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

Rajasthan is an ideal location for generating solar energy, due to its massive amounts of unused land and the constant sunlight. Uninterrupted sunlight leads to better energy generation.

This is also one of the reasons why Rajasthan is India’s largest producer of solar energy, with an installed capacity of 24.1 GW ( as of August 2024). The opportunities for solar energy-related projects and businesses are immense in the state.

Residential Solar consumers and housing societies can avail central financial assistance (CFA) by applying directly on the National Portal for Rooftop Solar. The details of this subsidy are as follows:

• From 1kW to 2kW: ₹30,000/ kW
• For 3kW: ₹30,000/ kW for the first 2kW and ₹18,000/kW for all additional capacity
• Above 3kW: a fixed amount of ₹78,000 will be given.

This incentive is available across India to consumers that install grid-connected rooftop solar systems. If the roof space is limited, individuals can also install solar panels on terraces, balconies, or elevated structures (carport etc.) and claim subsidy.

Rajasthan is India’s largest state and it harbours the massive Thar Desert. It is located in the north-western section of the country. The state has few cloudy days, making it perfect for solar power generation.

Rajasthan has a total of 29858 MW of renewable energy capacity installed. Solar power takes the lead with 24102 MW, followed by wind at 5195 MW. Under the Solar Energy Policy 2019, the state is targeting to generate 30GW of solar power by 2024-25.

Rajasthan’s natural climate has always been suitable for renewable energy generation and policies have aided in providing the necessary support for the sector to expand. The state government also provides many concessions for renewable energy projects, in addition to infrastructure support for the burgeoning sector.

Under the Rajasthan Investment Promotion Scheme 2019, the state government has designated renewable energy as a priority sector.

In February 2024, PM Narendra Modi inaugurated solar and power transmission projects worth ₹7,400 crore in Rajasthan. Moreover, the centre is also developing 9 solar parks with a capacity of 7+ GW in the state.

In 2023, Rajasthan introduced its Renewable Energy Policy 2023, aiming to achieve 90 GW of renewable energy capacity by 2030, including 65 GW from solar power. The initiative will create approximately 1, 11,000 jobs in the state.

The new policy aims to promote rooftop solar, off-grid solar, manufacturing, etc. in Rajasthan. Moreover, the Rajasthan government is also planning to promote wind-solar hybrid projects to achieve its massive capacity targets.

In February 2024, the state raised the net metering cap to 1 MW. This move will allow commercial and industrial consumers to sell their surplus power to the grid and be compensated for it.

RRECL, as the state government agency in charge of promoting renewable energy, has worked tirelessly to make power generation projects easier to build and to evacuate the generated electricity. For the first seven years, the RIPS 2019 grants renewable energy projects a 100 percent stamp duty and land tax exemption.

There is a 90 percent SGST subsidy for solar, wind, and hybrid energy equipment production, as well as a 50 percent employment subsidy suggested under the investment promotion scheme, among other perks. In addition to the thrust sector benefits granted in RIPS 2019, megaprojects can apply for a customized package.

Reliance New Energy Solar Limited, the subsidiary of Reliance Industries has signed a Letter Of Intent (LOI) with the state, to invest Rs 1 lakh crore for the generation of 20,000 MW of solar power.

Moreover, Greenko Group has proposed an investment of Rs 30,000 crore in a Wind-Solar Hybrid Power Project with a capacity of 4,500 MW.

The state government has also allotted government land measuring 2,397.54 hectares in Bandha village of Jaisalmer district to Adani Renewable Energy Holding Four Limited to set up a 1GWp solar power project.

JSW proposed Rs 48,500 crore in solar projects with a capacity of 10,000 MW, whereas Renew Power, proposed 10,000 MW solar projects with an estimated expenditure of Rs 30,000 crore. In addition to this, the National Thermal Power Corporation has been growing its renewable energy base in Rajasthan, alongside commercial companies.

In October 2022, the state hosted the Invest Rajasthan Summit 2022. At the event, two major players in the energy sector, Tata Power and Adani Group announced plans to invest in megawatt-scale projects in Rajasthan.

Tata Powers has plans to develop utility-scale solar projects of 8000MW capacity, 1000MW of rooftop projects, and install 1,50,000 solar pumps. Adani group, on the other hand, is planning to invest Rs 65,000 crores to develop solar projects of 10,000MW capacity in the state.

Further, two fossil-fuel-based PSUs, Coal India Ltd, and ONGC (Oil and Natural Gas Corporation) are also planning to develop gigawatt-scale solar projects in the state.

How Can We Help?

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