Gujarat announces solar power policy, 2021
With the aim of becoming a primary contributor to the national target of 100 GW solar capacity by 2022, the State Government of Gujarat introduced the “Gujarat Solar Power Policy 2021” on 29th December, 2020. This policy will remain in operation upto 31st December, 2025.
The policy categories the benefits based on the type of Project. Following table comprises the summary of benefits given to various kinds of projects:
| Project for Residential Consumers | Project Under Captive Use | Project Under Third Party Sale | Projects under REC mechanism | Solar projects for RPO compliance | |
| Capacity Restriction | No restriction on installed Capacity | No restriction on installed Capacity | No restriction on installed Capacity | Up to sanctioned load/Contract demand | No restriction on installed Capacity |
| Capacity Subsidy | As per GOG scheme announced from time to time | – | – | – | – |
| Third Party Sale | Allowed | – | – | – | – |
|
Energy Accounting
|
As per billing cycle
|
For HV/EHV consumers: | For HV/EHV consumers: |
15-minute time block basis
|
15-minute time block basis
|
| Energy set off, Between 07.00 hours to 18.00 hours of same day | Energy set off, Between 07.00 hours to 18.00 hours of same day | ||||
| For LT demand based consumers: | For LT demand based consumers: | ||||
| Energy set off, Between 07.00 hours to 18.00 hours in the billing cycle | Energy set off, Between 07.00 hours to 18.00 hours in the billing cycle | ||||
| For LT other than demand based consumers: | For LT other than demand based consumers: | ||||
| Energy set off shall be on billing cycle basis | Energy set off shall be on billing cycle basis | ||||
|
Surplus Injection Compensation
|
For Self consumption: | For MSME: |
75% of simple average of tariff discovered in GUVNL bid
|
65% of simple average of tariff discovered in GUVNL bid
|
75% of simple average of tariff discovered in GUVNL bid
|
| Rs.2.25/Unit for first 5 years, thereafter 75% of lowest tariff discovered in GUVNL bid | Rs.2.25/Unit for first 5 years, thereafter 75% of simple average of tariff discovered in GUVNL bid | ||||
| For third party sale | For others: | ||||
| 75% of lowest tariff discovered in GUVNL bid | 75% of simple average of tariff discovered in GUVNL bid | ||||
|
Banking Charge
|
None
|
MSME units and other than demand based consumers: | MSME units and other than demand based consumers: |
Exempted
|
Exempted
|
| Rs.1.10/unit on energy consumed | Rs.1.10/unit on energy consumed | ||||
| For demand based consumers | For demand based consumers | ||||
| Rs.1.50/unit on energy consumed | Rs.1.50/unit on energy consumed | ||||
| For Government buildings: | For Government buildings: | ||||
| Exempted | Exempted | ||||
| Transmission & Wheeling Charge | None | As decided by GERC from time to time | As decided by GERC from time to time | As decided by GERC from time to time | As decided by GERC from time to time |
| Cross subsidy & Additional Surcharge | NA for Self consumption, Applicable for third party sale | Exempted | As decided by GERC from time to time | As decided by GERC from time to time | NA for Self consumption, For third party as decided by GERC from time to time |
| Electricity Duty | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 | As per provision of Gujarat Electricity Duty Act, 1958 |
As per the policy, Gujarat energy development agency(GEDA) will be the state government nodal agency for the following activities:
- Registration of projects
- Accreditation and recommendation of solar projects for registering with central agency under REC mechanism
- Certifying the commissioning of solar projects
In order to encourage small scale solar projects, Policy suggests that the power Distribution Companies will now purchase power from these small-scale solar projects (up to 4 MW) at 20 paise / unit tariff higher than tariff discovered through competitive bidding while DISCOMs will purchase solar power from projects above 4 MW capacity through competitive bidding process. Apart from that, Security deposit to be furnished by developer to DISCOMs for PPA has been reduced from Rs 25 lakh/MW to Rs 5 lakh/MW.
It is important to note that Gujarat has already installed over 3200 MW of Solar PV until 2020 and the recent policy has been published with the aim of rapidly scaling up the state’s solar energy capacity.