The Uttar Pradesh government has released its Draft UP Solar Power Policy 2017. According to this policy, the state government proposed to meet the target of generating 10,700 MW solar power. This includes 4,300 MW from rooftop solar projects, by financial year 2022.
Under the proposed policy, the government will set up solar parks with a minimum capacity of 100 MW. The State, through the Uttar Pradesh Power Corporation Limited (UPPCL) or the distribution licensee, will offer to purchase 100 per cent of the power generated from a solar park.
It will also be mandatory to have at least 50 per cent of the power generated from the parks to be sold to a UPPCL Distribution Licensee. These benefits will be extended to private solar park developers.
A Central Financial Assistance (CFA) of ₹ 25 lakh for detailed project report for each solar park and ₹ 25 lakh per MW or 30 per cent of project cost will be made available for the solar park.
The state has also proposed to provide a subsidy of ₹ 10,000 per KiloWatt to a maximum limit of subsidy ₹20,000 per consumer to encourage grid connected roof top solar set ups. The incentive will be available on a first-come, first served basis for the first 100 MW applications submitted to the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA). The subsidy will be disbursed to the beneficiary after successful installation and commissioning of rooftop solar systems with net metering.
Electricity duty on solar power shall be exempted for sale to the distribution licensee for ten years.
Policy proposes to source 8 per cent of its electricity requirements through renewable energy by 2022.