Rajasthan imposed electricity duty of Rs.0.6/KWh on generation from SOLAR project under Net-metering

The stakeholders are deprived of the incentives available to solar projects under the policy, particularly clause 16 of the policy, which covers various facilities, incentives, and relaxations related to banking, transmission, and wheeling charges, and electricity duty, among others.

The Chairman of the Rajasthan distribution companies (DISCOMs) and the Rajasthan Urja Vikas Nigam Limited have issued an order, levying electricity duty of ₹0.60 (~$0.00081)/kWh on the consumption of power from captive solar projects, rooftop solar, and grid-connected small solar projects with the net metering facility.

REAR RENEWABLE ENERGY ASSOCIATION requests CM, Rajasthan to intervene and instruct the concerned departments to revoke the levy of ED @ Rs. 0.6/ KWh.

𝗥𝗮𝗷𝗮𝘀𝘁𝗵𝗮𝗻 imposed 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰𝗶𝘁𝘆 𝗱𝘂𝘁𝘆 of 𝗥𝘀.𝟬.𝟲/𝗞𝗪𝗵 for the power generation from Solar project under net metering, although as per Clause 16.4 of 𝗥𝗮𝗷𝗮𝘀𝘁𝗵𝗮𝗻 𝗦𝗼𝗹𝗮𝗿 𝗣𝗼𝗹𝗶𝗰𝘆, The electricity consumed by the Power Producer for captive use within the State under the following:-

• Clause 7.1( Rooftop PV Solar Power Systems with Net Metering).

• Clause 10.3.1(Solar Power Projects within premises of a consumer of Rajasthan).

• Clause 10.3.2 (Solar Power Projects outside the premises of consumer of Rajasthan)

• Clause 11.4 (Solar Power Projects with Storage Systems for captive use/third party sale.)

• Clause 13(iv) (The charging station service providers who set up renewable energy generation plants within their premises for captive use, or draw renewable power through open access from generation plants located within the State)

will be exempted from payment of Electricity Duty for 7 years from COD.

In December 2019, the Rajasthan government issued its Solar Energy Policy, 2019, which aims to target 30 GW of solar power by financial year (FY) 2024-25. Utility or grid-scale solar parks will account for 24 GW, distributed generation is expected to account for 4 GW, the solar rooftop will total 1 GW, and solar pumps will make up the remaining 1 GW.

The policy also talks about encouraging solar projects for captive use under various scenarios and the exemption of transmission and wheeling charges and electricity duty.

However, according to REAR, over 20 months have passed since the government approved the policy, yet the policy has not been fully implemented in the state. In several cases, government departments and the RERC do not refer to the new policy.

The REAR has claimed that the stakeholders are deprived of the incentives available to solar projects under the policy, particularly clause 16 of the policy, which covers various facilities, incentives, and relaxations related to banking, transmission, and wheeling charges, and electricity duty, among others.

In their letter to the Chief Minister, the association highlighted the letter issued by the Energy Department of Rajasthan, levying an electricity duty of ₹0.6 (~$0.00081)/kWh.

The letter further states that according to clause 16.4 of the Rajasthan Solar Policy 2019, the following are exempted from payment of electricity duty for seven years from commercial operation date – rooftop photovoltaic solar projects with net metering; solar projects within the premises of consumers in Rajasthan; solar projects outside the premises of consumer in Rajasthan; solar projects with a storage system for captive use; and charging station service providers who set up renewable energy generation projects within their premises for captive use.

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