Gujarat government announces Solar Power Policy, 2021

The new solar policy aims at reducing the power costs of the industrial units by almost 50% while also removing any capacity ceiling for setting up a solar project in the state.

Created On: Dec 30, 2020 11:50 ISTModified On: Dec 30, 2020 11:50 IST
New Solar Policy of Gujarat

The Chief Minister of Gujarat, Vijay Rupani on December 29, 2020, announced the Solar Power Policy, 2021 for the next five years. The policy aims at reducing the power costs of the industrial units by almost 50% while also removing any capacity ceiling for setting up a solar project in the state.

The policy by the government also allows the consumers to give their premises or roofs on lease to a third party for the generation as well as consumption of power on the same premises. The announcement by CM was made in Gandhinagar in the presence of Saurabh Patel, State Energy Minister, and Sunaina Tomar, Principal Secretary (Energy & Petrochemicals).

Bringing down the power costs of industries in state:

The Chief Minister of the state while informing about the new policy stated that as a result of this new Solar Power Policy, the increase in production and consumption of solar energy in Gujarat will bring down the production cost for the industries. It will also help the ‘Made in Gujarat’ brand to increase its presence in the global market.

The current power cost of the industries in Gujarat is Rs. 8 per unit which is likely to get halved because of the latest policy. It will also help them in competing in the global market.

Removal of the capacity ceiling for setting up solar plant:

The new solar policy, apart from lifting the cap on the solar plant’s size and also allowing the consumers to give their premises or roofs on a lease, will also allow the group of consumers to set up the solar projects for the self-consumption as a collective ownership project. It will allow them to consume the generated energy as per the ratio of their ownership.

The major breakthrough of the policy is, it has done away with the ceiling on the installed capacity of the solar plant. Previously, the cap on the solar project as allowed by the government was 50% of the contracted demand or sanctioned load.

Government eligible to purchase the surplus solar energy:

According to the new policy, the government will be able to purchase the surplus energy from the micro, small and medium enterprises, and residential consumers after setting off against their consumption.

The consumers will be allowed to sell their surplus solar power at a tariff of Rs. 2.25 per unit.

As per the Gujarat state government, DISCOMS will be able to purchase power from small scale solar projects at 20 paise per unit tariff for the projects that are up to 4 MW.

The solar power association also welcomes the step of removing the capacity restrictions for all the categories of industrial, commercial, and residential consumers.

Gujarat’s solar policy:

The Gujarat state government, in 2015, announced the solar policy for increasing the growth and supply of affordable power of the sector. PM Modi had also earlier laid the foundation of the country’s largest hybrid renewable energy park with a capacity of 30 Gigawatt in Kutch, Gujarat.

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