Uttar Pradesh Solar Energy Policy

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Uttar Pradesh solar energy policy

Uttar Pradesh Solar Energy Policy Updates 2017

A target of 10,700 MW for solar power, including 4,300 MW from rooftop solar projects, by FY 2022 has been set by the Government of Uttar Pradesh mentioned in the ‘Draft Solar Power Policy-2017’ for Uttar Pradesh in June 2017. At the time of announcing the policy remains in operation for a period of five years or until the government issues a new policy.

According to policy draft the state will help public and private sector entities develop solar parks with a minimum 100 MW capacity.

The State government will provide a subsidy of Rs. 10,000 (~$155)/kW up to a maximum limit of Rs 20,000 (~$310)/kW per consumer on a first come, first serve basis for the first 100 MW applications submitted online to Uttar Pradesh New and Renewable Energy development Agency (UPNEDA).

UPNEDA will undertake a single window clearance for all solar power producers. Banking of 100 percent energy in every financial year will be permitted and for 10 years, the electricity duty will not be levied on sales to distribution licensees, captive consumption, and third-party sales for all solar projects set up within Uttar Pradesh State.

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has proposed the use of aggregator model for installation of rooftop solar systems in July 2017 stating the settlement between the individual consumers in the group and the third party (if involved) will be the responsibility of the group and third party and will be driven by the agreement between them.

The aggregator model under a net-metering arrangement will allow the group or third-party owner to install rooftop solar captive power up to the total capacity of cumulative contracted load of the group of consumers connected with the same distribution transformer, up to 25 percent of the capacity of transformer.


The objectives of the state solar policy includes:-

  • Encouraging solar energy generation in the state and contributing towards sustainable development.
  • Attracting investments in manufacturing, research & development in solar energy sector.
  • Optimally utilising available solar resources & enabling stakeholders to reducing green-house gas emissions.
  • To contribute to productive use of waste-lands.
  • To enhance skills and create employment opportunities.
  • To promote establishment of local manu-facturing facilities.
  • To build capacity in the State to initiate and sustain, use and effective management of newer technologies.



Grid connected solar power projects will be implemented on suitable land banks identified and procured by the developer. In case of projects to be set up on government land or space, selection of the developer will be done by the department or nodal agency through a transparent process.


Provision of special incentive will be made by the State Government on case to case basis for such solar farms where many power plants based on solar energy are installed and the total investment is more than Rs.500crores.


UP government introduced rooftop solar policy in 2014, the policy aims to promote solar energy generation for self-consumption, while excess energy will be injected into the distribution network.


  • Any person, which shall include any com-pany or body corporate or association or body of individuals, whether incorporated or not, shall be eligible to set up rooftop solar PV plant for the purpose of captive use/ self- consumption of electricity.
  • They may approach Uttar Pradesh New
  • and Renewable Energy Development
  • Agency for implementation of such power plants.
  • Plants to comply with the technical stan-dards and specifications, if any, specified by the Central/State Government or through its nominated nodal agency.


  • The Successful Bidders, who execute the Agreement with UPNEDA for the work, shall have to furnish a Security deposit the amount equivalent to 1 0 % of total value of the contract in the form of Bank Guarantee valid for a period of 12 months from the date of execution of Agreement.
  • Security Deposit shall be in the form of an unconditional and irrevocable bank guarantee for due performance of the Con-tract, in accordance with the sample form included in the policy.
  • In case of any extension of the Completion Period, the validity of all the Security Deposit shall be extended by such period of delay.
  • The security money shall be forfeited if contractor fails to perform the work within the stipulated time period or such period extended by UPNEDA.
  • The security money shall be returned after successful installation and commissioning of the project.
  • All bank charges and other charges in connection with the bank guarantee shall be borne by the Contractor.

(As per UPNEDA Tender)


  • Special incentive on case to case basis for solar farms having investment over Rs.500 crores.
  • Incentives under the Uttar Pradesh State Industrial Policy, 2012 to be applicable to the solar power plants.
  • Cost of construction of transmission line and substation in the Bundelkhand region, to be borne by the State Government.
  • Nodal agency to act as Single Window Clearance.

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