To encourage small and medium scale solar projects on residential, commercial and industrial premises, Gujarat government has announced a new solar power policy. Under the new policy, the state government has scrapped the condition that the installed capacity of a solar project needs to be 50 percent of the sanction load or contract demand.

The new policy will enable an individual or industry to produce solar power in their premises as per their requirements and without any limit on the capacity, Chief Minister Vijay Rupani said, while unveiling the “Gujarat Solar Power Policy 2021”.

The policy will remain in effect for five years, and solar projects which come up during this period will be eligible for various benefits for a period of 25 years, a government release about the policy stated. “Under this policy, people can even give their terraces or premises to other developers on lease and earn an income on it. With no limit on the installed capacity, industries can produce more solar power and bring down their overall production cost,” Rupani said. This policy will make Made in Gujarat products more competitive globally, he said.

To encourage people to opt for solar panels, the state government has also announced that additional electricity from roof-top residential projects and captive MSME units will be purchased at Rs 2.25 per unit for a period of five years. Moreover, a group of industries can also come together to set up a captive solar project at one place and distribute power as per their share in the investment, state energy minister Saurabh Patel said.