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Kerala Solar Policy - 2013

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Nodal Agency

Agency for Non-Conventional Energy and Rural Technology (ANERT)

Applicable Technologies

Solar PV and thermal, canal-top solar PV, floating solar PV, rooftop solar

Targets under Policy

Capacity addition of 500 MW by 2017 and 2500 MW by 2030

Procurement Policy

KSEB will have first right of refusal for power from plants established on private lands/premises, except for self/captive use. Sale of power to KSEB shall be at KSERC decided tariff or at the pooled cost of the power purchase of the utility or net metering

Incentives Amount

  • No open access charges for wheeling power within the state
  • Wheeling charges and T&D losses will not be applicable to captive generators within the state
  • Conditional Banking facility shall be available to captive generators after considering system constraints.

Eligibility Conditions

.Not available

Registration Fees

Not available

Tax Exemptions

The energy generated from the plants under this policy shall be fully exempted from the Electricity duty. 

Evacuation Arrangement

Necessary evacuation facility by KSEB beyond pooling station for 100 MW projects or less. For higher capacity plants, evacuation facilities by KSEB  on deposit work basis.




Supply side Interventions

  • Installation of off-grid rooftop systems at demand points consumer premises like solar inverter installations, solar powered cellular towers, display boards, etc.
  • Conversion of existing inverter installations to solar power by providing suitable incentive schemes.
  • Off-site generation on canals, reservoirs (floatovoltaic), waste lands, quarries, etc.
  • Off shore generating plants - primarily solar-thermal systems.
  • Replacement of diesel generators with off-grid solar systems
  • Programme for developing pumped storage system as part of Solar Policy for solar electricity in the grid.
  • Manufacturing base with public sector enterprises like Keltron, to increase employment opportunities.

Promotion of Solar Thermal Collectors

Solar Water Heating Systems –Promotion ofmandatory solar water heating systems in the following categories:

  • Industrial buildings using hot water, all hospitals/nursing homes, hotels, resorts, motels, banquet halls, catering units and industrial canteens, etc.

  •  Individual residential buildings with area of 3000 sq feet and above, housing complexes and societies.

  • Solar water heaters of 100 litres and 500W solar PV systems in all new domestic buildings with floor area of 2000 sq.ft. to 3000 sq.ft.Solar water heaters of 100 litres and at least 1000W solar PV systemsin buildings above 3000 sq.ft..

  • Police/paramilitary barracks, jails, private/government guest houses, govt. tourist hotels, inspection bungalows, circuit houses and retiring rooms of railways.

  • The use of solar water heating systems shall be made mandatory in star hotels, hospitals, residential complexes, with more than 50 kVA total connected load.

Solar Steam Systems –Promotion ofsolar steam systems for wider applications such as:

  •  Community cooking in residential institutions/ industrial mess/Hotels /Barracks/ Mid-day meal program/Hospitals etc.

  • Industrial application of steam in process industries such as Textile/Food industry, laundries etc.

Industrial Applications – State will promote use of the above systems for industrial applications.

  • Process requirements of hot water, steam, pre-heating applications in industries, drying applications, laundry units.

  • Solar steam cooking applications in industrial mess/hotels etc.

Solar installations in Public buildings

  • All public buildings shall install grid-connected systems using appropriate technologies.
  • Instead of EPC mode, a design, build, operate and transfer scheme with annuity payments shall be preferred.
  • A panel of implementing agencies and pro-rata costs per kilo watt shall be prepared and each office/department can choose a developer for implementing this scheme.



  • For grid - connected systems in non-government buildings/premises the incentives shall be on net metering basis, feed-in tariff and REC mechanism.
  • For domestic consumers, cluster-wise installations will be given incentives on conditional basis for adopting solar installations.
  •  For floatovoltaic and public place installations a wider community ownership model with direct financial stake by the public shall be encouraged.
  • For off-shore generating plants, projects shall be structured on the basis of competitive bidding in IPP mode.
  • A tariff incentive for non-solar consumers opting for solar generation subject to prefixed levels of usage.
  • For peoples representatives/panchayats promoting solar installations and street light optimization.
  • For those converting existing inverter installations to solar-based ones.
  • Open Access - No open access charges for solar projects wheeling power within the state.
  • Wheeling charges and T&D losses will not be applicable to captive solar generators within the state.
  • Energy generated from solar plants shall be fully exempted from the electricity duty.
  • Conditional banking facility available to captive generators after considering system constraints.

Solar Procurement Obligation

  • Solar Procurement Obligation (SPO) mandated for commercial consumers with more than 20kVA connected load, LT Industrial with more than 50kVA connected load and for all HT & EHT consumers.
  •  All HT/EHT consumers to procure 0.25% of their energy consumed through SPO till March 2015 with 10% increase annually.
  • Commercial and Industrial LT consumers to procure as per above mentioned criteria from April 2015.
  • The same will be applicable todomestic consumers using over 500 units/month, at a later stage.
  • Residential flats/ apartments should use 5% of the energy for common amenities from solar plants.

Provision for Policy Review

As and when need arises 



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