Andhra Pradesh Solar Policy 2012

The policy shall come into operation with effect from the date of issuance (26/9/2012) and shall remain applicable till 2017.

Salient Features:

  1. Installed capacity:

It intends to promote utility grid power projects for Captive Use/ Direct Sale to third party/within the state and Utility Grid Power Projects for sale through RE (Solar) Certificate Mechanism. Also, it intends to promote the Off-Grid Solar applications to meet the power needs on Stand-alone basis.

  1. Wheeling & Transmission charges:

Producer will bear the wheeling and transmission losses as per actual.

  1. Banking:

Banking of 100% of energy shall be permitted for one year from the date of banking. The settlement of banked energy will be done on monthly basis. However, banked units cannot be consumed/redeemed from February to June and also during TOD hours as amended from time to time. Developer will be required to pay 2% of the banked energy towards banking charges.

  1. OA charges:

Intra-state Open Access clearance for the whole tenure of the project or 25 years whichever is earlier will be granted within 15 working days of application to both the generator and consumer irrespective of voltage level.

  1. Additional Incentives:

To promote investments in AP, the following incentives would be applicable till June 2014. These incentives will be in force for a period of seven years from the date of implementation.

  • No wheeling and transmission charges will be applicable for sale of electricity within the state from the Solar Power Projects, to the desired location/s for captive use/third party sale through the grid. However, producer has to bear (As per APERC regulation) the wheeling and transmission losses as per actual in case of captive/open access sale outside the state.
  • No Cross Subsidy charges for third party sale within the state and for captive use.
  • Exemption from electricity duty for captive consumption and third party sale within the state.
  • Refund of VAT ,paid in AP only, by Commercial Dept for all the good used for Solar developers
  • Refund of Stamp duty and registration charges paid for land purchase

Projects claiming above benefits can claim REC benefits provided they are in line with the APERC/CERC regulations.

  1. Evacuation infrastructure:

The evacuation line from interconnection point to the grid substation shall be laid by the APTRANSCO or DISCOM at the cost of the developer.

  1. Land:

It is the responsibility of the Project Developer to acquire the land required for the project.

  1. Reactive Energy charges:

Reactive charges applicable to the project developer as per APERC regulation.

Source: MNRE

The detailed policy document and amendment can be downloaded from the following link: (Amendment)


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