Solar in Uttar Pradesh: Potential, Policy and Solar Subsidy (2024)

In 2022, the UP government launched an ambitious solar policy with massive installation targets and has already begun implementing it. The state government is planning to unveil Ayodhya as its first solar city, and has launched an aggressive campaign to solarize 25,000 homes in Varanasi within the next two months!

Let’s take a deep dive into the solar potential of the state and understand how beneficial it would be for a consumer to invest in a solar power plant here.

Solar Subsidy in UP

As part of the new solar policy, the UP government offers a solar subsidy in addition to the Central Financial Assistance (CFA). The incentive was introduced to promote grid-connected rooftop solar installations in the residential sector.

UPNEDA provides a subsidy of ₹15,000/kW with a maximum limit of ₹30,000/– per consumer. The money is reimbursed after the successful installation of the solar plant.

Apart from this, residential consumers and RWAs can also claim Central Financial Assistance (CFA) directly from the national portal. The details of that subsidy are as follows:

Solar Policy 2022

Toward the end of 2022, the UP government approved a new solar policy that will be in effect till 2026-27. The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) will act as a nodal agency for implementing it.

Some of the key highlights of the document are as follows:

• The state government plans to establish solar cities, aiming for a minimum 10% reduction in traditional electricity consumption by transitioning to renewable energy sources.
• UPNEDA will create a land bank, with areas that are not suitable for agriculture for the development of solar projects.
• Government buildings, including schools and Anganwadi centres, will be solarized.
• The net metering facility will also be given to residential consumers, government-owned public sector buildings, and all educational institutions.
• The government will promote the development of solar parks
• Solar equipment manufacturing units will receive a ten-year electricity duty exemption, promoting local product growth.

Potential of Solar

Uttar Pradesh experiences more than 300 days of sunshine. This abundant sunlight can easily be transformed into electricity. In fact, studies have shown that the solar potential of the state of around 22.83 GWp.

UP’s current solar capacity is 2.5 GW. However, judging by the initiatives and measures introduced by the UP government in the past 5 years, we can say that the state is on the path to harness its massive solar potential.

The state also recently announced Solar Policy 2022, with the target to generate 22 GW of solar power by 2026-27. Under this policy, UP is developing Ayodhya as a solar city and has approved a 40 MW project in the city.

In a bid to reduce air pollution and offset emissions, the state has also begun integrating solar with the transportation sector. The state has launched solar-powered ferry rides and has unveiled plans to install solar panels on the entire 296km stretch of Bundelkhand Expressway.

The government has also stated that it has received investment commitments of ₹2 lakh crore after the launch of its new solar policy.

Supplied by Ornate Solar

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