Support, Grow, Contribute
All About Renewables

Renewable Energy

Find latest News, Industry Updates, Markets, Finance, Policies and Regulations, Tenders

Andhra Pradesh Solar Power Policy – 2018

  • / /



Nodal Agency

The New and Renewable Energy Development Corporation of Andhra Pradesh.

Policy Period               

  • 4th January 2019 to 4th January 2024 or until a new solar policy is announced, whichever is earlier.
  • Solar power projects commissioned from 2019-24 shall be eligible for incentives declared under this policy for a period of 10 years unless the period is specifically mentioned.

Eligible Entities

  • All registered companies, government entities, partnership companies/firms, individuals and consumers of APDISCOM(s) will be eligible for setting up of solar power projects within the state for sale of electricity/captive use, in accordance with the Electricity Act – 2003, as amended from time to time.


Types of Solar Power Plants and Target Capacities





Through competitive bidding conducted by state DISCOMs

a) 5 MW and above.

b) Up to 5 MW.


Captive plants or third party sale

Not mentioned.


Solar Parks

4000 MW.


Solar Rooftop Projects - Gross/Net Metering

Up to 1000 kWp at a single location.


Solar Pump sets

Not mentioned.


  • Exemption of transmission and distribution charges only for connectivity to the nearest Central Transmission Utility (CTU) via State Transmission Utility (STU).
  • Banking of 100% of energy shall be permitted during all 12 months of the year, based on the consent of APTRANSCO/APDISCOMs.
  • Intra-state open access clearance for the whole tenure of the project or 25 years, whichever is earlier, will be granted as per the APERC Regulations.
  • All projects, including in-house or co-located solar projects with the above incentives, will be eligible for REC benefits.
  • Eligible Industry Status for Solar PV projects under the schemes administered by the Industries Department including incentives.
  • Provision of deemed PPP status for projects coming up under category of Sale of Power to APDISCOM.
  • Deemed non-agricultural (NA) status for the land where solar power projects will be accorded, on payment of applicable statutory fees.
  • ‘MUST-RUN’ status for solar power projects.
  • Solar PV power projects will be exempted from any NOC/consent under pollution control laws from AP Pollution Control Board.

Energy Banking

  • The banking year shall be from April to March and banking charges will be @5% of the energy delivered at the point of drawal.
  • The unutilized banked energy shall be considered as deemed purchase by DISCOMs at 50% of APPC, as determined by APERC for the applicable year with payment at 10% of total banked energy in the year.




Solar Parks

  • To be developed in private or public-private partnership mode.
  • All necessary amenities related to power projects will be made available in solar parks.


Application Fees of PV Projects

Capacity in Units

Fees in Rs.[A1] 

Up to 5 kWp


5 kWp to 100 kWp


100 kWp to 1000 kWp


Per MW


  • Additional Rs.25 per kW for single window support from Nodal Agency.
  • Solar Parks developed by the government are exempted from such fees.


  • A minimum total solar power capacity addition of 5,000 MW in the next five years.
  • To promote distributed generation.
  • To develop solar park(s) with the necessary utility infrastructure facilities.
  • To deploy solar powered agricultural pump sets.
  • To promote local manufacturing facilities.

for Evacuation

  • The eligible developer shall bear the entire cost of construction of power evacuation facilities from the project up to the interconnection point/DISCOM/Transco substation.

Land Provision under [A2] 

  • To facilitate faster execution of projects.
  • NREDCAP will allow the developer to start the construction after necessary undertakings including lease agreements.
  • NREDCAP will pay the land cost as decided to the revenue authorities @10% of the market value for a period of 10 years and will collect lease rentals for 25 years @10% of the land value with a 10% increase in every 5 year block period from the a project developer from the date of commissioning of the project.

Monitoring Committee

  • A high level committee will be created under the chairmanship of the Principal Secretary, Energy Department.
  • The role of the Committee will be:
    • Removing difficulties
    • Addressing relevant issues
    • Interpreting Policy provisions


Solar Manufacturing

Promoting solar manufacturing so as to develop a solar eco-system and create job potential in the state. The following incentives shall be applicable to new manufacturing facilities and equipment, and ancillaries related to solar power projects only:

  • Priority allotment of government land for solar parks on long term lease basis.
  • Exemption from electricity duty for a period of ten (10) years.
  • Incentives, as applicable, as per the prevailing industrial promotional policies of the GoAP, subject to provision in a separate budget by the Energy Department for the same.
  • Preference for off-take of power, PE connectivity and energy banking facility for the projects developed by the manufacturers.




About Portal

'All About Renewables' aims to bring about a change in the way we 'look and search' for data on renewables today, by providing access to the latest developments in the renewable energy sector (specifically renewable electricity), along with cross-linkages to the conventional energy sector, all on one single platform... Read More


Plot No.44, Hindustan Estates,
Kalyani Nagar, Pune 411 006, India

+91 20 26613855
+91 20 26613832