India Renewable Energy Policy Roundup: September 2016


Here is a policy roundup from central, state and government agencies from the month of September covering renewable energy in India.

The Haryana Electricity Regulatory Commission (HERC) has raised the incentive offered by the state government to rooftop solar in the state. Now, residential homes with rooftop solar installed will get an incentive of Rs.1 (~$0.0149)/kWh, this is four times the previous incentive of Rs.0.25 (~$0.0037)/kWh.

Indian Renewable Energy Development Agency (IREDA) has proposed a “credit enhancement guarantee program” aimed at raising bonds by project developers for solar and wind energy projects which have been in operation for a minimum of one year. Under this program, IREDA can extend guarantee up to 25 percent of the proposed issue size of the bonds as per the latest audited balance sheet.

The Madhya Pradesh state government has released the Madhya Pradesh Renewable Energy Policy 2016 with focus on solar PV systems and all key provisions like interconnection framework, technical specifications and the like that have been adopted keeping solar PV systems in view. Renewable Energy (RE) systems installed under this policy shall not be treated as “construction,” and, therefore, would not attract any additional liability of property tax for installation of RE systems on rooftops or premises. The equipment/parts purchased for installation/repairs/maintenance of RE systems under this policy will be exempted from VAT and entry tax, as per the exemption granted to these systems under Madhya Pradesh VAT (Amendment) Act – 2009 and subsequent amendments thereof.

The state government will provide 30 percent subsidy to users installing on their own rooftops or land. Government buildings and government owned lands when used are expected to fetch the developer a subsidy of 45 percent to 50 percent.

The Andhra Pradesh Electricity Regulatory Commission (APERC) has proposed a new renewable purchase obligation (RPO) target of 25.25 percent for the FY 2021-22, which includes a solar RPO of 12.75 percent. These RPO numbers are just a draft proposal at this stage and open for comments. The distribution companies (DISCOMs) would purchase renewable energy at a tariff set by the commission or at a tariff determined in a reverse auction. According to APERC, Andhra Pradesh is going to see a lot of activity in the renewable energy sector and the increased RPO will help alleviate curtailment and other issues faced by the sector.