The state government of Uttar Pradesh targets 22 GW of solar power generation capacity in the state over the next five years under its Solar Policy 2022. Out of the targeted capacity, 14 GW is to be achieved through solar parks, 4.5 GW through residential rooftop solar projects, 1.5 GW through non-residential rooftop projects, and 2 GW through the PM Kusum Yojana.
The state government has allocated a budget of INR 7,698 crore ($944.4 million) to achieve these and other objectives under its Solar Policy 2022 which is applicable for five years.
Under the new policy, the Uttar Pradesh government targets 4.5 GW of power generation through rooftop systems on 13.5 lakh houses in the state. In addition to the central financial assistance provided by the Central Government, the State Government will provide a maximum grant of INR 30,000 at the rate of INR 15,000/kW for this purpose.
A target has been set to generate 1.5 GW of electricity by installing solar systems on the roofs of non-residential buildings such as government buildings and all types of government or non-government educational institutions.
The net metering facility is made available on the installation of solar rooftop systems in the residential sector, government buildings, and all types of government or non-government educational institutions.
The facility of net billing will be allowed soon for the solar rooftop systems installed on the other categories of non-residential buildings under the directions of the Uttar Pradesh Electricity Regulatory Commission.
The policy aims to make Uttar Pradesh a leading state in the setting up of solar parks with storage systems. To promote such parks, the state government will provide a capital subsidy at a rate of INR 2.5 crore per MW to solar parks established with a storage system of 5 MW or more capacity. With this, solar energy can be stored and supplied at the time of peak load.
Developers of these projects will have the option to sell power to the Power Corporation in Uttar Pradesh or to other industrial units of the state through open access.
Gram Sabha land can be given on lease for a maximum period of 30 years for the establishment of solar parks. For this, lease rent will be taken at the rate of INR 1 per acre per year from solar parks to be established in the public (government) sector and at the rate of INR 15,000 per acre per year from solar parks to be established in the private sector.
Under component C-1 of PM Kusum Yojana, the central government provides a 30% subsidy to farmers for solarizing their tubewells. To implement this scheme effectively in the state, the Uttar Pradesh government will provide 70% more subsidy in addition to the grant permitted by the central government, to farmers of Musahar, Vantangia, and Scheduled Tribes living in Uttar Pradesh. In this way, the tube wells of this category of farmers will be solarized free of cost.
Other farmers will be given 60% more grant in addition to the subsidy permitted by the Central Government. In this way, farmers of other categories will receive a 90% government subsidy for solarizing their tubewells and they will have to pay only 10%, which is estimated to be a maximum of around INR 55,000.
Under Component C-2, for the solarization of agriculture feeders, the Central Government provides a grant at the rate of INR 1.05 crore per MW. The State Government will provide an additional grant at INR 50 lakh per MW for viability gap funding of these projects.
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