Jharkhand Notifies Draft Solar Policy 2015

The Government of Jharkhand has recently notified draft for new solar policy. The new policy will be known as the Jharkhand State Solar Power Policy 2015. The new Policy will be in operation for five (5) years from the date of issuance and will remain operational till modified or superseded by a new policy.
Objectives of the Policy:
The Policy targets to achieve 2500 MW of solar energy by 2020 and with an objective of promoting local manufacturing facilities and generating employment in the state.
Minimum Target: The minimum size of the solar PV power plant at single location shall be 1 MW.  The targets of the policy are elaborated below –

Implementation Plan
1)      Utility Scale Projects:

• Development of Solar Power Plants for Sale of Electricity to the Distribution Licensee.
• Generations of Solar Power for Sale of Electricity to Third party or through Open Access.
• Development of Solar Parks.
• Development of Solar Power Plants under REC Mechanism.
• Development of Solar Power Plants on Canals.
• Development of Solar Power Plants under the schemes announced by Government of India.

 2)      Rooftop Solar Photovoltaic Power Plants Connected with Electricity System:

•  Development of Solar Power plants for sale of electricity to the distribution Licensee.
• Generation and sale of electricity to a person/entity other than distribution licensee via Open Access mode.
• Generation, Captive Consumption and injection of surplus electricity under Net Energy Metering Mechanism.

3)      Decentralized & Off-Grid Solar Applications:  The Government will also promote decentralized and off grid solar applications, to meet the requirements of electricity and thermal energy, as per the guidelines issued by Ministry of New and Renewable Energy, Govt. of India.
Incentives Offered:

• Exemption from the payment of Electricity Duty.
• Deemed Industry Status will provided.
• Pollution Clearance.
• Open Access will be allowed.
• Exemption from payment of Conversion Charges.
• Exemption from the payment of VAT & Entry Tax.
• Exemption from wheeling Charges.
• Exemption from Distribution Losses.
• Exemption from payment of Cross Subsidy Surcharge.
• Banking for 100% of energy during all 12 months of the year.
• Third Party Sale within or outside the State will be allowed.
• Must run status for Solar Power Projects.
• Renewable Energy Certificate (REC).
• Deemed Public Private Partnership (PPP) Status..
• Non Agriculture Status for the land where Solar Power Projects will be accorded.

Solar Purchase Obligation (SPO):
1) Solar Procurement Obligation (SPO) will be mandatory for commercial consumers with LT Industrial connection with more than 50 kVa connected load and for all HT & EHT consumers. All such consumers have to procure 4% of their power from solar source.
2) All new domestic buildings having floor area equal to or greater than 3000 sft will have at least 100 kw Solar PV system. In case of Housing Societies, 5% of energy usage should be from solar for common amenities.
3) In the potential categories to be notified like star hotels, hospitals, residential complexes with more than 50 kVA total connected load the use of solar water heating system shall be made mandatory.
Apart from all this the government also intends to promote solar manufacturing and R&D facilities in the state. Incentives to such manufacturing facilities will be provided separately. JREDA will act as Nodal Agency for all projects.
Overall the policy offers good number of incentives to the project developer, in terms of tax relaxations, must run status, exemptions from various charges etc. The policy proposes to increases the solar purchase obligation (SPO) to 4% for the consumers, which is 1% for now (as per JERC orders 2012), it also puts obligation for consumers to use the decentralized solar applications, which appears to be a good approach.
It looks promising and offers a fresh start for the state, which hasn’t seen much of the capacity addition in the solar energy sector. The state is having a total potential of more than 18 GW of solar energy. Out of this potential a target of 2.5GW can be achievable, given that the state government works positively towards it.
The Draft Policy can be accessed here.