andhra Pradesh plans to add about 16103 MW of clean energy capacity by end of 2023 & 27,921 MW by the year 2029.

The key commercials of Andhra Pradesh are agriculture, automobiles and auto components industry, mines and minerals, textiles and apparel, IT industry, Bulk drugs, and pharmaceuticals, horticulture, and poultry farming.

Let’s analyze the state from the point of view of solar developers. The complete state is divided into three segments:

For Residential & Agricultural

The energy consumption of this segment is less in comparison to the other two segments. Up to 30kW solar solution is enough for Residential & Agricultural.

  • Andhra Pradesh’s population is 52.88 million (till 2021-22).
  • Andhra Pradesh’s total population, approximately 62% or 46 lakh families is dependent on agriculture.

For Small & Micro Businesses

The energy consumption of this segment is more than Residential & Agricultural & lies up to 2000kW, so 200Kw solar solution is enough for it.

  • Andhra Pradesh has around 31 big cities and 104 census towns in 13 districts.
  • Andhra Pradesh is estimated to have more than 316177 MSMEs. (the year 2018)

For Big Industries

The energy consumption of these industries is very big, so these industries need 200 kW & more capacity for the solar solutions.

  • In Andhra Pradesh, there are more than 272 registered factories & more than 250 IT companies.

How Can We Help?

Hope this information about “Protentional of Solar Power in Andhra Pradesh?” helps you.

If you are planning to start a solar business or install a solar solution, you can connect with Ornate Solar to get the best assistance with the best prices for solar panels and inverters. We are the official partner of Canadian Solar panels & Renewsys solar panels in India. We are also the official distributor of SolarEdge inverters with DC optimizers, Enphase microinverters, Fronius On-Grid Inverters, and Havells solar inverters in India.

For more information, please give us a call at 011 4353 6666.

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About The Author

Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.

kamini ornate

About The Author

Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.