In order to promote solar power as an additional and alternative source of energy, Gujarat government today announced a comprehensive 'Solar Power Policy', which offers slew of sops and incentives to solar power generators (SPGs).

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Eligible solar power generators will also be able to sell the power generated by them to the apex electricity of the company, Gujarat Urja Vikas Nigam Ltd (GUVNL) or distribution licensees under a power purchase agreement. The newly announced policy, which is operative till the year 2014, has also specified tarrifs for sale of power to GUVNL or distribution licensees. The solar power can be sold to state licensees at a levelised fixed rate per unit for 25 years. The policy has fixed various tarrifs for sale of power generated from solar projects. The tarrif for Photovoltaic projects commissioned before 31 December 2010 has been pegged at Rs. 13 per kWh. The rate is applicable for the first 12 years and it will be Rs. 3 per kWh for the period from 13th year to 25th year.

In case of thermal projects, the tarrif rate has been fixed at Rs. 10 per kWh for first 12 years and Rs. 3 for the period from 13th to 25th year. For the projects commissioned before 31 March 2014, the tarrif specified in the policy for Photovoltaic projects and thermal projects for the first 12 years is Rs. 12 per kWh and Rs. 10 per kWh respectively. Rate of Rs. 3 per kWh is fixed for photovoltaic and thermal projects each for the 13th to 25th year.

"A maximum of 500 MW SPG will be allowed for installation under the operative period of the policy," the policy states. The minimum project capacity of any SPG in case of Solar Photovoltaic (SPV) and Solar Thermal (ST) is 5 MW each. The SPGs will be eligible for selling power for 25 years.

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