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Solar Energy in Andhra Pradesh – Read How New Solar Policy differentiates itself from other States

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Solar Energy in India is not only being driven by the Central Government (mainly through JNNSM) but also by individual states. While Gujarat has been spectacularly successful with its solar policies installing almost 65% of the total solar energy capacity in the country, other states are trying to catch up. Karnataka, West Bengal, Orissa, Maharashtra, Rajasthan have all come up with new solar support policies with mixed success. One thing is for sure no one has been 10% as good as Gujarat in promoting solar energy in the country.

Andhra Pradesh which is one of the biggest southern states in the country has now come up with a new solar policy which looks very different from the reverse auction solar policies announced by other states. Note AP is suffering from one of the worst power deficits in the country with industries finding it difficult to function in the absence of power. With India’s power policy mostly in a mess, states are being compelled to look at alternative sources of power particularly solar energy whose costs have fallen off a cliff in the last couple of years. While most states have given out solar ground mounted farms to project bidders, Andhra Pradesh has differentiated by giving out a number of soft and hard policy incentives to solar energy generators in the state. Here are some of the key features of the new solar policy.

Andhra Pradesh Solar Power Policy– 2012

There will be no wheeling and transmission charges for wheeling of power generated from the Solar Power Projects, to the desired location/s for captive use/ third party sale within the state through 33 KV system subject to industries maintaining their demand within its contracted demand Cross subsidy surcharge shall not be applicable for Open Access obtained for third party sale within the state subject to the industries maintaining their demand within its contracted demand with the DISCOMs.

All Solar Power projects will be exempted from paying Electricity Duty for captive consumption and third party sale within the state. All projects developed with the above incentives will also be eligible for REC benefits. Deemed injection into the grid for in-house captive solar generation plant (in the same premises) will be considered for issue of REC. Solar projects will get refunds on value-added tax paid for equipment and on land duty and registration charges for sites. Fast Track Approval Process permits to build grid connections within 21 days. These incentives will be in force for a period of seven years from the date of implementation. New and Renewable Energy Development Corporation of A.P. Ltd (NREDCAP) shall be the State Govt. Nodal Agency for clearance, facilitation and implementation of the proposed Solar Power Policy. These incentives will be available for 7 years for solar power plant developers building a solar panel plant till June 2014.

More details can be found here.


Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to

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