Madhya Pradesh Solar Energy Policy

Madhya Pradesh Solar Energy Policy MPPCL Issues Tender for Procurement of 500 MW Energy Storage Capacity

Madhya Pradesh Solar Energy Policy

Madhya Pradesh Solar Energy Policy Updates 2017

The payment guarantee to be provided to solar project developers in the Rewa Ultra Mega Solar (RUMS) park approved the state cabinet of the Government of Madhya Pradesh in September 2017.


The objectives of the Madhya Pradesh Solar Energy Policy are as follows:

  • To encourage participation of Private Sector to set up Solar Power based projects in the State.
  • To define the incentives and benefits to be provided to the participants of the Private Sector in clear terms.
  • To build a favorable atmosphere for setting up Solar Power projects.
  • Lay down framework for policy imple-mentation.
  • To encourage broader community involve-ment and growth of decentralized Rene-wable Energy Systems.
  • To reduce dependence on conventional sources of energy and reduce carbon emis-sions.
  • To provide impetus to growth of clean technology in the state of Madhya Pradesh.
  • To reduce distribution losses of distribution licensees by decentralized generation.
  • To improve tail-end grid voltages and reduce system congestion.
  • To help the State achieve its RPO (Rene-wable Purchase Obligation).
  • To develop sustainable energy solution for future, and help in achieving energy security of the nation.
  • To encourage job creation in the down-stream Renewable Energy market segment.
  • To help the community realize the imp-ortance of judicious use of electricity and involve them in the process of reducing dependence on conventionally produced electricity.


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


a) All Solar energy based power project Developers (Solar PV/Solar thermal) and manufacturing units of equipments, anc-illaries related to Solar Power projects shall be eligible for benefits under the Policy.

b) Only new plant and machinery shall be eligible for installation under the Policy. 

The Government of Madhya Pradesh in its endeavor to promote rooftop Renewable Energy Systems would encourage them to operate in the following way:-

a. Grid Connected Renewable Energy Systems.

Category I: On Net Metered basis.

Category II: On Gross Metered basis through wheeling & banking for captive use and/or third party sale.

Category III: Captive installation with no export of energy

b. Off – Grid Renewable Energy Systems 


The state would take appropriate steps to set up solar parks to promote investment in solar power generation in the state either on its own or through a PPP mode. Solar technology parks for generation and manufacturing units in equipment & related ancillaries for Solar systems shall be promoted and established at appropriate locations in the state of Madhya Pradesh. 


In order to promote utilization of Renewable energy, all categories of consumers, who are consumers of electricity in the area of supply of the Distribution Licensee, and who use a renewable energy system installed in their premises to offset part or all of their electrical requirement, are considered as ‘Eligible Consumers’. Such renewable energy systems can be self-owned or third party owned. Bulk consumers, i.e., single point connection owners, can also avail the facility of Net Metering arrangement. 


In case the project is found to be eligible after evaluation, a demand note for depositing the requisite processing fee will be issued within fifteen (15) days and such Developers will be required to deposit the processing fee (non-refundable) of Rs. 1 Lac/MW or part thereof and get the project registered within a period of fifteen (15) days from the issuance of the demand note; and c) In case of failure to submit the processing fee within the stipulated timeline (15 days), the application for registration of the project by such Developer shall be considered cancelled.


  • SPPs exempted from electricity duty and cess for 10 years from COD.
  • Projects eligible for benefits under industrial promotion policy.
  • Equipment exempted from VAT and entry TAX.
  • No license required for Generation and Distribution in rural area 

For Rooftop

Installation of Net Metered Renewable Energy System under the Policy shall be exempted from banking charges, wheeling charges and cross-subsidy charges, subject to MPERC (Grid Connected Net Metering) Regulations, 2015 and amendments thereof.

The quantum of energy produced from the Renewable Energy System of a Net Metered Consumer, who is not defined as Obligated Entity, shall qualify towards compliance of Renewable Purchase Obligation (RPO) for the distribution licensee in whose area of supply the Net Metered Consumer is located.

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