Harnessing Solar Power: A Comprehensive Overview of Haryana’s Draft Solar Policy

Haryana has released its Draft Solar Policy 2023, signifying a significant shift in the state’s renewable energy environment. This policy is a comprehensive roadmap that intends to install an outstanding 6,000 Megawatts (“MW”) of renewable energy capacity by 2030.

Key Changes

The draft policy[1] focuses on three key areas: rooftop solar, ground-mounted solar, and irrigation solarization. By 2030, the policy calls for 1,600 MW of rooftop solar, 3,200 MW of ground-mounted solar plants, and an additional 1,200 MW of irrigation pump solarization.

Some of the key features include:

Replacement of the 2016 Solar Power Policy

• The Draft Solar Policy departs from the previous Haryana Solar Power Policy enacted in 2016.
• It not only raises the bar but also makes subtle modifications to its approach to solar projects.
• Unlike its predecessor, this draft policy addresses battery storage directly and supports the concept of hybrid projects that combine solar with other renewable resources.

Incentives for Battery Storage and Hybrid Projects

• The provision in the Draft policy for storage system subsidies for utility-scale solar power projects selling electricity to distribution companies is notable.
• This step encourages the incorporation of cutting-edge storage technologies as well.

Reservations and Limitations

• The policy reserves 20% of the overall capacity of ground-mounted MW scale solar power facilities for small generators with capacities of up to 2 MW.
• Furthermore, it permits entities to build solar power facilities for self-consumption without regard to location, as long as the benefits are obtained through open access.

Solar-Powered EV Charging and Power Evacuation Framework

• Under the policy, EV charging infrastructure will be established, incorporating rooftop solar facilities for public charging stations.
• Net-metering connections, monitored through registration with the Haryana Renewable Energy Development Agency or a national portal, will be provided by DISCOMs.
• For power evacuation, the state transmission utility or DISCOM will cover EHV/HV transmission line costs up to 10 km from the interconnection point under a power purchase agreement.
• Beyond 10 km, costs are shared between the power producer and DISCOM. Solar projects near canals receive free transmission lines, emphasizing Haryana’s renewable purchase obligation.
• Independent power producers, for merchant sale or captive use, bear associated evacuation costs, governed by the terms in the PPAs.

Rooftop Solar Flexibility

• Haryana’s proposed policy allows for rooftop solar adoption via both CAPEX and RESCO modalities.
• It enables qualifying clients to install rooftop solar systems as long as the total capacity does not exceed the goal capacity.
• This is in contrast to the former policy, which imposed a cap on grid-connected solar rooftop systems.
• The maximum cumulative capacity has been increased to 500 MW, encouraging greater uptake and utilisation of rooftop solar systems.

Virtual Metering, Group Virtual Metering, and Exemptions

• With the implementation of virtual metering and group virtual metering for rooftop systems, the draft policy supports innovation.
• It also provides exemptions from wheeling, transmission, cross-subsidy, and additional open access taxes if the energy is consumed on-site. This not only simplifies operations but also provides economic incentives for environmentally friendly energy practices.

Banking Facilities and Exemptions

• Individuals or businesses with solar captive projects have the option to store surplus energy, up to their contracted demand, for self-consumption by paying associated banking charges.
• These fees not only account for transmission and distribution losses (technical loss) but also enable them to leverage open access opportunities on the transmission or distribution networks of the licensees.
• To facilitate this process, a banking agreement must be established with the relevant DISCOMs.

Utility-Scale Solar Projects

• Under the draft policy, Utility-scale projects are not subject to changes in land use approval from the Town and Country Planning Department.
• Furthermore, these projects enjoy exemptions from External Development Charges (“EDC”), scrutiny fees, and infrastructure development charges, unless a special service requires EDC charges, which would be applied proportionally.
• Upon the expiration of the power purchase agreement period or the cessation of plant operations on the land, the land will revert to its original state as outlined in the master plan of the area or city at the project’s installation.
• A 100% exemption on stamp duty for land is granted. However, if the developer fails to implement or abandons the project before its intended lifespan, excluding force majeure conditions, the exempted stamp duty must be paid.
• Failure to comply will result in the cancellation of the land purchase deed.

Conclusion

Haryana’s Draft Solar Policy is a visionary, inclusive, and ambitious initiative that places the state as a leader in renewable energy adoption. Haryana lays the groundwork for a cleaner, more sustainable energy future by aiming for a 6 GW capacity by 2030 and embracing innovative techniques and incentives.

[1] https://cdnbbsr.s3waas.gov.in/s3f80ff32e08a25270b5f252ce39522f72/uploads/2023/11/20231107830401647.pdf