Finally good news for all the readers and investors willing to set up their solar power plant in Gujarat is that the state of Gujarat after much anticipation of the solar policy has finally released its new solar policy henceforth to be known as – “Gujarat Solar Power Policy 2021” ! which will be operative for 5 years i.e. up to 31.12.2025. Benefits of the solar projects set up under this policy can be availed for a project life of 25 years !
To promote all-round development of renewable energy sector, Gujarat has initiated various efforts and in this new policy the Gujarat Government has announced several benefits that give major boost in promoting brighter future for the development of greener and cleaner renewable energy in the State. Moreover, MSME and large-scale industries will get encouraged to use solar energy and thus be able to bring down their production cost.
Overview & Highlights of new “Gujarat Solar Power Policy 2021” :
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.
Any person / developer / consumer can set up solar projects as per his requirement without any capacity ceiling
Existing ceiling of 50% of sanctioned load / contracted demand for setting up solar project is 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
A group of consumers can set up solar projects for self consumption as collective ownership project and consume the generated solar energy in the ratio of ownership
Security Deposit to be furnished by developer to DISCOMs for PPA has been reduced from Rs 25 lakh per MW to Rs 5 Lakh per MW
Gujarat is in a big way encouraging consumers, farmers, co-operative societies, households and small developers to set up solar projects and contribute towards Government’s initiative of development of Clean & Green energy through various policy initiatives like SURYA Gujarat Scheme, PM-KUSUM Scheme and Small Scale Distributed Solar Projects Policy 2019.
And so Gujarat Solar Policy 2021 will further strengthen these efforts and offer a boost. In order to encourage small scale solar projects, power Distribution Companies will now purchase power from these small-scale solar projects (up to 4 MW) at 20 paise / unit tariff higher than tariff discovered through competitive bidding while DISCOMs will purchase solar power from projects above 4 MW capacity through competitive bidding process.
The state will purchase surplus energy after set off against their consumption.
For Residential Consumers (Surya Gujarat Yojana) and MSMEs (manufacturing) for captive usage, DISCOMs will purchase surplus energy after set off against their consumption at Rs 2.25 per unit for initial 5 years and thereafter at 75% of latest tariff discovered and contracted by GUVNL through competitive bidding process for non-park based solar projects in preceding 6 months which shall remain fixed for remaining life of the project.
For all other consumers, it will be purchased at 75% of latest tariff discovered and contracted by GUVNL through competitive bidding process for non-park based solar projects in preceding 6 months which shall remain fixed for the project life of 25 years.
Banking :
As far as banking charges are concerned
for HT consumers and LT (demand-based) consumers, it will be Rs 1.50 per unit for their solar energy consumption while..
For all other consumers and MSME units it will Rs. 1.10 per unit.
No banking charges shall be applicable to Residential Consumers and Govt. Buildings.
Cross Subsidy Surcharge (CSS) and Additional Surcharge (AS) will not be applicable in case of self-consumption (captive).
CSS & AS as applicable to normal open access consumers will remain applicable in case of projects for third party sale.
Gujarat has provided an excellent opportunity to connect people in the field of Clean & Renewable energy. Needless to say that Gujarat has been ranked first in the country for largest solar rooftop installations !
Friends, very recently our Honorable Prime Minister laid the foundation stone for the World’s largest renewable energy park near Khavda in Kutch district which will be spread over 60,000 hectares of area. This hybrid renewable energy park will give a new direction to the state as far as development of solar energy is concerned.
Once this 30 GW Renewable Energy Park start functioning, it will generate around 60,000 million units of clean and green energy and this will result into reduction of 60 million tonnes of carbon.
This will also result into saving of 40 million tonnes of coal and offer employment opportunities to around 25,000 people annually.
Gujarat Solar Policy 2021 clearly intends to help MSME bring down production cost and enable industries compete in the global market
One thing is for sure that the solar boom in India started from Gujarat under its Gujarat solar policy for Phase I and Phase II and now with the announcement of the new solar policy in Gujarat, the state is surely gonna create a new wave in the solar arena of India with upcoming deployment of new solar power projects & plants in Gujarat.
And In case you are thinking of going green and powering your premises via solar or are thinking of setting up solar power plants across India, as a solar consultant in India we can always help you 
Meanwhile, please #StaySafe #StayHome & #StayHealthy
And till we meet next time with more updates… !
…Enjoy the Winters !
Cheers !
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Solar Project Consultant – India
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