The Government of Gujarat has recognized the growing impacts of the climate change at local and national levels and has formulated various policy initiatives to mitigate the impact of this rising concern.

Here, we summarize the new initiatives the government has involved in content with the existing policy until the implementation guideline is rolled out.

Summary of Policy for RESIDENTIAL CONSUMERS

As per the new policy, the Residential Consumers can now not just settle but also sell the additional solar units generated by their rooftop solar PV system. This shall benefit those owning a bigger rooftop space.

SR. NO.

PARTICULARS

EXISTING PROVISIONS

REVISED POLICY

1

Capacity Restriction

No restriction on installed capacity

 

Same as in existing policy.

2

Incentive / Subsidy

As per Government of Gujarat, scheme announced from time to time

3

Energy Accounting

As per biling cycle

4

Transmission & Wheeling Charges

None

5

Banking Charges

None

6

Electricity Duty

As per the provision of Gujarat Electricity Duty Act, 1958

7

Third-party Sale

Allowed

8

Surplus Injection Compensation

 

For self-consumption

Rs.2.25/Unit for first 5 years, thereafter  75% of lowest tariff discovered in GUVNL bid

 

 

 

Same as in existing policy

 

 

For Third-party Sale

75% of lowest tariff discovered in GUVNL bid.

9

Cross Subsidy & Additional Sub charges

Not applicable for self-consumption.

 

 

Not applicable for self-consumption.

 

Applicable in case of third-party sale.

10

Ownership,

Lease Agreement,

Power Sale Agreement

Only Ownership Allowed

Developer can set up solar plant on Rooftop and enter into lease agreement & Power Sale agreement.

Summary of Policy for CAPTIVE USE/CAPEX CONSUMERS

As per the new policy, the Industrial, Commercial, Institutional and other Consumers would be charged for additional banking charges. It indicates the prime consideration of revising the entire grid system while integrating the micro-grids that store and manage the solar generated electricity.

Just like the internet set its space in communication networking as data-network, the solar electricity seems to set its space in the existing grid system as micro-grid storages.

SR. NO.

PARTICULARS

EXISTING PROVISIONS

REVISED POLICY

 

Capacity Restriction

No restriction on installed capacity

Same as in exisiting policy

 

1

Energy Accounting

 

 

 

 

Energy set-off; Between 07.00 hours to 18.00 hours of same day

 

For HT/EHV consumers:

Energy set-off; Between 07.00 hours to 18.00 hours of same day

 

For LT demand-based consumers:

Energy set-off; Between 07.00 hours to 18.00 hours in the billing cycle basis.

 

For LT Consumer : Other than demand-based consumers:

Energy set-off shall be on billing cycle basis.

 

2

Transmission & Wheeling Charges

As decided by GERC from time to time

Same as in existing policy.

3

Banking Charges

–           

MSME units and other than Demand Based Consumers:

Rs.1.10 per unit on solar energy consumed

 

For demand-based consumers:

Rs.1.50 per unit on solar energy consumed

 

For Government Buildings:

Exempted

4

Electricity Duty

As per the provision of Gujarat Electricity Duty Act, 1958

 

Same as in existing policy.

5

Surplus Injection Compensation

 

For MSME:

Rs.2.25 for first 5 years, thereafter 75% of simple average of tariff discovered in GUVNL bid

 

For Others:

75% of simple average of tariff discovered in GUVNL bid

6

Cross Subsidy & Additional Subcharges

Exempted

7

Collective Ownership

Solar Projects Installation & Usage of Generated Power  with collective ownership of more than one consumer investing / holding 100% Equity amount shall be allowed in the ratio of their equity.

Summary of Policy for THIRD PARTY SALE

For Industrial, Commercial, Institutional & Other consumer

The state government finally initiates the third-party sale model for Gujarat. This entire clause is added to attract investors opting for regular and hassle-free passive income.

SR. NO.

PARTICULARS

ADDITIONAL PROVISIONS

1

Energy Accounting

For HT/EHV consumers:

Energy set-off; Between 07.00 hours to 18.00 hours of same day

 

For LT demand-based consumers:

Energy set-off; Between 07.00 hours to 18.00 hours in the billing cycle

 

For LT Consumer other than demand-based consumers:

Energy set-off shall be on billing cycle basis.

2

Transmission & Wheeling Charges

As decided by GERC from time to time

3

Banking Charges

For Demand-based consumers:

Rs.1.50 per unit on energy consumed

 

For Government Buildings:

Exempted

 

MSME units and other than Demand Based Consumers:

Rs.1.10 per unit on energy consumed

4

Electricity Duty

As per the provision of Gujarat Electricity Duty Act, 1958

5

Surplus Injection Compensation

 

75% of simple average of tariff discovered in GUVNL bid

6

Cross Subsidy & Additional Subcharges

As decided by GERC from time to time

SUMMING UP

The new Gujarat Solar Power Policy 2021 allows the third party sale for generated solar units for all the consumers, that is, residential, institutional, commercial and industrial. Thus, the consumers can install the solar PV system based on their investment portofolio and sell any of the excess electricity to the government. The twist for the Institutional, commercial and industrial consumers comes with the new banking charges applicable for the storage of the solar units.

As per the new policy, the government looks forward to cut down the dependency on conventional coal-based power generation and help the MSME industry in its production cost. The operative Period for the new policy is for five years, that is, upto 31.12.2025.

Acronym Full Forms

  • LT-Low Tension Lines
  • HT-High Tension Lines
  • HT/EHV – High Tension/Extra-high Voltage Lines
  • MSME – Ministry of Micro, Small & Medium Enterprises
  • GERC – Gujarat Electricty Regulatory Commission
  • GUVNL – Gujarat Urja Vikas Nigam Limited