Andhra Pradesh Government’s new solar power policy…


The government of Andhra Pradesh has recently announced its State Solar Policy on 26th Sep 12. Unlike other states’ solar policies, AP Government has sot specified any policy with respect to feed-in-tariffs or competitive bidding schemes etc rather they have put emphasise on developing solar power through REC Mechanism.

Following are some of the major policy incentives…

  • Banking:
    • 100% banking is permitted from January to December of the year.
    • Banked units can not be adjusted during February to June and during evening peak hours 6.30 PM to 10.30 PM.
    • The banked energy will attract banking charge of 2%.
  • Exemption of Wheeling and Transmission Charges: For all the intra-state open access transactions (through 33kV system), wheeling and transmission charges are exempted.
  • Exemption of Cross Subsidy Surcharge (CSS): Consumers purchasing power from solar projects are exempted from CSS. This will be a great relief for consumers as CSS remains the major cause of worry for consumers as well as develop-ers opting for third-party sale / open access.
  • Exemption of Electricity Duty: E-Duty is also exempted for all the solar power projects opting for third party sale and/or captive usage.
  • Refund of VAT, Stamp Duty and Registration Charges: Solar developers will be able to get the refund of the said charges.

The above incentives are applicable only if the project is commissioned by June 2014. The incentives are extended for the period of 7 years.

The major concern is for the CPPs in the state as they cannot claim RECs on availing the above benefits. It will raise conflict regarding the state and central regulation on REC mechanism.

Read the full policy document here…

Andhra Pradesh Solar Policy 2012 Abstract


More Literature on this topic…


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