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					</table>The <a href="https://www.apindustries.gov.in/apindus/userinterface/singlewindowservicesapplication/public/Energy.aspx" target="_blank" rel="noopener">Andhra Pradesh Energy Department</a> has issued operational guidelines on resource allocation, land allotment, grid connectivity, open access, banking facility, project migration, fees, and incentives <a href="https://www.mercomindia.com/andhra-pradesh-clean-energy-policy-targets" target="_blank" rel="noopener">under</a> the Integrated Clean Energy Policy, 2024.
Resource Allocation
The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) will develop a unified portal for granting approvals, allocating resources and implementing clean energy projects and renewable manufacturing plants.
Applications and approvals for clean energy projects and renewable manufacturing plants must be completed online via the unified portal. Developers must include the necessary documents and application fees along with the application.
Applications are automatically time-stamped upon submission, and only complete applications are processed. Developers are notified about the status of their application through the portal. For projects of up to 40 MW capacity, the State Nodal Agency (SNA) approves within 14 days. However, for projects exceeding 40 MW, NREDCAP will review the applications before forwarding them to the State Investment Promotion Committee (SIPC), the State Investment Promotion Board (SIPB), and the Andhra Pradesh government (GoAP) for final approval.
The allocation of resources is prioritized based on high-value additions, i.e., rupees per acre. If two developers apply for the same resources, the allocation follows a first-come-first-serve basis. If any resources remain after initial allocation, they will be distributed pro-rata to other developers.
Developers can submit a physical application if the unified portal is not functional for over three consecutive days. The application will be considered based on the email time-stamp and treated the same as an online submission.
If a developer requests an enhancement in project capacity, the proposal is referred to the SIPC, the SIPB, and the Andhra Pradesh government for approval.
The allocation of resources based on the project type and capacity is as follows:
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy-.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-77432 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy-.png" alt="Andhra Pradesh Issues Clean Energy Policy" width="719" height="865" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy-.png 719w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy--249x300.png 249w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy--650x782.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy--624x751.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/03/Andhra-Pradesh-Issues-Clean-Energy-Policy--600x722.png 600w" sizes="(max-width: 719px) 100vw, 719px" /></a>
Land Allotment 
Developers of clean energy projects (excluding biofuels and green hydrogen hubs) entering lease agreements for government or revenue land must pay ₹31,000 (~$355) acre per year, with a 5% escalation every two years. This amount is paid entirely to the revenue department.
For private or patta land lease agreements involving NREDCAP, the developer pays ₹31,000 (~$355)/acre, with ₹30,000 (~$344) going to the landowner and ₹1,000 (~$11) to NREDCAP for the first two years. Afterward, the payment proportions remain the same, including the escalations. If there is no NREDCAP involvement, the developer pays the full amount to the landowner, and no payment is made to NREDCAP.
For biofuel projects, the lease amount for government or revenue land is ₹15,000 (~$172)/acre/year, with a 5% escalation every two years, all of which is paid to the revenue department.
The lease amount for government or revenue land for green hydrogen hubs at ports is ₹100,000 (~$1,146)/acre/year, paid to the revenue department.
Lease charges must be paid by the developer starting from the date of possession, lease agreement, or registration, whichever occurs first. If the developer has not taken possession of the entire land, lease charges will be paid only for the land taken into possession.
Grid Connectivity and Power Evacuation 
All clean energy projects must comply with the Central Electricity Authority (Technical Standards for Connectivity to the Grid) Regulation, 2007, and the Andhra Pradesh Electricity Regulatory Commission (APERC) Power Evacuation Regulation 3, 2017. The State Transmission Utility (STU) is designated as the nodal agency responsible for processing and granting grid connectivity. The STU provides quarterly updates on available substations for power evacuation, and these details are published on the NREDCAP website.
Developers may approach the SNA for grid connectivity during a project’s construction phase, where 50% of the land required for setting up a project is under applicant possession.
They must submit within 30 days from the date of receipt of this connectivity permit a bank guarantee of ₹500,000 (~$5,733)/MW for the first 12 months and ₹1 million (~$11,460)/MW thereafter until commissioning.
Developers must also submit quarterly progress reports for solar, wind, hybrid, and battery storage projects to process their grid connectivity applications. If the developer does not take possession of the required land within three months of connectivity approval, the STU may cancel connectivity approval.
Open Access
The policy provides three types of Green Energy Open Access (GEOA), including long-term access for more than five years, medium-term access for between one and five years, and short-term access for up to one year. The processing fee for long-term open access is ₹150,000 (~$1,720), while medium-term and short-term access require fees of ₹100,000 (~$1,146) and ₹50,000 (~$573), respectively.
Developers must comply with metering requirements under the Central Electricity Authority (Installation and Operation of Meters) Regulations, 2006. The Andhra Pradesh SLDC is the nodal agency for short-term GEOA, whereas STU manages medium and long-term GEOA. Additional technical requirements, such as data acquisition systems and compliance with metering regulations, should be included.
Banking Facility
Under the AP ICE Policy, the banking facility allows developers to store unutilized energy within a monthly billing cycle. Banked energy must be consumed within the same billing period, ensuring a structured and efficient energy flow. Energy banking charges, drawal limits, and other operational provisions fall under the jurisdiction of APERC&#8217;s GEOA Regulations 2024. The maximum allowable banking capacity at the grid level is capped at 5% of peak grid demand (700 MW for financial year 2025), with potential increases based on system studies. Energy banked during peak hours can be drawn during peak, off-peak, and normal hours, while off-peak energy can only be used in off-peak hours.
Migration of Projects from Previous Policies
Projects allotted under previous renewable energy policies can migrate to the AP ICE Policy 2024 within six months of the notification. The migration process requires submission of an application to the state nodal agency, which reviews and processes applications within 14 days.
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Andhra Pradesh Issues Integrated Clean Energy Policy Guidelines

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					</table>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has issued the operational guidelines to implement the PM Surya Ghar: Muft Bijli Yojana for the component ‘Incentive to Power Distribution Companies (DISCOMs).
The incentives worth ₹49.5 billion (~$591.69 million) provide resources to DISCOMs for participating in information, education and communication,  and branding activities, creating conducive regulatory and administrative mechanisms to ensure timely approvals (feasibility, commissioning, inspection, grievance redressal, etc.), achieving implementation targets, ensuring timely availability of net meters, saturating rooftop solar on government buildings, utilizing incentives for rooftop solar-specific activities, and incentivizing field-level staff through recognition and rewards.
These measures will be undertaken by State DISCOMs or other agencies for rooftop solar deployment.
Claims under Phase-II Of The Grid Connected Rooftop Solar Program (GCRT Phase II) Component B for incentives up to FY 2022-23 will be guided by the GCRT Phase II guidelines.
Claims under PM Surya Ghar: Muft Bijli Yojana for incentives from FY 2024-25 onwards will follow the current guidelines.
Claims for FY 2023-24 will be calculated using a weighted average of the applicable benchmark costs, weighted by the number of days the benchmark was operational.
Under GCRT Phase II, the national benchmark was ₹36,470 (~$436)/kW until December, then revised to ₹45,000 (~$537)/kW in January.
The benchmark under PM Surya Ghar: Muft Bijli Yojana was set at ₹50,000(~$597)/kW from the program launch on February 13. The baseline date for the calculation is March 31, 2023.
Criteria
Incentives to DISCOMs will be based on the additional grid-connected rooftop solar capacity installed in all sectors beyond the base level per data from the CGRT Phase II program). Incentives are limited to the first additional 18,000 MW of rooftop solar capacity in the country since the start of Phase II.
The incentive is set at 5% of the applicable benchmark cost for capacity achieved above 10%, less than 15% of the installed base capacity, and 10% of the applicable benchmark cost for capacity achieved beyond 15%.
Implementation
Incentives will be calculated based on the incremental rooftop solar capacity installed by DISCOMs in their distribution area from the installed base capacity (as of the end of the previous financial year) within a 12-month timeline (financial year-wise, from April 1, 2024, to March 31, 2025, and so on for the duration of the program).
The incentive pattern is progressive, with higher rates for higher levels of achievement, as detailed below:
<ul>
<li>For installed capacity achieved above 10% and up to 15% over the installed base capacity within a financial year, DISCOMs will receive an incentive of 5% of the applicable cost for the capacity achieved above 10% of the installed base capacity.</li>
<li>For installed capacity achieved beyond 15% of the installed base capacity within one financial year, DISCOMs will receive an incentive of 5% of the applicable cost for the capacity achieved above 10% of the installed base capacity, plus an additional 10% of the applicable cost for the capacity achieved beyond 15% of the installed base capacity.</li>
</ul>
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana-.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-68296 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana-.png" alt="Incentive Mechanism for DISCOMs under PM-Surya Ghar Muft Bijli Yojana" width="736" height="333" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana-.png 736w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana--300x136.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana--650x294.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana--624x282.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/07/Incentive-Mechanism-for-DISCOMs-under-PM-Surya-Ghar-Muft-Bijli-Yojana--600x271.png 600w" sizes="(max-width: 736px) 100vw, 736px" /></a>
Incentives to DISCOMs will be available for the initial 18,000 MW of rooftop solar capacity added in the country after March 31, 2019. If DISCOMs achieve a higher capacity, leading to eligibility for the 10% higher incentive slab, the total incentives will be limited to the financial outlay available under the program, regardless of the total capacity achieved by any particular DISCOM. DISCOMs must upload details of the total rooftop solar capacity added within their jurisdiction on the National Portal to authenticate their claims for the incentive component.
Utilization of Funds
The total incentives to a DISCOM are untied funds, except for the following mandatory provisions:
<ul>
<li>DISCOMs must create dedicated rooftop solar teams at their headquarters, circles, and division levels by hiring contractual manpower within the program or including rooftop solar-related services in the duties of outsourcing companies. These teams will handle vendor registration on the National Portal, ERP system upgrades, integration with national portals and dashboards, providing timely services to rooftop solar consumers, inspecting and monitoring rooftop solar plants, managing an online database of commissioned capacity, consumer awareness and publicity, ensuring net-meter availability, providing grid connectivity, and capacity building for officers and staff.</li>
<li>DISCOMs must allocate 10% of the incentives received (up to ₹10 million (~$119,535)) for a rewards system for DISCOM officials and functionaries. The model rewards system framework in Annex 1 may be modified by the DISCOM as needed. The service charge program component may cover additional expenses if the incentives are insufficient.</li>
<li>At least 50% of the incentives (up to ₹10 million (~$119,535) per division) must be dedicated to the division and sub-divisional level for administrative expenses, outsourcing services for rooftop solar activities, paying contractual/outsourced manpower primarily for rooftop solar activities, capacity building, organizing consumer-vendor-banker melas, IEC activities, grievance redressal, establishing meter testing benches, and improving the consumer experience for rooftop solar installations and related activities. Funds must not be double-accounted with other central programs like RDSS, IPDS, DDUGJY, or PMDP-2015, and an audited report must accompany the Fund Utilization Report.</li>
<li>DISCOMs must submit a fund utilization plan adhering to the above clauses when claiming incentives. Expenses incurred after release must be recorded in the Fund Utilization Report with necessary receipts before submitting claims for the next financial year. Failure to submit the fund utilization plan, report, or adhere to these guidelines will result in claim rejection.</li>
<li>No incentive amount remaining after utilization can be used as part of DISCOM’s balance sheet until all terms and conditions of utilization are met.</li>
<li>Incentives proposed for specific expenditures above will not be included in the Tariff Determination &amp; Tariff Rationalization process of the respective Electricity Regulatory Commission.</li>
</ul>
Release of Funds
DISCOMs must raise claims to the Ministry for fund release under this program component each financial year. Claims under GCRT Phase II will follow GCRT Phase II guidelines, while claims under PM Surya Ghar from 2024-25 onwards will follow current guidelines. The Ministry will process these claims and release funds accordingly.
Fund releases from 2025-26 onwards are subject to the submission of the Fund Utilization Report by the DISCOM, ensuring compliance with these guidelines.
DISCOMs will establish a quarterly ranking system for all divisions under its command and identify the top three performing subdivisions. The officials in charge of the subdivision will be awarded with an honorarium.
In June, MNRE <a href="https://www.mercomindia.com/operational-guidelines-pm-surya-ghar-program/" target="_blank" rel="noopener">issued</a> the operational guidelines to implement the PM Surya Ghar: Muft Bijli Yojana for the component “Central Financial Assistance to residential consumers.”
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MNRE Issues Guidelines for Incentives to DISCOMS Under PM Surya Ghar Program

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