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Gujarat Government Announces New Solar Power Policy

Gujarat Chief Minister Vijay Rupani unveiled the “Gujarat Solar Power Policy 2021”.


The Gujarat authorities on Tuesday introduced a brand new solar energy coverage comprising provisions to encourage small and medium scale photo voltaic initiatives on residential, business and industrial premises.

Under the brand new coverage, the state authorities has scrapped the situation that the put in capability of a photo voltaic undertaking must be 50 per cent of the sanction load or contract demand.

Now, a person or trade can produce solar energy of their premises as per their necessities and with none restrict on the capability, Chief Minister Vijay Rupani mentioned, whereas unveiling the “Gujarat Solar Power Policy 2021”.

The coverage will stay in impact for 5 years and photo voltaic initiatives, which come up throughout this era shall be eligible for numerous advantages for a interval of 25 years, a authorities launch in regards to the coverage acknowledged.

“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,” Mr Rupani mentioned.

This coverage will make Made in Gujarat merchandise extra aggressive globally, he mentioned.


To encourage individuals to go for photo voltaic panels, the state authorities has additionally introduced that further electrical energy from roof-top residential initiatives and captive MSME models shall be bought at Rs 2.25 per unit for a interval of 5 years, it was acknowledged.

Moreover, a bunch of industries can even come collectively to arrange a captive photo voltaic undertaking at one place and distribute energy as per their share within the funding, state power minister Saurabh Patel mentioned.

At current, photo voltaic undertaking builders must pay a safety deposit of Rs 25 lakh for every megawatt of put in capability to distribution firms underneath the Power Purchase Agreement, he mentioned.

Under the brand new coverage, the deposit quantity has been slashed to simply Rs 5 lakhs for a megawatt, the minister added.

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