Solar in Odisha: Potential, Policy and Solar Subsidy (2024)

Did you know that a recent study has revealed that the solar potential of Odisha is 7 times higher than MNRE estimates?

The eastern state, which produces a quarter of India’s coal annually, does not have a thriving renewable energy infrastructure at the moment. However, the state government is committed to changing that trend with its new renewable energy policy and bold initiatives.

In this blog, we’ll explore Odisha’s substantial solar energy capacity and understand the state’s renewable energy policy and subsidy guidelines.

Odisha government does not provide a separate state subsidy to consumers. However residential consumers from all over India can avail the Central Financial Assistance (CFA) and get up to 40% subsidy on their rooftop solar installation.

You can directly apply for the subsidy on the National Portal for Rooftop Solar (www.pmsuryaghar.gov.in) and track the complete process from application to fund transfer.

The subsidy details are as follows:

• From 1kW to 2kW: ₹30,000 kW
• For 3kW capacity: ₹78,000
• Above 3kW: A fixed subsidy of ₹78,000.

Odisha receives 280-300 days of sunshine, with an average irradiation level of 4.5-5.0 KWh/m2/day. Moreover, as per the MNRE, the state has a solar potential of over 25 GW. But, a new study by the International Forum for Environment, Sustainability, and Technology (iFOREST) reveals something interesting.

According to the report, the state’s actual potential is close to 170 GW! That is, counting the areas with low ecological significance such as mining wasteland, industrial wasteland, lands with open scrub and dense scrub, rocky/stony land, etc. Researchers state that such locations can be great for setting up solar plants and generating clean power.

Moreover, Odisha has over 204 reservoirs. Out of these, 125 are ideal for floating solar projects. By utilizing these sites, the state can add up to 6.7 GW of solar capacity.

Odisha’s current solar capacity is close to 460 MW. But the state government is striving to boost these numbers. In June 2023, Grid Corporation of Odisha (GRIDCO) signed an MoU with NHPC to develop at least 1 GW of solar energy projects in the state.

Moreover, Odisha has also introduced an ambitious renewable energy policy to expand its RE portfolio.

In 2022, the Odisha government launched a new Renewable Energy Policy with the target of reaching 10 GW RE capacity by 2030. The document primarily focuses on developing solar and wind energy projects.

As per the policy, the state will focus on developing floating solar and canal-top solar projects, utility-scale solar plants with a minimum capacity of 25 MW, and solar cities.

Towards this, the state government has introduced multiple steps such as:

• Exemption of 50p/unit on electricity duty for captive/open access consumers and energy storage projects
• Stamp duty on purchase/lease of land, land conversion charges, and registration charges will not be applicable for RE projects.
• Vacant government land will be made available for solar projects.
• Solar park developers will be allowed to sell the generated power within and outside the state.
• The development of solar cookers, solar water heaters, solar desalination, solar food dryers, etc. will be promoted at the local level.
• A new nodal agency will act as a single window for all approvals and allotment of RE projects.

Solar offers multiple benefits:

• Up to 80% reduction on electricity bills
• Low maintenance
• Long term Solution that lasts for over 25 years
• Reduced carbon footprint
• 40% solar subsidy for residential consumers
• Increased property value
• Contribution to India’s goal of net zero

A 1kW rooftop solar plant requires approx. 100-130sq.ft of shadow-free area. If you opt for a solution like Ornate InRoof, which turns solar panels into the primary roof, you would only need 60-65 sq. ft. of space for the same capacity.

Yes, you can avail net metering in Odisha.

The time it takes to make back your initial investment, also known as the payback period, varies based on factors like where your plant is, its size, electricity costs, equipment quality, and climate. On average, it usually takes around 4 to 6 years to recover your initial investment.

• Solar Subsidy in India Explained (2023)
• Solar Energy in Karnataka: Potential, Solar Policy and Subsidy (2023)
• Solar in Kerala: Potential, Policy and Solar Subsidy (2023)

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By not only partnering with the best-in-class solar brands but also producing our high-quality solutions, (panels, inverters, accessories, InRoof), we develop and deliver solutions that are modern, reliable, and effective.

If you are looking for high-quality solar solutions, reach out to us at 011 43536666 to discuss your options.