Growing concerns of global warming and climate change require emphasis on clean and green energy. Government of Uttar Pradesh recognizes the current and potential impact of Climate Change and is committed to encourage the promotion of clean energy sources.
Government of Uttar Pradesh has announced Uttar Pradesh Solar Energy Policy 2022 in November 2022 with the objective to reduce and minimize carbon emission in the environment and to promote the electricity production by non-conventional sources in the State. The Uttar Pradesh Solar Energy Policy 2022 aims to achieve a target of 22,000 MW Solar Power Projects by 2026-27 by way of commissioning Utility Scale Solar Power generating Projects, Ultra Mega Solar Parks, Solar Rooftop Power Plants, Installation of distributed Solar systems and development of Model Solar Cities, etc.
Uttar Pradesh Solar Energy Policy 2022 provides various subsidies, incentives and state supports to create a conducive environment for investment in the field of solar energy generation and storage. They include:
Utility Scale Solar Power Projects
- Utility scale solar power projects will be developed under Tariff based competitive bidding.
- Capital Subsidy @ Rs 2.50 Crore per MW on Utility Scale Solar Power Projects and Stand-Alone Battery Storage System (energised with Solar Power only) of5 MW or above set up with four hours battery storage systems.
- State will bear the cost for construction of transmission line (need based) for the Solar Power projects which are set up in Bundelkhand and Purvanchal (eastern) Region of the State upto a maximum of 20 kms depending upon the Solar Power Project Capacity as detailed below:
- Upto a maximum of 10 km of transmission line for the projects of 05 to 10 MW
- Upto a maximum of 15 km of transmission line for the projects of more than 10 upto 50 MW
- Upto a maximum of 20 km of transmission line for the projects of more than 50 MW
- 100% waiver of Wheeling and Transmission Charges (Intra State) in case power is sold to Uttar Pradesh Power Corporation Ltd (UPPCL) and 50% waiver if power is sold to third party or for captive use.
- 100% waiver of Wheeling and Transmission Charges and cross subsidy surcharge on State Transmission Network in case power is sold Interstate
- Upto 100% Energy Banking Facility for 25 years or project life whichever is earlier.
- Exemption of Electricity Duty for 10 years in case power is sold to electricity distribution companies or Third Party or used for Captive Consumption
- 100% Exemption for Stamp Duty on land procurement byway of purchase or lease for setting up Solar Park /SoIar Power Project.
- Deemed exemption from Land ceiling and change in land use.
- Deemed Pollution No Objection Certificate .
- Environmental clearance not required for setting up Solar Power Projects.
- Government revenue land will be made available on lease for thirty years to Public Sector Units/Government joint ventures @ Rs1/per acre per annum and on lease for thirty years to Private entities @ Rs 15000/per acre per annum for setting up Solar Parks/Solar Projects.
Grid Connected Rooftop Solar Power Plant
Solar Rooftop Power Plants Residential
- Rooftop Solar Power Plants allowed to be installed under net metering mechanism.
- Subsidy of Rs. 15000/KW to the max limit of subsidy of Rs. 30000 per consumer available in addition to central financial assistance available from Government of India of Rs 14588/- per KW to the maximum of Rs94822/-.
- Grid connected Solar Power Plants of capacity up to 10 kW, exempted from the safety inspection by the State Electrical Inspector.
- No permission required from the local development authorities/local bodies on installation of Rooftop Solar System.
- Net metering provision for all governmental and educational institutions.
Solar Rooftop Power Plants Non-Residential
- Rooftop Solar Power Plants allowed to be installed under net billing mechanism.
Solarazation of On Grid Private Tube Well
- State subsidy of 70 % in addition to 30 % subsidy available from Government of India on solarisation of on grid Private tube wells owned by SC/ST, Vantangia and Mushar category farmers.
- State subsidy of 60 % in addition to 30 % subsidy available from Government of India on solarisation of on grid Private tube Wells owned by farmers of other category. Farmers to pay only 10 % beneficiaries share.
Solarazation of Segregated Agriculture Electricity Feeders
- Viability Gap Fund of Rs 50 Lakh per megawatt available in addition to Rs 1.05 Crore per megawatt subsidy available from Government of India
Development of Solar Cities
- Ayodhya, Noida city and sixteen Nagar Nigams of State will be developed as Solar Cities.
- Based on 2011 census of city incentive @ Rs 100/- per person will be available to cities for installation of solar systems.
Other Support & Flexibilities
All Plants established under this Policy will be entitled to avail incentives/subsidies available under various schemes/policies from Ministry of New and Renewable Energy(MNRE).
Nodal Agency (Single Point of Contact)
- Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) have been designated as the nodal agency for implementation of this policy and will be single point of contact.
- It will act as a single window to cater all type of solar Projects on behalf of the Government of Uttar Pradesh.
- The Nodal agency will help in approval of Solar Power Projects by facilitation of Projects for competitive bidding, Power Purchase Agreements (PPA), statutory clearances, coordination with MNRE and other central/5tateAgencies, facilitation for approval of Power evacuation Plan
- Nodal Agency will facilitate allotment of suitable land/space in control of State Government or its agencies.
- Nodal Agency will issue Registration certificate to enable the developer/vendor in coordinating with other line departments like DISCOM, Uttar Pradesh Power Transmission Corporation Ltd, District administration for land and other support.
- It will also be the nodal agency to obtain grants in aid for development of Solar Energy .It will receive support in fulfilling its commitments related to the Renewable Energy sector under the State Action Plan for Climate Change.

