Haryana’s Amended Solar Policy Provides Exemption of Wheeling and Cross Subsidy Charges

A 10-year exemption from wheeling and transmission charges for captive solar projects


The Haryana Renewable Energy Development Agency (HAREDA) has amended its guidelines for megawatt-scale ground-mounted and rooftop solar photovoltaic (PV) projects meant for captive consumption or third party sale. These guidelines fall under the Haryana Solar Power Policy 2016.

Under the policy guidelines, developers can install at any location in the state, but they must interconnect these projects with stations of 11 kV capacity or greater.

HAREDA has now amended a provision related to the exemption of wheeling, transmission, cross-subsidy charge, and additional surcharges.

Key Points from the Amendment

·         Wheeling and transmission charges will not be levied for 10 years from the date of commissioning for all those captive solar PV projects which have submitted applications for its registration, purchased land or have taken the land on lease for 30 years and have bought equipment and machinery or invested at least ₹10 million (~$0.14 million)/MW to set up such captive solar PV projects till February 13, 2019.

·         To determine the investment of ₹10 million (~$0.14 million)/MW, payment for equipment should be made into the bank accounts of equipment supplier before February 13, 2019, and proof of the same must be submitted.

·         Cross-subsidy surcharges and additional surcharges are not applicable for captive solar PV projects according to the provisions of the Electricity Act 2003.

·         No waiver of wheeling and transmission charges, cross-subsidy surcharges and additional surcharges will be given to solar PV projects set up for the third-party sale of power.

·         Against the waivers, renewable purchase obligation (RPO) benefit will be provided to power utilities/distribution companies.

·         Banking will be provided for captive/third-party solar PV generation projects, but applicable banking charges will apply.

In 2018, HAREDA had issued guidelines stating that wheeling charges, cross-subsidy charges, transmission and distribution charges, and additional surcharges will be completely waived for third-party sale or open access consumers of energy from ground mounted or rooftop solar projects commissioned during the control period.