Andhra Pradesh Solar Energy Policy

Andhra Pradesh Solar Energy Policy Andhra Pradesh Set to Usher 5,314 MW of Renewable Energy

Andhra Pradesh Solar Energy Policy

Andhra Pradesh Solar Energy Policy Updates 2017

  • The state’s renewable purchase obligation (RPO) is set at 9 percent in April 2017 by the Andhra Pradesh Electricity Regulatory Commission (APERC) for the financial year FY2017- 2018. Out of the 9 percent, the 6 percent for the non-solar RPO excluding the large hydro.
  • The RPOs up to financial years FY2021-2022 have been set consecutively, required the state to have generated capacity of 17 percent from renewable energy of which 7 percent corresponding to solar and rest 10 percent for non-solar by 2022.
  • The New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) has established Rs. 80,000 (~$1,238.87) as project cost for a 1 kW rooftop solar project, Rs. 1,43,000 (~$2,214.48) for a 2 kW rooftop solar project, Rs. 2,19,150 (~$3393.73) for a 3 kW rooftop solar project, Rs. 2,64,680 (~$4098.80) for a 4 kW rooftop solar project, and Rs. 3,45,000 (~$5342.63) for a 5 kW rooftop solar project inclusive of GST and other applicable taxes.


  • To target a minimum total solar power capacity addition of 5,000 MW in the next five years in the State with a view to meet the growing demand for power in an enviro-nmentally sustainable manner.
  • To develop solar park(s) with the necessary utility infrastructure facilities to encourage developers to set up solar power projects in the State.
  • To promote distributed generation that can help in avoiding upstream network cost and contribute towards loss reduction.
  • To deploy solar powered agricultural pumpsets and meet power requirements of farmers during day.
  • To promote local manufacturing facilities which will Generate employment in the State.


Andhra Pradesh Solar Energy Policy is applicable for the following solar projects set-up within the state:-


The State Government, under this policy, will help facilitate in building up the necessary infrastructure like power evacuation, water requirements and internal roads.

The state government announced to develop Solar Parks with capacity additions of around 2,500 MW in the next five (5) years to promote Solar Power Projects development in clusters of 500-1000 hectares.


The Government is promoting solar rooftop systems on public buildings, domestic, commercial and industrial establishments on gross and or net meter basis. The applicable tariff for either of the cases shall be equal to the average cost to serve of the Discom which will be determined by APERC every year.



All registered companies, Government entities, partnership companies/ firms, indi-viduals and all consumers of APDiscom(s) will be eligible for setting up of Solar Power Projects within the State for sale of electricity/ captive use, in accordance with the Electricity Act-2003, as amended from time to time. The entity desiring to set up Solar Power Project shall intimate the Nodal Agency as per the policy.


As per Transmission Corporation Of Andhra Pradesh Limited the developer(s) shall deposit an amount of Rs 2.00 Lakhs/MW in form of BG as EMD/Security Deposit, which will be refunded if the project is commissioned within stipulated time. In case the developer is unable to complete the project within stipulated period, EMD/SD shall be forfeited besides encashment of BG.


  • Transmission and Distribution charges shall be exempted for wheeling of power generated from Solar Power Projects for only captive use/third party sale within the State.
  • Distribution losses shall be exempted only for Solar Power Projects injecting at 33 kV or below irrespective of voltage-level of the delivery point within the Discom.
  • Banking of 100% of energy shall be per-mitted for all Captive and Open Access/ Sch-eduled Consumers during all 12 months of the year. Banking charges shall be adjusted in kind @ 2% of the energy delivered at the point of drawal.
  • Intra-state Open Access clearance for the whole tenure of the project or 25 years whichever is earlier will be granted as per the APERC Regulations amended from time to time.
  • Electricity duty shall be exempted for captive consumption, sale to Discom(s) and third party sale provided the source of power is from Solar Power Projects setup within the State.
  • Cross subsidy surcharge shall be exempted for third party sale provided the source of power is from Solar Power Projects setup within the State for a period of five (5) years from the date of commissioning of the SPP.
  • All projects developed with the above incentives will be eligible for REC benefits subject to applicable regulations/orders of the appropriate commission.
  • Generation of electricity from Solar Power Projects shall be treated as eligible industry under the schemes administered by the Ind-ustries Department and incentives available to industrial units under such schemes shall be available to the solar power producers.
  • Deemed Non-Agricultural (NA) status for the land where Solar Power Projects will be accorded, on payment of applicable statutory fees.
  • Solar PV power projects will be exempted from obtaining any NOC/Consent for esta-blishment under pollution control laws from AP Pollution Control Board.

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