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Uttar Pradesh Mini-Grid Policy - 2016

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Nodal Agency

Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA).

Applicable Technologies

Wind, solar, biomass, small hydro.

Policy Period

Effective from date of issuance until modified or superseded by another policy, whichever is earlier.

Targets under Policy

Not available.

Incentive Amount

  • 30% subsidy for projects.
  • Incentives as provided in industrial policy.
  • Other infrastructure-related support.

Eligibility Conditions

Maximum capacity of 500 kW

Tax Exemptions

Not available.

Evacuation Arrangement

Not available.





  • Mandatory power supply to domestic consumers for 3 hours in the morning and 5 hours in the evening totallinga minimum of 8 hours electric supply to meet domestic demand. 
  • Daily 6 hours power supply to production and commercial loads.
  • Developer should lay down electricity distribution system as per Central Electricity Authority and UPPCL guidelines and electrical safety and security standards. 

Electricity tariff

  • Rs. 60/- per month for 50 Watt.
  • Rs. 120/- per month for load up to 100 Watt, for daily 8 hours electricity supply.
  • For load more than 100 Watt, tariff would be determined by mutual consent by consumers and developer. 

Land requirement

Land would be arranged by the developer for sanctioned projects. 

Self-identified projects

  • Developer should fulfil needs of domestic demand, agriculture works and commercial establishments.
  • No restrictions on distribution of energy by the developer.
  • Tariff will be decided through mutual consent by the developer and consumers.

Benefits of other infrastructure supports, incentives provided in the industrial policy can be availed, and an exit process would be provided in case of conventional grid access. 

Exit process

In case of conventional grid access, the following two exit processes would be offered to established mini-grid projects:
  • The energy generated from the plant will be received in the grid by the DISCOM at the tariff decided by Uttar Pradesh Electricity Regulatory Commission/tariff decided by mutual consent.
  • Based on the cost benefit analysis of the installed project, the project will be transferred to the DISCOM at a cost determined by mutual consent by DISCOM and developer,on an estimation of cost/profit loss of the project installed by the developer.-

Period of implementation

Implementation of projects:

  • Solar projects - 6 months
  • Biomass/bagasse based projects - 9 months
  • Wind and small hydro power projects - 1 year

6 months extension may be provided for actual/natural delays in project implementation. 

Fossil fuel

  • Solar thermal projects – fossil fuel use is prohibited.
  • Biomass projects – permissible as per Govt. of India standards
  • Solar photovoltaic projects - In absence of requisite solar energy diesel genset can be used to charge the battery bank after complying with the environmental standards. 

Single window clearance

UPNEDA would act as the nodal agency for single window clearance for all mini-grid projects. 





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