The State Government of Mizoram has issued the Mizoram Solar Power Policy 2017. The policy is aimed at ensuring reliable power supply and a sustainable energy mix for the state. As per the policy, the state will develop 80 MW of solar projects (rooftop + ground mounted) to meet 10.5 percent renewable purchase obligation by FY 2021-22.
The policy has been released with immediate effect, according to a government release.
The policy encourages the use of solar power among consumers and flow of investment in to the solar sector in Mizoram.
- For grid-connected solar projects the individual owner or group can make third-party sale of power, sell it to distribution utilities, or utilize it for captive consumption.
- All buildings in the state are eligible to set up grid-connected rooftop solar projects within the specified capacity (1 kW and above) for rooftop solar projects.
- Net-meters will be installed so that consumers can avail direct benefits.
- The state has incentivized off-grid solar and decentralized distributed generation systems.
- Banking of 100 percent energy produced is allowed for captive and open access consumers.
- All solar power projects in the state are exempt from Electricity Duty. The Electricity Duty has also been waived for manufacturing facilities and ancillary units of the solar power projects.
- If a solar project is not utilizing the evacuation system of a distribution utility, a reduction in contract demand of up to 50 percent of installed project capacity is permissible by the distribution utility.
- The minimum duration of power purchase agreements (PPAs) will be 10 years.
- It has been mandated, the distribution utility that has entered into PPA with a project developer will provide letter of credit equivalent to two months’ expected payment as security.
- The government will provide 100 percent refund of stamp duty paid upon purchase of land for solar project.
The Mizoram government has provided a host of incentives to drive solar development in the state. There are incentives and subsidies for off-grid solar components as well as grid-connected systems so the state government can leverage benefits from the National Solar Mission (NSM) and Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY) to deliver on its over 9 GW solar generation potential.
To set up a microgrid of up to 10 kW an incentive of Rs.115/W is available. For a mini grid of 10 kW to 500 kW there’s an incentive of Rs.99/W, and a rooftop solar developer can receive 70 percent of the benchmark cost as incentive to develop a 1 kW to 500 kW.
To set up project in a solar park, a developer can receive an incentive of Rs.20lakh/MW and any unemployed person or farmer in Mizoram can receive an incentive of Rs.50lakh/MW.
The Mizoram Solar Power Policy 2017 is inclusive in its approach to attain the set solar target. By providing such large incentives to unemployed youth and farmers the government has taken a unique approach to solar development.