State-wise Solar Energy Policies in 2022 - Karnataka & Telangana

Karnataka

The Karnataka government is aiming to cover at least 20% of the state’s power production through Renewable energy projects. Solar plays a huge role in this with an installed capacity of 7500 MW. It also houses India’s Second-largest Solar power plant with a production capacity of 2050 MW.

For C&I Solar Projects, the state policy dictates that

● The Solar project power production be <= 150% of the Sanctioned load.

● Investors can apply for both Self-ownership and Third-party ownership models.

● Solar power projects are applicable for up to 40% Early Depreciation

● They also receive a 10 year Tax Holiday

● Solar power projects are scheduled for priority in low-interest loans for up to Rs. 15 Crores.

● Solar projects are exempted from banking duty, cross-subsidy charges, and wheeling charges.

Telangana

Telangana has introduced its Solar policy from 2016. It has a total solar energy capacity of 4520.48 MW as of March 2022. It ranks 5th in Solar power production in India.

The Telangana state policy for Solar Power production are:

● The total installed capacity of any Solar power project should be <=1MWp

● The power production must be <= 80% of the Sanctioned Load

● The cumulative capacity of all Solar projects installed in an area must be <=50% of the Local Distribution Transformer Capacity for LT level.

● In addition to Self-Ownership (CAPEX Model) and Third-party ownership (RESCO Model), the state also encourages existing consumers of Discom with 3 phase connections to invest in Solar energy.

● Solar projects are exempted from distribution losses, electricity duty, and cross-subsidy charges.

● The projects can choose to participate under the REC mechanism.

● In Gross Metering, the tariff for units generated <= 11 kV would be the average cost of service of Discom as set by the TSERC.

● Solar power projects are applicable for up to 40% Early Depreciation

● They also receive a 10 year Tax Holiday

● Solar power projects are scheduled for priority in low-interest loans for up to Rs. 15 Crores.

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