Comparative analysis of solar policy of various states of India
Student name: Mr Chandan Kumar
Guide: Ms Usha Rao
Year of completion: 2013
Host Organisation: Enzen Global Solutions Pvt. Ltd.
Supervisor (Host Organisation): Ms Uma Rajarathnam
Abstract: The fate of solar power in India lies on a successful solar policy. Harnessing solar energy for
electricity generation is new experience for India, lot of opportunities and issues are yet to be
availed and addressed. In view of this, many experiments are going on at policy level to
make solar industry self-sustained and progressive. This creates ample opportunities as well
as hurdles for a project developer to do business under a particular solar policy. Improper
understanding and knowledge of solar policy of any state can land up a project developer into
heavy loss while doing solar business in a particular state.
This report is done to overcome this problem, and to suggest the primary issues and
opportunities in solar policy of nine states of India to a project developer and also tells the
solar policy of which state is best suited for a project developer for doing business in solar
power sector. In this report, solar policy of India and its nine states is closely studied along
with installed solar power and current developments in solar power generation. Various
reports based on solar policy have been studied and solar power developments in the past and
present time of these states were tracked and studied.
The result of this report discusses the key issues in solar policy of all the nine states which a
project developer must foresee before investing into a particular state. Profit is the main
motive of a project developer, so bankability, strength of power purchase agreement and
payment security is the key issue for a successful solar policy.
It has been concluded in the report that Gujarat’s solar policy is the most business friendly
one and offers many incentives, good profit and statutory support to a project developer.
Since, continuous amendments and modifications are going on to make solar policy more and
more innovative, it is recommended for a project developer to be alert and track the changes
in the solar policy of every state before investing into that state. As every state governments
are also trying to control their money outflow in the form of subsidy, there is the chance that
more risks and responsibilities are laid upon project developers in the policy modifications.
Hence, a project developer must check and proceed for investment in a particular state.
Keywords: Bankability, Power Purchase Agreement, Incentives
