Gujarat’s Solar policy 2021 ; Incentivizes Captive and Rooftop Solar Projects

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Unveiling the new solar power policy, Chief Minister Vijay Rupani said Gujarat has taken various proactive measure and made rapid strides to take the development of Renewable Energy in the state to a new height. This has resulted into overall growth of renewable energy sector and made Gujarat a leader in the country.

In order to increase the growth of solar energy sector in the state and to provide affordable electricity to the people, State Government had implemented Solar Policy in year 2015. Considering the overwhelming response to this policy, the Government of Gujarat is now going to implement the new “Gujarat Solar Power Policy 2021” to ensure clean, environmentally friendly and sustainable energy in the state.

Spelling out more details about the policy, chief minister said:

  •   MSMEs will be able to reduce their cost of production due to solar energy usage and also large scale industries too will be able to compete in the global market
  •   The new solar power policy will be operative for five year i.e. up to 31.12.2025 and benefits of the solar projects set up under this policy can be availed for a project life of 25 years. Under this policy, Residential Consumers, Industrial & Commercial consumers for captive usage, Project by third party to sell power to industrial & commercial consumers, Sale of Power to DISCOMs, will be able to set up their own solar projects.

Providing details about incentives of the newly unveiled policy, chief minister said:

  •   Any person / developer / consumer can set up solar projects without any capacity ceiling while the existing ceiling of 50% sanctioned load / contracted demand has been removed.
  •   Consumers can set up solar projects on their roof / premises or can give their roof / premises on lease to third party for generation and consumption of power in same premises.
  •  Moreover, a group of consumers can set up solar projects for self consumption as collective ownership project and can consume the generated energy in the ratio of their ownership.
  •   Also the provision for security deposit to be submitted by developer to DISCOMs has been reduced from Rs 25 lakh / MW to Rs 5 Lakh / MW.

Energy Minister, Saurabh Patel said that this new policy which is being implemented by Gujarat Government will boost the development of pollution-free renewable energy and help accelerate the sector. He added that this policy will take Gujarat forward in becoming energy hub. If we look at country’s history, Gujarat has provided an excellent opportunity to connect people in the field of energy. This policy will enable anyone be it residential consumers, farmers, commercial consumers, small and medium industrial houses, religious & educational institutes, that wants to generate electricity and sell it after own their own consumption.    

Giving details about the work done by Gujarat in the field of green energy, Chief Minister said that Gujarat has already achieved 11,000 MW of production capacity and now has set a target of producing 30,000 MW of green energy by year 2022, which will largely include wind and solar energy. Moreover, Gujarat has successfully implemented solar rooftop scheme and is currently generating around 800 MW of solar energy from it. Also Gujarat has been ranked first in the country for largest solar rooftop installations.   

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