The Uttar Pradesh Solar Power Policy 2017

Source: IEA/IRENA Renewables Policies Database
Last updated: 11 April 2018

Uttar Pradesh Solar Policy was drafted in 2017 and adopted early 2018. The key objectives of the policy are:

  • to increase renewable installed capacity in the state to 10.7 GW by 2020 out of which 4.3 GW will come from rooftop solar (through Solar Rooftop Policy) and 6.4 GW will come from utility-scale PV projects.
  • Achieve target of 8% Solar Renewable Purchase Obligation (Solar RPO) by 2022.
  • Support in providing environment-friendly and affordable Power for All.
  • Encourage participation of Private Sector and provide investment opportunities to set up solar power projects in the state

In order to achieve the above-mentioned target, Uttar Pradesh will support both on-grid and off-grid PV applications and projects. The policy in detail provides information on support mechanisms for deployment of all PV project categories.

The policy introduces the net-metering system with subsequent financial support:

  • To promote large-scale installation of grid-connected rooftop PV systems under the Net-Metering arrangement in private residential sectors in addition to central financial assistance available the State Government will provide subsidy of Rs 15000/KW to a maximum limit of subsidy Rs 30000/ per consumer on the first come first basis for the first 100 MW applications submitted online to UPNEDA.

The policy lowers administrative burden for smaller projects:

  • Grid-connected solar plants of capacity up to 10 kW, will be exempted from the inspection by the State Electrical Inspector.
  • The nodal agency will implement online single window clearance system for all Solar Power Projects
  • The land ceiling of 5.058 hectares has been removed exclusively for setting up of solar power plants. Plus 100% exemption from stamp duty. Also, complete exemption from electricity duty for at least next 10 years.

Off-grid PV applications like solar street lights, solar water pumps and mini-grids will be supported by the local government. The mini-grids will be regulated by the Uttar Pradesh Mini-Grid Policy 2016.

The Uttar Pradesh state will facilitate the development of large-scale projects with PPA agreements. However, to ensure the timely construction of agreed projects financial penalties will be placed on developers in case of commissioning delays. PPAs will be automatically canceled if the projects will not be commissioned within 3 years from the date of PPA signing.

Provisions on generated power selling:

  • Solar PV plants owners are permitted to sell power to an individual or institutional consumers within and outside the state.
  • The private solar power generator will have the freedom to sell the power anywhere in the country and will get 100% waiver in transmission charges.

The policy will remain in force for a period of 5 years from the moment of adoption. The Solar Power Projects (SPPs) that are taken up during the operative period shall continue to be eligible for the incentives declared under this policy, for the period as envisaged in this policy wherever the period is not mentioned for the entire useful life of the project.

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