The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has issued the ‘Draft Solar Power Policy-2017’ for Uttar Pradesh. When made official, the policy will remain in operation for a period of five years or until the government issues a new policy.
The draft is open for suggestions and the final Solar Power Policy-2017 will be published after the approval of competent authority, according to a UPNEDA release.
The policy aims to encourage participation of the private sector and provide investment opportunities for solar power projects, provide environment friendly and affordable power for all, and achieve the state target of eight percent solar renewable purchase obligation by 2022.
The Government of Uttar Pradesh has set a target of 10,700 MW for solar power, including 4,300 MW from rooftop solar projects, by FY 2022.
The development of integrated solar parks for utilizing waste lands in the state is also encouraged. The state will help public and private sector entities develop solar parks with a minimum 100 MW capacity.
The policy draft specifies that “minimum project size will be 5 MW at a single location for standalone projects, and they will be awarded through competitive bidding only.”
To promote large-scale installation of grid-connected rooftop systems with net-metering in private residential sectors, the state government will provide a subsidy of Rs.10,000 (~$155)/kW up to a maximum limit of Rs.20,000 (~$310)/kW per consumer on a first come, first serve basis for the first 100 MW applications submitted online to UPNEDA.
To encourage solar power generation, UPNEDA will undertake a single window clearance for all solar power producers. Banking of 100 percent energy in every financial year will be permitted and for 10 years, the electricity duty will not be levied on sales to distribution licensees, captive consumption, and third-party sales for all solar projects set up within Uttar Pradesh.
According to Mercom’s India Solar Project Tracker, Uttar Pradesh has a cumulative installed solar capacity of over 450 MW and a pipeline of nearly 500 MW under various stages of development.