Solar Policy of Bangaru Telangana

Solar Policy of Telangana

Telangana has a vast solar potential with average solar insolation of nearly 5.5 kWh/m2 for more 300 sunshine days. The government of Telangana (GoTS), intends to make use of the positive environment in the solar market and push given by GoI for substantially harnessing the solar potential in the state of Telangana.

This policy of GoTS on solar has provisions which aim at creating an enabling environment for prospective solar power developers to harness substantial quantum of solar power in the best possible manner. This, in turn, is expected to meet the objective of GoTS to provide competitive, reliable power supply to its consumers and also to ensure a sustainable fuel mix in the long run.

OBJECTIVES:

This solar policy has the following specific objectives:
1. Realize and harness the vast solar power potential of the State.
2. Contribute to the long-term energy security of the state and promote a sustainable fuel mix in the generation through the higher contribution of solar energy.
3. To promote solar parks
4. To promote public as well as private investment in solar power generation
5. To promote decentralized and distributed generation
6.To promote grid connected and off-grid solar applications and effective energy conservation measures.
7. To promote all technologies of harnessing solar energy.

4. OPERATIVE PERIOD

This policy shall come into operation with effect from the date of issue and shall remain applicable for a period of five (5) years. All Solar Projects that are commissioned during the operative period shall be eligible for the incentives declared under this policy, for a period of ten (10) years from the date of commissioning - unless otherwise the period is specifically mentioned

5. APPLICABILITY OF THE POLICY

This solar policy shall be applicable for the following solar projects set up within the state-
1) Solar Power Projects (SPPs)

a) Grid connected solar power projects based on both Photo Voltaic (PV) as well as Solar Thermal technologies
• Projects set up for sale of power to TSDISCOMS
• Projects set up for the sale of power to third parties within the state

b) Projects set-up for captive generation/ group captive generation (including those funded and owned by developers).

2) Solar Rooftop Projects (SRPs) ( Grid-connected and off grid ) – This includes projects which are funded and owned by developers
3) Off-grid applications
4) Any other project which is established based on MNRE/GOI Schemes as amended from time to time.
5) Solar parks

For availing benefits under this policy, power generated from any of the above modes has to be consumed within the state. Demand-side management through energy conservation is integral to energy security. Hence, this policy aims not only at promoting grid connected projects but also promoting off-grid solar projects/applications.

6. REGULATORY FRAMEWORK

The Electricity Act 2003, as amended from time to time, mandates the State Electricity Regulatory Commission, to set tariffs for renewable energy as well as to issue regulations pertaining to renewable power purchase obligation (RPPO), and set charges for wheeling, transmission and distribution of electricity.

7. SOLAR PARKS

The solar park is a concentrated zone of the development of solar power projects, which provides developers, an area that is well characterized, properly infra-structured and where the risk of the projects can be minimized as well as the facilitation of the permitting process.
Solar park implementing agency would be formed by State Government along with designated central agency and private sector participation or independently by the private sector.

The Solar park implementing agency will help facilitate the development of supporting infrastructure and facilities including power evacuation, water arrangements, internal roads and administrative facilities.

These Solar Park(s) will host an array of players in the solar power sector including solar power plants, component manufacturers, R &D centers, training centers, and financial institutions. The State will extend all facilities and fiscal incentives provided by Central Government/ National Solar Mission to the manufacturers and other participants in Solar Parks.

8. SOLAR ROOFTOP PROJECTS`

The Government of Telangana is committed to the promotion of solar rooftop systems on public buildings, domestic, commercial and industrial establishments.

All incentives provided by the GOI/MNRE under the NSM or other schemes and incentives provided by the state government from time to time shall be extended to grid connected SRPs as well as off grid SRPs.
The following additional support shall be available to grid connected SRPs as per the capacity limit as defined by MNRE from time to time.

The consumers are free to choose either net or gross meter option for the sale of power to the DISCOMs under this policy. The tariff applicable for units generated under gross metering at 11 KV and below would be an average cost of service of the DISCOM as determined by TSERC. The tariff applicable for units under net metering would be average pooled power purchase cost. Projects under both gross and net metering would be subject to monthly billing and settlement.

No distribution losses/charges shall be applicable for SRPs.

Consumer installing grid connected SRPs shall apply online with the respective TSDISCOM either on the website/through designated customer service centers. All applications shall be processed and feasibility issued by the respective DISCOM. Such applications will be processed within 21 days from the date of application failing which it will be deemed to have been approved.

The above facility of gross and net metering would be extended to SRPs for a period of 25 years. The project size at a single location would be subject to technical constraints. The modalities of implementing the above policy directives for SRPs, including metering, billing, settlement, payment(s) and technical aspects etc. would be made available on the TSSPDCL /TSNPDCL website.

9. SOLAR PUMPSETS

The State Government in collaboration with the Central Govt/MNRE/MOP/Multilateral agencies will undertake measures to enable gradual replacement of conventional pump sets to solar powered pump sets through subsidy support. The Nodal Agency will engage with various stakeholders for materializing subsidies, grants and/ or incentives on behalf of TSDISCOMS. The scheme of a gross metering facility would be extended to project developers/ farmers for setting up solar powered pump sets in the State. The 7 modalities for implementing the solar powered pump set program including commercial framework and technical aspects shall be issued by DISCOM within 30 days from the date of issue of this policy.

10. SOLAR OFF GRID APPLICATIONS

The State Government and the DISCOMS, through various awareness programs, shall actively encourage the use of solar powered applications for both domestic, industrial as well as commercial purposes. The Nodal Agency shall work with DISCOMS to create an enabling framework with direct/indirect benefits for replacement of conventional applications with solar powered applications

11. EASE OF BUSINESS – ENABLING PROVISIONS

The State, in order to encourage solar-based generation, has prepared the following measures for improving the ease of doing business. However, the project developer has to ensure that the generation is within the time limit stipulated in the PPA or within a maximum period of 2 years from the date of application whichever is earlier, failing which the provisions under this policy automatically stands canceled. The following provisions are for Solar Power Projects (SPP) and solar parks, wherever applicable.

G. Rajendera Kumar