In recent notifications published by the tax department of Rajasthan regarding a series of amendments and additions in the previous order on the electricity duty levied on captive power plant generators.
According to the changes, the existing electricity duty on the consumption of self-generated energy for any purpose generated from captive power plants other than DG sets is increased from Rs. 0.40/Unit to Rs. 1.00/Unit.
This electricity duty will, however, be exempted for:
(i) solar power plants set up for his own use;*
(ii) solar power plant set up under the Rajasthan Electricity Regulatory Commission
(Connectivity and Net-Metering for Rooftop and Small Solar Grid interactive Systems) Regulations, 2015. *
* The notification to be in force till 31.03.2020
The Electricity Duty is usually applied in as a substitute for cross-subsidy charges and it depends on an individual state as to how much is the electricity duty is applied to each category of consumers. Having said that, ED charges depends on the units of electricity consumed. So if the unit consumption is high, the ED charges will be directly proportional.
Also as seen in the second part of the change in the order, where the ED charges are exempted from solar CPP plants used for self-generation, it can be assumed that the state wishes to improve the rooftop solar capacity and encourage more self-consumption solar CPPs.