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Uttar Pradesh Solar Rooftop Policy 2014

Hon’ble Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA), has issued the Solar Rooftop Policy, aimed at Government, Public and Private institutions. The policy aims to promote solar energy generation for self consumption, while excess energy will be injected into the distribution network.

The State has vast potential for deployment of plants utilizing Solar Energy. The State receives daily average solar radiation in the range 5.0 kWh/sqm –5.5 kWh/sqm, in most of its part, offering opportunity for deployment of suitable solar energy facilities.

The main objectives of the policy are:

  1. Encouraging solar energy generation in the state and contributing towards sustainable development.
  2. Attracting investments in manufacturing, research & development in solar energy sector.
  3. Optimally utilising available solar resources & enabling stakeholders to reducing greenhouse gas emissions.
  4. Attracting private sector participation in solar energy sector.

The policy is summarized in the table below:

Overall the policy is good initiative by the state to promote Rooftop solar, but the paltry target of 20 MW by March 2017 does not clearly justify how the government wants private investments in manufacturing and projects, and neither its objective of promoting Sustainable Development to a larger extent. It will not meet its Solar RPO target of 1.5%, 1.75% and 2.00% for 2014-15, 2015-16 and 2016-17 respectively, with the solar roof-top capacity addition target of 20 MW. Buying solar power from states like Rajasthan, would suffice its Solar RPO.

There is no clarity on subsidies, and the interconnectivity with grid rests in the hands of Discoms who are required to submit procedures for the same. The procedures are to be approved by the commission. If Discoms and UPERC cause any delay on their account, it may become a huge deterrent for early projects implementation.

The winter months, starting from November and extending up to March, with foggy weather conditions, will not help the cause of Roof-top solar, but since the long summers are generally characterized by high Solar Irradiation and acute power shortages, Solar Rooftop might provide the right answer for small commercial and residential consumers.

However the government has assured target revision from time to time, and has set attractive tariffs for Solar Rooftop with 5 year commercial visibility.

The Policy can be found here.

Our recent blog on UP RE tariffs can be read here.

Contributed by Dheeraj Babariya.