The Agency for New and Renewable Energy Research and Technology (ANERT) has issued guidelines to support the development of floating solar projects across Kerala.

The new ANERT guidelines identify two main categories of sites suitable for floating solar development.

The first includes the reservoirs under the Kerala State Electricity Board (KSEBL) and the Kerala Water Resources Department, which collectively offer a potential of 5,000 MW if just 10% of their area is utilized.

The second category encompasses backwaters, freshwater bodies formed from mining and quarrying activities, and lands rendered uncultivable due to salinity or other environmental factors. These sites can have a capacity of up to 1,500 MW with similar surface utilization.

Floating solar installations, especially those on water bodies and waterlogged lands, can be classified as temporary structures.

Institutional Mechanism

This framework is anchored by two key administrative bodies: the High-Level Committee at the state level and the District Level Committees at the local level. Both are supported by a centralized single-window portal that acts as the interface for submitting, tracking, and processing all project applications.

The High-Level Committee is the primary authority overseeing large-scale floating solar projects, particularly those in water bodies owned or managed by government departments such as the KSEBL and the Irrigation Department. The Committee evaluates the project feasibility based on ANERT reports covering technical, financial, and environmental aspects.

Following review, the Committee may grant final clearance for the project. It also determines lease rents or compensation for using government-owned reservoirs or other public resources and ensures that appropriate agreements are in place between developers and the managing agencies.

The Committee is also responsible for maintaining a project bank—a consolidated list of sites available for bidding or direct development after receiving preliminary clearance.

District Level Committees operate locally, particularly for projects with up to 5 MW capacities. These committees identify potential sites, including waterlogged areas, unused freshwater bodies created by quarrying or mining, and land unsuitable for cultivation.

Applications may be invited through government-issued notice inviting tender (NIT) or expression of interest (EOI), direct applications from developers, and proposals from developers using land bank sites.

Applications through government-issued NITs or EOIs

In this mode, the project site is identified by a government agency. The High-Level Committee clears the site for inviting proposals, and the location is notified for bids. This mainly covers projects proposed in government-owned dams and reservoirs.

ANERT prepares the EoI in consultation with agencies such as KSEBL, irrigation and Revenue departments. These agencies are expected to give clearances within 15 days; if not, approval is assumed to be granted.

The High-Level Committee will determine the lease rent for the dam or the site’s owner agency. District Committees can recommend potential sites to the Committee. ANERT will prepare a feasibility report for each site, which the Empowered Committee will review before the High-Level Committee’s final approval.

The approved sites will be added to a project bank, from which proposals will be invited through an online platform. The selection will be based on tariff-based bidding for sites where KSEBL agrees to purchase power. In other cases, selection will depend on revenue sharing per unit of energy or lease rent offered.

KSEBL will issue the bids for its own sites, and ANERT or a High Level Committee under it will handle the process for other sites. However, ANERT will only issue bids after receiving tariff, open access, and wheeling approvals from KSEBL. The distribution company will also provide grid connectivity at the closest feasible point.

Applications Directly Initiated by Developers

In this mode, developers identify the private sites and apply to designate them as project sites.

They must finalize lease or revenue-sharing arrangements with the landowners before applying. They must also receive clearances from the coastal zone authorities, fisheries departments, and other regulatory agencies.

Applications Proposed by Developers in Land Bank Sites

In this mode, District Level Committees will identify and publish land banks—lists of available areas suitable for floating solar projects. These can include waterlogged lands, unused freshwater bodies, and other identified locations.

The approval process will follow the same procedures as direct applications by developers. However, land under this mode will already have been assessed for basic suitability.

Central portal

All floating solar project applications must be submitted through a centralized single-window portal.

Developers must use the portal to submit proposals, including site details, technical designs, and finalized landowner agreements. Once submitted, the portal routes the applications to the relevant departments—such as Fisheries, Revenue, Irrigation, KSEBL, and environmental regulators—for review and decision-making.

Each department must provide approvals, rejections, or requests for additional information directly through the portal. The portal is also integrated with the land bank database, allowing developers to browse pre-cleared sites and submit proposals for those areas.

Lease rate

The lease rent for government or public land for these projects will be ₹1(~$0.012)/acre for the first ten years from the date of commissioning. From year eleven to twenty, the lease rent will be ₹1,000 (~$12)/acre, and from year twenty-one to thirty, the lease rent will be ₹2,000 (~$23)/acre. For private land, lease rent will be decided mutually between the developers and landowners.

Eligibility, Project Application and Execution

Qualifying developers must have implemented at least one-third of the proposed project capacity.

Developers must respond to formal notifications or bids issued on government-identified sites through the official project platform. Applications for private sites must be submitted directly through the same portal.

All floating solar projects will be developed under the build-own-operate model. Developers will retain rights to the project site for at least 25 years.

Project Development

Allotting government-controlled or public land for floating solar projects will follow a two-stage bidding process. In the first stage, developers will be pre-qualified based on financial and technical criteria in the bid documents. Only pre-qualified applicants will be considered in the second stage, where the final selection will be based on quoted energy tariffs, proposed project timelines, and the lease rent offered for the site. Failure to meet specified timelines will result in automatic cancellation of the allotment.

For solar projects on privately owned land, developers must ensure that the site meets all regulatory requirements and that agreements have been made with landowners. They must also assess the feasibility of obtaining clearances. Projects proposed on land bank sites pre-identified by District Level Committees may have already secured basic clearances, simplifying the process.

The Kerala State Electricity Regulatory Commission (KSERC) will determine the tariffs for projects with KSEBL purchasing power. If KSEBL declines a power purchase agreement (PPA), the developer must arrange bilateral or third-party sale agreements and obtain relevant permissions through the single-window portal.

Power Transmission and Grid Interface

Developers must construct and maintain evacuation lines and transmission infrastructure up to the grid connection point at their own cost and adhere to the transmission or distribution utility guidelines. KSEBL can provide grid connectivity at the nearest feasible point.

Additionally, developers must install and maintain all metering equipment. If KSEBL refuses a PPA, developers can use surplus transmission capacity to wheel power to a captive consumer or third party, subject to the wheeling charges payment and levies as determined by KSERC. Transmission and distribution losses will be based on KSERC rates.

Developers are encouraged to incorporate energy storage systems with up to 50% of the project’s total generation capacity.

KSERC estimated that an investment of ₹522.38 billion (~$6.01 billion) would be required by 2030 to upgrade energy infrastructure and integrate renewable energy sources effectively in the state.

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