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Gujrat Solar Power Policy 2021 announced

The Gujarat government on Tuesday launched a new solar policy to ensure clean energy.

The new policy, according to the government, will cut down dependency on conventional coal-based generation & will help MSME industry in its production cost.



The new solar power policy will be valid for five years i.e. up to December 2025 and benefits of the solar projects set up under this policy can be availed for a project life of 25 years.

Any person or developer or consumer can set up solar projects without any capacity ceiling while the existing ceiling of 50% sanctioned load or contracted demand has been removed".

Consumers can set up solar projects on their roof or premises or can give their roof or premises on lease to third party for generation and consumption of power in the same premises.

Moreover, a group of consumers can set up solar projects for self-consumption as a collective ownership project and can consume the generated energy in the ratio of their ownership.


Under this policy, Residential Consumers, Industrial & Commercial consumers for captive usage, Project by third party to sell power to industrial & commercial consumers, Sale of Power to DISCOMs, will be able to set up their own solar projects.

  • Any person / developer / consumer can set up solar projects as per his requirement without any capacity ceiling

  • Existing ceiling of 50% of sanctioned load / contracted demand for setting up solar project is removed

  • Consumers can set up solar projects on their roof / premises or can give their roof / premises on lease to third party for generation and consumption of power in same premises

  • A group of consumers can set up solar projects for self consumption as collective ownership project and consume the generated solar energy in the ratio of ownership

  • Security Deposit to be furnished by developer to DISCOMs for PPA has been reduced from Rs 25 lakh per MW to Rs 5 Lakh per MW.


The state will purchase surplus energy after set off against their consumption.

  • For Residential Consumers (Surya Gujarat Yojana) and MSMEs (manufacturing) for captive usage, DISCOMs will purchase surplus energy after set off against their consumption at Rs 2.25 per unit for initial 5 years and thereafter at 75% of latest tariff discovered and contracted by GUVNL through competitive bidding process for non-park based solar projects in preceding 6 months which shall remain fixed for remaining life of the project.

  • For all other consumers, it will be purchased at 75% of latest tariff discovered and contracted by GUVNL through competitive bidding process for non-park based solar projects in preceding 6 months which shall remain fixed for the project life of 25 years.


Banking :

As far as banking charges are concerned

  • for HT consumers and LT (demand-based) consumers, it will be Rs 1.50 per unit for their solar energy consumption while..

  • For all other consumers and MSME units it will Rs. 1.10 per unit.

  • No banking charges shall be applicable to Residential Consumers and Govt. Buildings.

  • Cross Subsidy Surcharge (CSS) and Additional Surcharge (AS) will not be applicable in case of self-consumption (captive).

  • CSS & AS as applicable to normal open access consumers will remain applicable in case of projects for third party sale.


Solar Projects set up under this policy may have estimated savings to consumers as follows:


* Residential Consumer - Rs. 1.77 – 3.78 per unit

* Industrial and Commercial (Captive) - Rs. 2.92 – 4.31 per unit

* Industrial and Commercial (Third Party Sale) - Rs. 0.91 – 2.30 per unit.

Source:- TOI

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