UP Solar Energy Policy 2022 – Salient Provisions

Uttar Pradesh (UP) is one of the largest states in India with a growing population and economy. To meet the growing energy demands of the state, the government has released a comprehensive solar energy policy for 2022. The policy is designed to promote solar energy and reduce the dependency on conventional sources of energy. The policy includes various provisions that aim to increase the adoption of solar energy and promote investment in this sector. In this article, we will discuss the salient provisions of the UP Solar Energy Policy 2022.

1. Grid-connected Rooftop Solar (Residential) The state government has proposed to implement the ‘Saurya Uttar Pradesh Yojna’ to achieve the target of 4.5 GW during the policy period. Under this scheme, the state government will provide a subsidy of INR 15,000 per kW to a maximum limit of subsidy INR 30,000 per consumer for grid-connected rooftop solar. This subsidy is in addition to the central financial assistance available from the central government.
2. Solar City The policy aims to develop solar cities in the state where a minimum of 10% reduction in projected total demand of conventional energy at the end of five years is achieved from the installation of renewable energy systems and through energy efficiency measures. Ayodhya city will be developed as a model solar city, and after assessing its success, 16 municipal corporations of the state and Noida city will be developed as solar cities. The policy aims to cover 13,50,000 residential houses with solar rooftops in solar city during the operative period of the policy. The 16 municipal corporations and Noida city will be provided with funds to the tune of INR 50 per person as per the census of the year 2011 of the municipal corporation area for solar city development.
3. PM KUSUM The policy also includes the PM KUSUM scheme, which has two components. Under component C1, the state government will give a 70% subsidy to Scheduled Tribe, Vantangia, and Musahar caste farmers. This subsidy will be in addition to the subsidy available from the central government. The state government will give an additional 60% subsidy to other farmers. Under component C2, the state government will provide maximum Viability Gap Funding (VGF) of INR 50 lakh per MW in addition to the subsidy being provided by the central government.
4. Utility-scale Projects with 5 MW or More Than 5 MW Capacity The state government will bear the cost of construction of transmission lines for projects to be set up in Bundelkhand and Purvanchal region.

5. Solar Power Projects Set Up for Sale of Solar Power to Third Party or Captive Use The policy includes the exemption of 50% on wheeling charges/transmission charges on intra-state sale of power to third party or in case of captive use. The cross-subsidy surcharge and wheeling charges/transmission charges will be exempted 100% for Intrastate Transmission system on the purchase of solar power.
6. Solar Park The state government will provide revenue land for setting up a solar park on lease for 30 years at INR 15000 per acre per year to promote investment in this sector. The sale of 100% power to third party under open access is allowed for plant capacity above 1 MW. To provide facilitation for evacuation of power from solar projects of 4,000 MW capacity, green energy corridor will be set up