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Jharkhand Solar Policy - 2015

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Nodal Agency

Jharkhand Renewable Energy Development Agency (JREDA)

Applicable Technologies

Solar PV, solar off-grid systems, solar thermal, canal-top solar PV, solar cooling, solar dryers

Targets under Policy

2650 MW by 2020








Solar PV*







Rooftop solar PV**







Solar thermal







*Min size of solar PV power plant shall be 1 MW

**Min size of rooftop solar PV plant shall be 1 kW

Must Run Status

Injection from SPPs shall be considered deemed scheduled

Eligibility Conditions

Registered companies/firms/societies, govt. entities, consumers of DISCOM(s) and individuals

Tax Exemptions

Equipments purchased for solar power projects shall be exempted from payment of VAT.

Evacuation Arrangement

  • State Transco/DISCOM shall bear the cost of development of evacuation facilities from the project’s generator switchyard to the interconnection point up to a maximum length of 10 KM.
  • State government shall reimbursesuch cost to the concerned Transco/DISCOM provided the project capacity is 2 MW or more.
  • Beyond 10 km the cost shall be borne by the project developer.





Distribution losses

Shall be exempted for projects injecting at 33kV or below irrespective of voltage level at delivery point


  • Exemption from payment of electricity duty for 10 years from date of commissioning.
  • Deemed Industry status – For all solar power plants, and sanctions and disbursement of incentives/subsidy shall be as per Jharkhand Industrial Policy.
  • Open access – Intra-state open access is granted for 25 years or tenure of the plant, whichever is earlier.
  • Exemption from payment of conversion charges - Residential solar rooftop consumers opting to sell electricity to grid shall be exempted from conversion of property tax to commercial tax.
  • Exemption from VAT - For all equipment.
  • Wheeling charges - T&D charges are applicable for wheeling within the state. State govt. shall provide a 4% grant for wheeling in terms of energy injected.
  • Cross subsidy surcharge - Exempted for third party sale within the state.
  • Banking - Is permitted for captive/OA/scheduled consumers during all months of a year. Charges are 2% of energy delivered at the point of drawal. Drawal of banked energy shall not be allowed during 5 months - 1st April to 30th June and 1st February to 31st March, of each financial year. For drawals during peak hours of ToD, charges shall be applicable as per Retail Supply Tariff Order. Energy injected into grid from date of synchronization to commercial operation date will be deemed as energy banking. The unutilized energy shall be considered as deemed purchase by DISCOM at pooled power purchase cost as determined by JSERC.
  • Contract Demand Reduction - Scheduled consumers can avail reduction in contract demand for a period of 5 years from date of commissioning.
  • Third party sale - Will be allowed within and outside the state as per JSERC regulations, amended from time-to-time.
  • Clean Development Mechanisms- CDM benefits to the project developers/investors shall be as per the provisions of JSERC.
  • Land - State govt. shall identify land for development on competitive bidding basis, and shall introduce land bank scheme to facilitate such projects. 100% exemption from stamp duty on purchase of private land.
  • Completion & commissioning of projects - If the project is completed within the scheduled period, it will be exempted from electricity duty and banking charges for the project’s life or 25 years, whichever is earlier. 

Security Deposit for OA, REC

Developer shall deposit, as bank guarantee, a security amount of Rs. 30 lakh/MW, within one month of issue of approval from JREDA.

Performance bank guarantee

Developers availing policy benefits shall submit bank guarantee @Rs.5 lakhs/MW to JREDA, valid for a period of 24 months for solar PV projects, and 40 months for solar thermal projects. 

Tax/Duty exemptions

  • Electricity duty shall be exempted for 10 years from date of commissioning for projects set up within the state.
  •  Incentives available to industrial units shall be available to solar power plant developers.
  • The government of Jharkhand will provide a grant of 4% of wheeling charges in terms of energy injected and balance wheeling charges shall be borne by project developer.
  •  Cross subsidy surcharge shall be exempted for projects set up within state.
  •  Banking of 100% energy shall be permitted.

Provision for policy review

Mid-term review of policy after a period of two years or as and when need arises. 



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