Solar Policies of States in India and its Comparison

Nilesh Dayalapwar Symbiosis (SIIB)

Solar & Electrification Policies Overview

1974-79 Minimum Needs Program: 60% of villages to be electrified under REC.1988-89 Kutir Jyoti Scheme: Single point light connections to households Below Poverty Line.

2006- REC Policy, 2007 – Semiconductor Policy.

2005 Rajiv Gandhi Vidyuktikaran Yogana: Major initiative towards Universal electrification 90% Central Govt 10% REC to State Govt.

2009 Nov Jawaharlal Nehru National Solar Mission(JNNSM): 20000 MW by 2020.

2009 Dec CERC: Announces tariff for Renewable power generation for a period of 25 years.

2010 June: JNNSM Launch target to be achieved by end of13th Five year plan. Guidelines for Off grid and decentralised Solar Applications.

2010 Sept: Tariffs for Solar projects where PPA’s after 31st Mar’11 to rs 15.39 for PV and rs 15.04 for Solar thermal Projects.

National Solar Mission• Major initiative of Central Government to promote

Ecologically sustainable growth also keeping in mind the country Energy Security Challenge.

• Its planned for a 50% distribution of Photovoltaic and the remaining for Concentrated Solar Thermal Power.

• JNNSM

• Evaluated after each phase on the basis of local and global Capacity Targets Emerging costs Technology

PHASE 12012 – 13

1200MW

PHASE 22013 – 179000MW

PHASE 32017 – 2220000MW

JNNSM

Objectives of JNNSMThe major objective is to create an enabling environment for solar technology penetration in the country at a Centralized and De-Centralized level.Comprehensive framework for development of solar power in India.Covers both solar power generation as well as manufacturing.Incorporates specific fiscal / monetary incentives.Installed solar power generation capacity of 20 GW by 2020; 100 GW by 2030 and 200 GW by 2050.To achieve grid parity by 2020.To achieve parity with coal-based thermal power generation by 2030.4-5 GW of installed solar manufacturing capacity by 2017.20 mn solar lighting systems for rural areas by 2022.2000MW by creating off grid applications.

STATES POLICY LAUNCH

INSTALLED CAPACITY

(MW)

PROJECTED CAPACITY

(MW)

SOLAR INSOLATION

KWh/m2

GUJARAT 2009 856.81 117 6-7

RAJASTHAN 2011 608.5 12000 YR_2021

6.5-7

MAHARSTRA 2011 28.8 500 YR_2016 5.5 -6

TAMILNADU 2012 21 3000 YR_2015 5 - 5.5

KARNATAKA 2011 24 200 YR_2016 5.2 – 5.6

UTTARPRADESH 2013 17 500 YR_2017 4.4 -5

BIHAR 2011 NA NA 4.4 -5

UTTARAKHAND 2012 5 0 4.4 -5

PUNJAB 2013 12 NA 4 -5

MADHYA PRADESH 2012 45 280 YR_2017 5- 6

KERALA 2013 0.025 0 5- 5.5

ANNDHRA PRADESH

2013 63 1000 – YR_ 2017

5.7

STATES Tariff Structures (`/kwh)

GUJARAT Levelized tariff for 25 years 9.28 `/kwh, 8.63`/kwh and 8.03`/kwh (12-13,13-14,14-15)

RAJASTHAN 9.63 `/kwh, 8.43 `/kwhFormer without A.D, latter with A.D (Accelerated Depreciation ) 31-3-2014

MAHARSTRA 14.95 `/kwhfor Y’2010- Y’2011

TAMILNADU 5.78 `/kwh

KARNATAKA 14.50 `/kwh, before 31-3-2013

UTTARPRADESH NA

BIHAR

UTTARAKHAND 8.69 `/kwh

PUNJAB 8.75`/kwh and 7.87`/kwh – Before and after commissioned

MADHYA PRADESH 10.44 `/kwh

KERALA 17.91 `/kwh without A.D and 14.91`/kwh with A.D

ANDHRA PRADESH 6.49`/kwh

STATES FORECASTING AND SCHEDULING

GUJARAT SPG based generation shall not be covered under scheduling procedure for Intra-state ABT

RAJASTHAN The solar energy generated for sale will not be covered under scheduling procedure for Intra-state ABT

MAHARSTRA NA

TAMILNADU NA

KARNATAKA NA

UTTARPRADESH NA

BIHAR NA

UTTARAKHAND NA

PUNJAB NA

MADHYA PRADESH NA

KERALA NA

ANDHRA PRADESH NA

STATES ELECTRICITY TAX

GUJARAT Exempted from payment of electricity duty for sale through all modes. Exemption from demand cut to the extent of 50% of installed

capacity .

RAJASTHAN The energy consumed by the Power producers for own use will be exempted from payment of the electricity duty.

MAHARSTRA NA

TAMILNADU Exemption from electricity tax to the extent of 100% of electricity generated from solar power used for self consumption/sale to utility

will be allowed for 5 years.

KARNATAKA NA

UTTARPRADESH NA

BIHAR NA

CHHATISGARH Incentives will be in force for a period of 7 years from the date of implementation of the project.

PUNJAB NA

MADHYA PRADESH Policy provides 10-year (from COD) exemption in electricity duty (including captive units),

KERALA NA

ANDHRA PRADESH NA

STATES WHEELING CHARGES

GUJARAT As determined by GERC from time to time. RAJASTHAN The energy consumed by the Power producers for own use will be

exempted from payment of the electricity duty. MAHARSTRA NATAMILNADU The wheeling and banking charges for wheeling of power generated

from the Solar Power Projects, to the desired locations for captive use/third party sale within the State.

KARNATAKA In case of captive power plants and projects for sale of power to third party other than ESCOMs, wheeling and open access charges

determined by KERC.UTTARPRADESH NA

BIHAR NACHATTISGARH Shall be applicable based on the CSERC regulations.

PUNJAB NAMADHYA PRADESH The policy provides a grant of 4% by the state under wheeling

charges to all solar power projects. KERALA NA

ANNDHRA PRADESH Producer will bear the wheeling and transmission losses as per actual.

ROOFTOP SOLAR POLICIES

WHY ROOFTOP SOLAR PV ?

Benefits of RFPV: Lower T&D losses; low gestation time; No additional land requirement; local employment; Improvement in tail end voltages and reduction in system congestion.

• India has very high T&D with around 25% (and R-APDRP is not yielding the results)• India has vast diesel back-up capacities for power outages and captive use.• Solar energy is already cost competetive withCommercial consumers of power in certain states ofIndia.

Distributed PV power generation makes sense in India

BENEFITS TO CONSUMERS

BENEFITS TO NATION

Local, available power(higher supply

security)

Reduced diesel subsidyburden

Hedge against risingpower prices

Increased energyindependence

Reduced LCOE(in some places)

Pressure offdistribution grids

Green Power (Marketing Value)

Reduced air pollutionand CO2 emissions

INDIAN EXPERIENCE AND INITIATIVESRFTV POTENTIAL – 20 GW TO 100 GW;

JNNSM: FIT AND NET METERINGState Policy Highlights

W. Bengal Net metering for 2‐100kW, 16MW rooftop and small installations till 2017.

Gujarat FIT/sale to utility model, 5MW rooftop in Gandhinagar, 5 more cities to follow (Bhavnagar, Mehsana, Rajkot, Surat, Vadodara).

Kerala Off‐grid rooftop scheme (target 10,000 rooftops ~10 MW) with state capital subsidy. 1 kW panel + inverter+ 7200 Wh Battery bank. Consumers can choose from 14 empanelled companies

Karnataka Net‐Metering, 250 MW till 2014 as mentioned in policy. First program in 5 cities. (Bangalore, Mysore, Mangalore, Hubli and Gulbarga) projects of two sizes – 0.5 kW (1297 nos) and 1 kW 646 nos) totalling to 1.3 MW.

SECI Total allocation 10 MW – Delhi, Bhubaneswar (1 MW each), Gurgaon, Chhattisgarh, Bangalore, Chennai (2 MW each). System size – 100 ‐ 500 kWp, each bidder can bid between 250 kW and 2 MW capacity. 30% capital subsidy

T. Nadu Generation Based Incentive model, 50 MW till 2015, details unclear.

Norway

Canada

UAE

USA

Australia

Japan

France

Germany

Russia

S. Africa

World Avg

China

Brazil

India

Pakistan

Nigeria

0 5,000 10,000 15,000 20,000 25,000 30,000

24,867

17,061

16,891

13,654

11,217

8,071

7,931

7,149

6,435

4,759

2,875

2,631

2,232

778

436

126

Kwh/annum

India lacks significantly in Per Capita Consumption

7.7%7%

3%

10.5%

5%

2%

5.80%

4.90%6.70% 5.50%

9.00%

0.50%

3.30%

0.0%

5.0%

10.0%

15.0%Prime Lending Rates (2011) (%)

13% 13% 11%9%

7%

9%

0

10

20

30

0%

5%

10%

15%

IndianCommercial

banks

IndianSpecialised

IFCs

NCDs Multi-lateralagencies

ECAs ECBs

Interest rate Repayment Years

Many consumer tariffs (in the highest use slab) are very close to solar costs; likely to increase further while solar costs decrease.

Align tariffs of high end usage to reflect solar costs to incentivize shift to rooftop PV, else support for utility finances.

Need for facilitating enabling eco‐system, instead of subsidising the system cost through capital subsidies and adding to the budgetary demand, policy should focus on removal of procedural hurdles, permitting, and other barriers, in order to facilitate the quick adoption and deployment of RTPV systems.

WAY FORWARD

Proper Canal top solar policy. Proper policy for establishing solar power plants

on Ash Dykes. Forum of Regulators: Recommend a set of

standard guidelines (banking, metering, interconnection, agreements etc).

Ministry of New and Renewable Energy: National Net Metering policy and study to gauge solar RTPV potential in India.

Central Electricity Authority: Grid interconnection standards (finalised, to be notified by MoP).

Interest Subsidy / VGF for Solar Farm; Rs 15 L/ year/MW (for 5-years)

Higher number of RECs for Older Plants

World Class R&D Centre - High efficiency Solar cells; Reduction in BOS & Tracking system costs

Capital Subsidy / Incentives for domestic PV Mfg projects – to offset interest & power costs

Domestic Content & ADD support for 2-3 years

Rs.5 / unit

It is therefore clear that the gaps in the prevailing policy are few but quite critical for effectively unleashing the solar potential in India.

The solutions are widely recognized and need to be prioritized so as not to lose the momentum created by the JNNSM and the state initiatives, and ensure that India emerges as the global destination for investment in solar energy.