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MP Solar Policy - 2012

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Nodal Agency

Madhya Pradesh UrjaVikas Nigam Ltd (MP Urja)

Applicable Technologies

Solar Projects

Industry Status

Projects will have the status of industry as per MP Industrial Promotion Policy.

Land Use Permission

For govt. land, a maximum of 3 hectares per MW is allowed.

Eligibility Conditions

All solar-energy based power project developers (solar PV/solar thermal),equipment manufacturing units and ancillaries related to solar power projects.

Registration Fees

Not available

CDM Benefits

As per the provisions specified by MPERC.

Evacuation Arrangement

Expenses for the evacuation arrangement shall be borne by the developer as per Madhya Pradesh State Grid Code, Madhya Pradesh Electricity Supply Code, 2004, amended from time to time.




Category of Solar Projects

  • Category 1: Projects selected as per competitive bidding for selling power to MP DISCOMs/MP power management companies.

  • Category 2: Projects set up for captive use or sale of power to third party, within or outside the state, or for sale of power to other states through open access.

  • Category 3: Projects set up under Renewable Energy Certificate (REC) mode.

  • Category 4: Projects under Jawaharlal Nehru National Solar Mission.


Contract Demand

Industrial consumers opting to buy power under categories 2 & 3 (as above), shall be allowed reduction in contract demand, permanently, on pro-rata basis.

Cap on Capacity

  • Category 1: Capacity as per Request for Proposal issued by the state govt.

  • Category2: Min cap – 0.025 MW (solar PV), 1 MW (solar thermal).

Max cap – 100 MW (for both PV and thermal).

  • Category 3: As per CERC/MPERC guidelines amended from time to time.

  • Category 4: As per allocation under JNNSM.


Performance Guarantee

  • Category 1: Capacity as per RfP issued by the state govt.

  • Category 2: Rs. 5 lakhs/MW

  • Category 3: Rs. 5 lakhs/MW



  • Category 1: As per PPA between developer and MP DISCOM.

  • Category 2: In case of third party sale/captive use/sale to other states, PPA between the power producer and the procurer, on mutually agreed rates, will be applicable. A separate agreement will be executed for banking of power with MP DISCOMs/ MP Power Management Co. Ltd. The wheeling agreement with Madhya Pradesh Power Transmission Company Ltd/MP DISCOMs, or with other grid or network as appropriate, will be executed separately.

  • Category 3: As perPPA between solar power producers and the procurer as per the Regulations/Orders of CERC and/or MPERC issued from time to time.

  • Category 4: As per allocation under JNNSM.

Incentives by State Govt.


  • 50% stamp duty exemption on purchase of private land.

  • All solar projects will be exempted from electricity duty and cess for a period of 10 years from date of commissioning.

  • The state govtwill provide a grant of 4% for wheeling charges, applicable as specified by MPERC, in terms of energy injected.

  • Banking of 100% is allowed.

  • Third party sale, within or outside MP, shall be allowed as per MPERC regulations issued from time to time.

Provision for Policy Review

 Not available 



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