1. With the aim to keep pace with the changing needs of the Solar Energy Sector and vision of becoming a major contributing State for achieving the national target of 100 GW capacity of solar energy by 2022 as a part of global commitment, the State Government of Rajasthan has notified the Rajasthan Solar Energy Policy, 2019 (Solar Energy Policy, 2019) on December 14, 2019. The Solar Energy Policy 2019 comes into operation from December 14, 2019 and also visions to promote new technologies in solar energy generation and storage to make solar energy more cost competitive and reliable.
2. Solar Energy Policy, 2019 has been issued with the target to install 30,000 MW Solar Power Projects up to 2024-25 in the State of Rajasthan for sale of power to distribution companies (DISCOMs) and for captive consumption, within and outside the state. In order to achieve its objective, the Solar Energy Policy bears in mind the need for upgradation of transmission and distribution infrastructure. The capacity of 30,000 MW has been deployed under the following segments:

• 24,000 MW has been allotted to Utility/Grid Scale Solar Parks;
• 4000 MW to Distribution Generation;
• 1000 MW to each Solar Rooftop and Solar Pumps.

It is also the endeavor of Solar Energy Policy, 2019 for sale of power by solar power generators to parties other than Rajasthan DISCOMs (within and outside the State). Rajasthan Renewable Energy Corporation Limited (RREC) has been appointed as the nodal agency for registration, approval and development of solar parks. It has also been entrusted with selection of projects by competitive bidding, government land allotment, facilitating approvals including power evacuation and execution of PPA / WBA with Rajasthan DISCOMs/ RVPN/NVVN/RUVNL/SECI among such other.

Salient features of the Solar Energy Policy, 2019

3. The Solar Energy Policy, 2019 has the following key segments:-

• Installation of Rooftop PV Solar Power Systems with Net Metering;
• Decentralized Grid Connected Solar Power Projects;
• Off-grid solar applications;
• Utility grid power projects;
• Development of solar parks;
• Registration and approvals;
• Incentives/ facilities available to Solar Power Projects;
• Approval Mechanism.

Re: Installation of Rooftop PV Solar Power Systems with Net Metering

4. The State Government will endeavour to develop 33 district headquarters as ‘Green Energy Cities’ in next 5 years by installing 300 MW of Solar Rooftop Systems in the following manner:

• By promoting setting up of grid connected Rooftop PV Solar Power Plants under Net metering[1] DISCOMs to allow Solar Rooftop capacity addition up to 50% of the capacity of distribution transformer of the area.
• Rooftop Solar Power Plants can be set up on Government Building on RESCO[2]
• Rooftop consumers will be provided subsidies/incentives as per the guidelines of MNRE/State Government.
• Benefits, such as banking facility and payment of surplus energy by DISCOMs under Net-metering Scheme as applicable to domestic consumers, will also be applicable to Government-Offices, Schools, Colleges, Hospitals and any other Government buildings notified by State Government under the Net Metering Scheme.
• Maximum time period for execution of various activities in respect of Solar Rooftop Systems under Net Metering by DISCOMs will be as under:

5. Solar Rooftop Systems can also be set up under Gross Metering[3] Scheme as per the guidelines prescribed by the State Government/Government of India. The entire generated power will be supplied to DISCOMs at a tariff determined by RERC. Solar Rooftop Systems up to 1 MW capacity will be allowed under this Scheme.

Re: Decentralized Grid Connected Solar Power Projects

6. The State to promote setting up of decentralized solar power projects with a minimum and maximum capacity of 0.5 MW and 3 MW respectively in the premises and vicinity of 33 kV Grid Sub-Stations for sale of power to DISCOMs. Substations for such solar power projects will be selected by RUVNL/DISCOMs. Further, tariff for these projects will be determined through tariff based competitive bidding process / guidelines of State Government/ Government of India.

Re: Off-grid solar applications 

7. The State Government will promote and incentivize off-grid solar applications, including hybrid system as per MNRE guidelines to meet various electrical and thermal energy requirements for domestic and commercial use. The State will also promote setting up of solar power plants by persons for sale of power to consumers through its own distribution system/local solar grid, setting up of stand-alone solar systems to provide electricity to households in remote Villages /Hamlets (Dhanis) and further promote installation of Solar PV Pumps for pressure irrigation systems.

Re: Utility Grid Power Projects

Through the Solar Energy Policy 2019, various categories of projects have been provisioned along with their respective terms including exemption / levy of certain charges, levies and duties. The said categories are set out herein below with brief description :-           

8. Solar Power Projects in Rajasthan for sale of power to DISCOMs of Rajasthan:

Promoting setting up of solar power projects for sale of power through competitive bidding process:

• To fulfil Renewable Purchase Obligation (RPO) target fixed by RERC.
• DISCOMs/RUVNL may purchase solar power beyond RPO limit and avail benefit of REC in terms of CERC Regulations/ NLDC guidelines.

9. Solar Power Projects sanctioned under guidelines/schemes of MNRE:

Promoting setting up of Solar Power Projects under the Guidelines/Schemes of MNRE or Solar Power Projects allocated through competitive bidding by/for other State Utilities/Entities.

10. Solar Power Projects for captive use:

The State will promote setting up of solar power projects for captive use as under:

• Solar Power Projects within premises of a consumer of Rajasthan:

• Solar Power Projects outside the premises of consumer of Rajasthan:

• Solar Power Projects set up in the State for captive use outside Rajasthan through open access:

11. Grid connected Solar Power Projects for Third Party Sale:

The State will promote setting up of solar power projects for third party sale within/ outside the State as under:

• Solar Power Projects within premises of consumer of Rajasthan (Under RESCO Mode):

• Solar Power Projects set up for sale of power within State through open access:

• Solar Power Projects set up for sale of power outside State through open access/power exchange:

12. Solar Power Projects with Storage Systems:

To reduce the variability of output of solar power injected into the grid and ensure firm power for a particular period, promotion of Solar Power Projects with storage systems in form of Battery Storage, Pumped Hydro Storage or any other grid interactive Storage System is envisaged. Initially, power up to the capacity of 5% of RPO target in MW (Solar & Non-Solar combined) from Solar Power Projects with Storage Systems (including Wind and Wind-Solar Hybrid Power Projects with Storage Systems), will be procured by Rajasthan DISCOMs at a tariff discovered through competitive bidding, in addition to the RPO target.

Solar Energy Policy, 2019 provides that “The minimum rated energy capacity of an Energy Storage System (ESS) shall be equal to ‘X/2’ MWh, where ‘X’ is the installed capacity of the Project in MW. For example, in case the installed capacity of a Project is 50 MW, then minimum energy rating of the ESS installed shall be 25 MWh.”

Re: Development of Solar Parks

13. A special purpose vehicle (SPV) being Rajasthan Solarpark Development Company Ltd., in the form of a subsidiary company of RREC, has been established for development of infrastructure and management of Solar Parks. RREC will develop Solar Parks in Rajasthan on its own or through any other SPV which may be created as required.
14. State will promote development of Solar Parks by Private Sector. The Private Sector Solar Power Park Developer (SPPD) will:

• Submit an application in the prescribed online format to RREC for development of Solar Park;
• Application shall accompany a non-refundable Registration charge @ INR 10,000/ MW + GST subject to maximum of INR 10 Lac + GST for each Solar Park;
• RREC will complete the processing of Registration application within a period of 30 days.

15. SPPD shall create common infrastructure facilities for development of Solar Parks such as:

• creation of power evacuation systems,
• development of roads,
• lights, water supply systems,
• other administrative support systems.

16. Land conversion not required in accordance with the provisions of Rajasthan Tenancy Act 1955 and Rajasthan Land Revenue Act 1956 and the rules made thereunder for the development of Solar Park on Private Agriculture Land. Allotment of Government land to Private Sector Solar Power Park Developer(s) for development of Solar Park(s) will be considered on recommendation of RREC.
17. The State will promote development of Solar Parks in Joint Venture with private developers by investing up to 50% equity or any other percentage of equity participation as decided by the state government. The cost of land allotted by state government would be part of its equity participation in the Joint Venture Company. The State Government will separately formulate guidelines regarding selection of partner for the formation of Joint Venture Companies in a transparent manner for the purpose of development of Solar Park.
18. The State Government on its own or through any other agency designated by it will promote setting up of Ultra Mega Renewable Energy Power Park (UMREPP) in Joint Venture with Central Public Sector Undertakings.
19. Pursuing the aim to shift to clean and green transport. the State will promote the use of Renewable energy for charging of Electric Vehicles (EV) in the following manner:

• The Charging Infrastructure will be developed as per the guidelines and standards issued by Ministry of Power and Central Electricity Authority.
• Government land will be allotted at 50% concessional rate for first 500 Renewable Energy based EV Charging Stations installed within 5 years from the date of commencement of this policy.
• The charging station service providers may set up renewable energy generation plants within their premises for captive use, and may also draw renewable power through open access from generation plants located within the State to avail the benefits as provided under clause 16 of this policy.

Re: Registration and Approvals of Solar Power Projects

20. RREC being the nodal agency will register all projects installed in State through an online application. Each Developer/ Power Producer will deposit non-refundable registration charge with RREC as under:

21. Importantly, Solar Power Projects registered prior to Solar Energy Policy, 2019 and three years before the commencement of Solar Energy Policy, 2019(for which project developer has not applied for in-principle clearance), the registration of such projects shall be allowed to be re-validated within 6 months from December 14, 2019 by depositing INR 5,000 per MW with applicable GST. In absence of the same, registration of such projects shall be deemed to have been cancelled. Further, such revalidated Projects will be required to apply for in-principle clearance within 1 year from the date of re-validation, failing which the registration shall be deemed to be cancelled.
22. Solar Power Projects registered under the Rajasthan Solar Energy Policy, 2014 in the period of three years prior to the date of commencement of this Policy, shall be deemed to be registered under this Policy with the same registration number allotted earlier, and, the power producers of such projects shall have to apply for in-principle clearance within 3 years from the date of original registration or within 1 year from the date of commencement of this Policy whichever is later, failing which the registration shall be deemed to be cancelled.
23. The installation of Solar Power Plants not registered with RREC and without prior approval of competent authority as per policy provisions will be liable to be disconnected from the Grid. The developer/power producer will be required to submit certificate of registration of project with RREC to the Sub-Registrar or any other officer authorized by the Government for the registration of sale/lease deed of the land.
24. No registration will be required for Solar Power projects connected to Low Tension grid under Net/Gross Metering Scheme.
25. Developer/Power Producer can transfer its registered capacity or part thereof to its ‘holding’, ‘subsidiary’, ‘fellow subsidiary’ or ‘ultimate holding’ company with the prior approval of RREC on payment of an amount equal to 50% of the Registration Charge. However, the provisions of clause 14.5[9] & 14.6[10] shall be applicable to the transferee.

Allotment of land:

26. Government land will be allotted to Solar Park /Solar Power Project as per the provisions of Rajasthan Land Revenue (Allotment of land for setting up of Power Plant based on Renewable Energy Sources) Rules, 2007, as amended from time to time. Solar Power Park Developer shall be allowed to sub-lease the allotted land as per the aforesaid rules.

27. RREC will recommend, on case to case basis, to the concerned District Collector for allotment of government land only on submission of cash security deposit of INR. 5 Lac per MW by demand draft/RTGS in favour of RREC, Jaipur. The security deposit will be refunded to the developer in proportion to the commissioned capacity of the project on written request of applicant. The security deposit shall be forfeited in case the allotted land is not used within the specified period as per allotment rules. If land is not allotted, security deposit will be refunded on the written request of the applicant.

28. For setting up of Solar Power Plants based on different technologies, maximum land area which can be allotted to the Developer/Solar Power Producer will be as under:

For the solar power projects with storage system, additional land will be allotted as per the rules prescribed by the Revenue Department, GoR.

Re: Incentives/ facilities available to Solar Power Projects:

29. Transmission and Wheeling Charges: For Solar Power Projects set up for captive use/third party sale within State after the commencement of this policy and up to March 2023 or for a capacity of 500 MW (Solar, Wind & Wind-Solar Hybrid, with or without storage, taken together) whichever is earlier, the transmission and wheeling charges will be levied as under:-

• For Solar Power Project set up outside the premises of consumer of Rajasthan and Solar Power Projects set up for sale of power within State through open access:- @ 50 % of normal transmission and wheeling charges for a period of 7 years from date of commissioning of the project.
• For Solar Power Project with Storage Systems for Captive use/Third Party Sale:- @ 25 % of normal transmission and wheeling charges for a period of 7 years from date of commissioning of the project.
• For Solar Power Project set up by charging station service providers for captive use:- @ 100 % exemption in normal transmission and wheeling charges for a period of 10 years from date of establishing of Electric Vehicle (EV) charging station.
• The above provisions will be applicable for an individual plant capacity of maximum 25 MW.

Re: Approval Mechanism

30. In-principle clearance and final approval will be granted by State Level Screening Committee (SLSC) / State Level Empowered Committee (SLEC) as the case may be. The land allottee will have to apply for in-principle clearance of the project within three months from the date of signing of lease deed of the allotted Government land. If Solar Power Producer fails to apply for in-principle clearance within the time prescribed, RREC will recommend for cancellation of allotment of Government land with the approval of SLSC.
31. Following categories of the project will be governed by the provisions of the bid document and will not require in-principle clearance from SLSC:

• Decentralized Grid Connected Solar Power Projects;
• Solar Power Projects in Rajasthan for sale of power to DISCOMs of Rajasthan;
• Solar Power Projects sanctioned under guidelines/schemes of MNRE;
• Solar Power Projects with Storage Systems for sale of power at a tariff discovered through competitive bidding to Rajasthan DISCOMs.

SLSC after evaluating criteria such as DPR, Financial capability of power producer (set out in detail @ Annexure A-1 of the Solar Energy Policy, 2019 ), availability of land, power evacuation system, documentary evidence of PPA or an undertaking in case of sale to third party through open access among such other will provide in-principle clearance for the following categories of the projects:

• Solar Power Projects for captive use;
• Grid connected Solar Power Projects for Third Party Sale;
• Solar Power Projects with Storage Systems for Captive use/Third Party Sale;
• For Solar Power Project set up by charging station service providers for captive use.

Security Deposits:

32. For the projects approved by SLSC the Developer / Power Producer will be required to deposit security amount of Rs. 10 lac / MW through Bank Guarantee / Cash within 1 month without interest and within 3 months with 9% interest. Developer / Power Producer who has submitted the project security within prescribed time period shall apply for final approval within 6 months from date of issue of in-principle clearance, failing which the in-principle clearance shall be deemed to be cancelled without any notice.

Power Purchase Agreements / Power Sale Agreement:

33. For Projects sanctioned under:

• Decentralized Grid Connected Solar Power Projects;
• Solar Power Projects in Rajasthan for sale of power to DISCOMs of Rajasthan;
• Solar Power Projects sanctioned under guidelines/schemes of MNRE;
• Solar Power Projects with Storage Systems for sale of power at a tariff discovered through competitive bidding to Rajasthan DISCOMs;

PPA / PSA will be executed as per the provisions of the Bid Document.

34. For Projects sanctioned under:

• Solar Power Projects outside the premises of consumer of Rajasthan;
• Solar Power Projects set up in the State for captive use outside Rajasthan through open access;
• Solar Power Projects set up for sale of power within State through open access;
• Solar Power Projects set up for sale of power outside State through open access/power exchange

Developer / Power Producer shall execute WBA with DISCOMs Where transmission system of RVPN is also used then power producer will execute sperate Transmission Agreement with RVPN.

35. PPA / WBA will be allowed to be assigned in part or full to other parties being subject to:

• Completion of the project and its connectivity to the grid;
• Consent of RREC & RVPN / DISCOMs and related parties;
• On payment of INR 2.00 lac per application to RREC (+ GST);
• Importantly, when financed by Financial Institute / Lender, the name of such Financial Institute / Lender may be included in the PPA on request of Developer / Power Producer.

Rajasthan Renewable Energy Development Fund (RREDF):

36. Solar Energy Policy, 2019 reasons that owing to wind and solar power being unpredictable and variable in nature, the same requires up-gradation of transmission and distribution infrastructure of the power utilities leading to increase in system level cost of the RE injected into the grid. Such increased cost has to be borne by the state utilities and the Government in various forms, mainly as expenditure for development of large power system infrastructure for grid management, other supporting infrastructure and facilitation works for the stakeholders.

37. In view of the above, RREDF will be raised in the following manner:

• In case of Solar Power Project set up in Rajasthan for sale of power to parties other than DISCOMs of Rajasthan, a contribution towards RREDF shall be made by the power producer, from the date of commissioning, as under:

39. RREDF shall be levied on the projects which will be commissioned on or after the commencement of this policy and for the entire life-cycle of the project, from the date of commissioning, however, for the projects against which bids have been submitted prior to commencement of this policy, the contribution towards RREDF shall be @ INR 1 Lac/MW/Year for entire life cycle of the project.
40. RREDF is not applicable on Solar Power Projects commissioned on or after the date of commencement of this Policy, for sale of power to DISCOMs of Rajasthan either directly or through any other Agency/Trader. However, such Projects commissioned before the date of commencement of this Policy for sale of power to DISCOMs of Rajasthan through any Agency/Trader will continue to pay the contribution towards RREDF @ INR 1 Lac/ MW /Year for the remaining life of the Project. There will be no requirement of contribution towards RREDF for the Solar Power Projects commissioned on or after the date of commencement of this Policy for captive consumption within State.

40. Solar Power Producer shall deposit the contribution towards RREDF by April 30 in every financial year without interest and up to 30th June with interest @ 9% per annum. If it is not deposited up to June 30, then RVPN/DISCOM or any other Central/State Govt. entity will take suitable action, such as but not limited to recovery of dues from the power bill of the Power Producer or disconnection from Grid till the deposition of dues with interest, on recommendation of RREC.

Time frame for completion of the Project:

41. The time schedule for completion of Solar Power Projects under Decentralized Grid Connected Solar Power Projects, Solar Power Projects in Rajasthan for sale of power to DISCOMs of Rajasthan, Solar Power Projects sanctioned under guidelines/schemes of MNRE and Solar Power Projects with Storage Systems for sale of power at a tariff discovered through competitive bidding to Rajasthan DISCOMs will be governed by provisions of bid document and Power Purchase Agreement.

42. The time schedule for completion for the Solar Power Projects, sanctioned under Solar Power Projects for captive use, Grid connected Solar Power Projects for Third Party Sale, Solar Power Projects with Storage Systems for Captive use/Third Party Sale and for Solar Power Project set up by charging station service providers for captive use will be as under:

Provided that extension in time schedule may be granted by RREC on case to case basis                after depositing penalty amount along with applicable GST as under:

In case of delays beyond 15 months SLEC on its satisfaction, regarding commissioning     of the project, may provide further extension by imposing a penalty @ INR 2,000 per day     per MW for each day beyond the period of 15 months, this penalty for each day of delay     would be over and above the penalty of INR 2,00,000 per MW for the delay up to 15 months.

Manufacturing of Solar Energy Equipment:

43. In order to promote manufacturing solar energy equipment in the State, certain benefits in the form of concessions have been offered including land allotment at 50% concessional rate, exemption of 100% stamp duty, full exemption in electricity duty for 10 years, investment subsidy in SGST among other such concessions.

Development of Power Evacuation System in Renewable Energy Potential Area:

[1] “Net Metering” means the methodology under which electricity generated by the Rooftop/ Ground mounted Solar PV System set up in the premises of a consumer under the CAPEX/ RESCO mode is primarily for self-consumption, and the surplus generated electricity, if any, is delivered to the distribution licensee which will be off-set against the electricity supplied by the distribution licensee to the consumer during the billing cycle.

[2] “RESCO” means the methodology in which entire investment is to be incurred by a company/individual other than the consumer for setting up of the solar power project in the consumer premises and the consumer pays for the electricity generated from such solar power project at mutually agreed tariff to such investor company/ individual.

[3] Gross Metering means methodology under which the entire electricity generated by the Rooftop/ Ground mounted Solar PV System set up in the premises of the consumer is delivered to the distribution system of the Licensee.

[4]As per Clause 16.3, Banking of energy at the drawl end within the State shall be permitted for the Captive Consumption and 3rd Party Sale on yearly basis. Banking charges shall be adjusted in kind @ 10 % of the energy delivered at the point of drawl. The banking year shall be from April to March. However, drawl of banked energy will not be allowed during peak hours as determined by DISCOMs. The unutilized banked energy at the end of year shall lapse.

[5]  As per Clause 16.4, The electricity consumed by the Power Producer for captive use within state under clause 7.1, 10.3.1, 10.3.2, 11.4 & 13(iv) will be exempted from payment of Electricity Duty for 7 years from COD.

[6] As stated in Para 28

[7] Clause 22 provisions Rajasthan Renewable Energy Development Fund (RREDF) and the contribution to be made by the solar power generator towards this fund in case of sale of power to parties other than Rajasthan DISCOMs. The same has been explained in the latter part of this summary.

[8] The GST and other charges, as applicable, shall be payable in addition to the registration charge. Registration will not confer any right on the Solar Power Producer and will not create any obligation on the part of RREC.