Renewable energy policy roundup from central, state and government agencies in India for the month of May 2017:

The Karnataka Electricity Regulatory Commission (KERC) issued an advisory to the state government of Karnataka, asking it to direct all distribution companies (DISCOMs) in the state not to enter into any new power purchase agreements (PPAs) with wind power projects until further review by the KERC.

The state government of Haryana has exempted solar materials and equipment from value added tax (VAT) in the state.

The Karnataka Electricity Regulatory Commission (KERC) has invited comments on the discussion paper “Revision of Generic Tariff for Wind Power Projects and Mandatory Procurement of Wind Power through Bidding.”

The Ministry of Power is proposing to set up a compensation mechanism for existing renewable energy projects which will enable them to protect the cash flows to an extent from grid curtailments and will also ensure a favorable operational environment for the renewables sector.

The Revenue Secretary at the Ministry of Finance, Mr. Hasmukh Adhia, has tweeted that “all solar equipment and its parts would attract 5 percent GST only.” He has given statements in the media confirming that GST rate for solar modules will be 5 percent instead of the 18 percent announced earlier.