Uttar Pradesh Solar Energy Policy2024-05-03T13:10:59+05:30

The Uttar Pradesh solar energy policy was launched in 2022 and is applicable till 2027.
The state government has made provisions and announced incentives for solar installations in residential sectorscommercial sector, agricultural Sector.

The policy especially talks about RESCO, Open Access, energy banking, group and net metering models.

Target: 22 GW Capacity
Implementing Agency: UPNEDA

 Residential

Targeted Capacity: 4.5 GW

  • Additional state subsidy of up to ₹30,000/consumer
  • No Permission required for construction of necessary structures on roof for installation.
  • Such Structures under 4.5m will not be included in building height.
  • Inspection by State Electrical Inspector not required for grid connected Solar Power Plants of up to 10 kW.

          Solar Subsidy

  • State will disperse a subsidy of up to ₹30,000/consumer for residential grid connected solar systems.
  • The consumer to also get a CFA of up to 18,000/kW from the central government.
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Net Metering for Rooftop Solar

  • Min. Limit: 1kW
  • Max. Limit: 2 MW
  • Government educational institutes and state buildings/office buildings can now avail net metering
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Commercial

Targeted Capacity for Utility Scale Solar Projects/Parks: 14 GW

  • Solar Rooftops of maximum 2 Megawatt capacity are allowed
  • MSME and Start-ups will be promoted for installation of Solar Rooftops
  • Govt. to create a land bank to public and private companies to set up solar project.
  • 100% banking of energy in every financial year permitted.
  • 100% exemption from electricity duty for 10 years.

          For open access solar park projects

  • Sale of 100% power to third-party from projects above 1 MW allowed.
  • Land to be leased to private sector at rate of ₹15,000 per acre per year for 30 years.
  • Connectivity to the nearest grid substation to be provided

          For all solar projects above 1 MW:

  • 100 % exemption on Stamp duty on the land bought/leased for solar
  • Exemption of 50 % on wheeling charges/transmission charges on intrastate sale of power
  • 100% exemption on cross subsidy surcharge and wheeling charges/Transmission charges on purchase of solar power
  • Development of large floating solar power projects on canals/reservoirs to be promoted

          Capital Subsidy:

  • Subsidy of ₹2.50 Cr/MW for utility scale solar power projects above 5 MW, set up with 4 hours battery storage system.
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 Agricultural

Targeted Capacity for PM Distributed Solar Generation: 2 GW

  Subsidy for farmers under PM Kusum Component C:

  • Scheduled Tribe, Vantangia and Musahar: 70% subsidy
  • Other Farmers: 60% subsidy
  • For grid connectivity of Standalone Solar Power projects of 5 MW and above in Bundelkhand and Purvanchal regions, government will cover a portion of construction cost of the transmission lines.
  • Project allocation will be through Competitive bidding (VGF/Tariff based) based on state/central guidelines.
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