Waiver Period for Inter-State Transmission Charges and Losses for Solar Projects Extended to December 31, 2019

June 16, 2017


The waiver period for inter-state transmission (ISTS) charges and losses for solar projects has been extended to December 31, 2019. This waiver applies to solar projects that are commissioned on or before December 31, 2019; these projects will not be subject to ISTS charges. The waiver will be applicable for a period of 25 years from the date of commissioning.

Mercom had previously reported the waiver announcement of inter-state transmission charges and losses for wind projects commissioned by March 31, 2019, and solar projects commissioned by June 30, 2017.

“This is a welcome change for the sector as a whole, as it will help stabilize solar tariffs in the country,” stated an official at Ministry of New and Renewable Energy (MNRE). “The cost of solar has fallen drastically in the country and the extension of waiver period will help allay developer fears,” added the MNRE official.

“This is a good step taken by the Ministry of Power. The extension removes uncertainty and will help solar projects get developed in resource-rich areas and spread solar power consumption across the country like the proposed 750 MW solar project in Bhadla solar park in Rajasthan by Uttar Pradesh,” said Raj Prabhu, CEO of Mercom Capital Group.

Image credit: By Wayne National Forest, CC BY 2.0, via Wikimedia Commons