The document summarizes state-level solar policies and initiatives in India. It finds that while states have set ambitious solar targets, there is uncertainty around policy stability, payment mechanisms, and ecosystem development. Key differences between states include the scale of targets, use of local content requirements, and approaches to setting feed-in tariffs. Off-grid policies provide clear subsidies but implementation has lagged intentions. Overall, the document concludes state efforts require treatment to ensure policy continuity, expert implementation, and long-term ecosystem building for the solar sector to realize its potential.

1. State of (the) Heart?
How Good are the State Initiatives & Plans for Solar
Nov 10,2011, SolarCon, Hyderabad
Narasimhan Santhanam, EAI

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3. State Policies - Raison d'être
• Sun is the same – but its shine is different
• Local control = Faster & easier implementation
• “Policy proximity” – tailored to off-grid realities

4. Getting the Best from States
…by alleviating concerns
• How serious are the state governments?
• Who’s going to pay?
• How transparent is the process?
• Will the next government pull the rug?
• Are states building ecosystems?

5. Grid Connected

6. Policy Snapshot
JNNSM Gujarat * Rajasthan Karnataka
Targets 20 GW by 2022 1 GW by 2012 & 3 GW (in 10–12 GW (in 12 350 MW by 2015 -2016
next 5 years)
years)
Timelines Phase 1(2012-13) 300 MW (Grid Connected) Phase 1: 200 MW (PV) up 126 MW by 2013 - 2014
by DEC 2011 to 2013
Phase 2(2013 -17) 40 MW per year till 2016
Phase 2: 400 MW (2013-
Phase 3(2017 -22) 2017)
Local Content Applicable for c-Si None None; But incentives None
Modules and Cells; for local mfg
Not applicable for TF
Feed-in-Tariff Reverse Bidding : Rs. 15/kWh (1st 12 years) Decided through Up to 200 MW. Reverse
Rs. 5/kWh (13th to 25th Reverse Bidding. Base Bidding with base
Round 1 -Solar PV
year) Prices: price @
Rs. 10.9 - 12.75/kWh
Rs. 15.32/kWh (Without Rs. 14.50 /kWh (max)
AD)
Rs. 13.39/kWh (with AD)
Current Status Phase 1 : 150 MW PV PPAs signed for about Allotment in progress Allotment in progress
allotted; 350 MW by end 1200 MW
of 2011
* New draft policy under consideration

7. State Policies - Common
– Fixed targets
– Phased capacity allocation
– No local content requirements
– Equal importance for both CSP and PV

8. State Policies - Differences
– Scale – Rajasthan has much higher targets
– Only Rajasthan encourages indigenous
manufacture via incentives (NOT mandates)
– Gujarat stipulates fixed tariffs and not
through reverse bidding.
– Proposed targets fluctuate, with Gujarat
being the most aggressive

9. Off-grid

10. Off-grid Status
Source: MNRE
Total Capacity Sanctioned – 40,402 kW (2010)
Total CFA Released – About Rs. 280 Crores

11. Off-grid Support
Eligibility Scale of Subsidy
Entity Capacity Subsidy Capital Subsidy
(Based on benchmarking annually)
1 Individuals 2010-11
Proposed
(2012 Onwards)*
A All applications except 1B 1 kWp With battery
Capital Subsidy Rs.90/Wp Rs. 81/Wp
storage
Pumps for irrigation and &
community Without battery
B 5 kWp Interest Subsidy Rs.70/Wp Rs. 57/Wp
storage
drinking water
Scale of Interest Subsidy
2 Non-commercial entities
100 kWp per On the amount of
A All applications except 2B project cost
site Capital Subsidy
& Soft loan @ 5% Less promoters’
250 kWp per p.a. contribution
B Mini-grids Interest Subsidy
site
Less capital subsidy
3 Industrial/Commercial entities
amount
100 kWp per
A All applications except 3 B
site Capital Subsidy
or * - 10% reduction each year subject to review of benchmark
Mini-grids for rural 250 kWp per costs
B Interest Subsidy
electrification site
Source: MNRE Source: MNRE

12. Means and...Ends
Concern Grid connected Off grid
How serious are they? Too early to say Intentions clear, execution
not yet seen
Who is going to pay? Big question! Clear
How transparent are they? Good and bad No problems
Will the next govt pull the Not sure No problems
plug?
Are states building Yes and No No
ecosystems?

13. State of the Heart
• Unstable, Treatment Required
– Put systems to guarantee policy & incentive
stability and continuity
– Align policies with RPOs
– Get experts to frame policies and for execution
– Start building ecosystems, even if gradually

14. Thank you
Narasimhan Santhanam, EAI
Mob: +91-98413-48117
narsi@eai.in , www.eai.in