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The Rajasthan Investment Promotion Scheme (RIPS) 2024 offers several key benefits and incentives for renewable energy, especially for solar captive power plants and other renewable projects. Below is a summary of the overall points and benefits for renewable energy and solar captive power:
1. Captive Renewable Energy Power Plants
Inclusion in EFCI:
Up to 51% of the investment in captive renewable energy power plants (such as solar plants) can be included in the Eligible Fixed Capital Investment (EFCI).
For group captive power agreements with a duration of 12+ years, 100% of the investment in the group captive plant can be included in the EFCI.
This inclusion increases the overall EFCI, helping the project qualify for higher incentives under capital or investment subsidies.
2. Subsidies and Incentives
Capital Subsidy:
Renewable energy projects, including solar captive plants, can avail capital subsidies based on the size of the project (Mega/Ultra Mega). The percentage of subsidy depends on the project’s EFCI.
Turnover-Linked Incentive:
Renewable energy enterprises can receive incentives based on their net sales turnover, providing ongoing financial support post-installation.
Investment Subsidy:
A reimbursement of 75% of the State tax (SGST) due and deposited is offered for 7 years, further lowering the cost of operations for renewable energy-based enterprises.
3. Banking, Wheeling, and Transmission Exemptions
100% exemption on banking, wheeling, and transmission charges for captive renewable energy plants used for self-consumption.
For 'behind the meter' renewable energy plants, there is no ceiling on maximum RE generation capacity, and electricity duty exemptions apply perpetually as long as no power is injected into the grid during off-peak hours.
100% banking allowed with no restrictions on withdrawals during peak hours for captive solar power plants, enhancing operational flexibility.
4. Anchor Booster Incentives
Enterprises designated as Regional Anchors or Sectoral Anchors are eligible for:
100% waiver/reimbursement of banking, wheeling, and transmission charges for their captive renewable energy plants.
This benefit applies for the period corresponding to the disbursal period of the chosen Asset Creation Incentive.
The 200% ceiling on captive power plants applies to solar plants that are set up as captive renewable energy power plants for self-consumption under the Anchor Booster and certain other incentive schemes. Specifically, these incentives are for enterprises classified as Regional Anchors or Sectoral Anchors and for projects falling under Sunrise Sectors like green hydrogen, where a 200% size limit on the capacity of the captive power plant is established
5. Benefits for Power-Intensive Sectors
Manufacturing enterprises in power-intensive sectors using renewable energy are eligible for an additional 5% reimbursement on state tax or 5%-point VAT reimbursement on PNG for a period of 7 years.
6. Exemptions for Solar Plants and Renewable Projects
100% exemption from electricity duty for 7 years.
Reimbursement of 100% mandi fees/market fees for 7 years for renewable energy projects.
7. Special Benefits for Green Hydrogen and BESS
Green Hydrogen production plants using renewable energy:
100% exemption on Cross Subsidy Surcharge (CSS) and Additional Surcharges (AS).
50% exemption on transmission and wheeling charges for 7 years.
Battery Energy Storage Systems (BESS):
75% exemption on transmission and wheeling charges for projects integrating BESS with renewable energy.
100% exemption for standalone BESS for power supplied during peak hours or non-solar hours for 7 years.
8. Environmental and Sustainability Benefits
Renewable energy projects, especially solar captive plants, help companies reduce their carbon footprint and comply with sustainability goals.
Enterprises that invest in clean energy solutions like solar captive plants can position themselves as leaders in environmental responsibility, potentially opening up new business opportunities and market recognition.
9. Long-Term Operational Savings
By generating their own power through captive renewable plants, enterprises can significantly reduce their dependence on external power sources, lowering energy costs in the long term.
The use of renewable energy sources ensures more stable energy pricing and shields companies from fluctuating grid tariffs.
10. Support for Large and Small Enterprises
The policy benefits both large-scale industries (Mega/Ultra Mega projects) and MSMEs, encouraging widespread adoption of renewable energy solutions across different sectors.
Conclusion:
RIPS 2024 offers comprehensive benefits for renewable energy projects, especially solar captive plants, through financial incentives, exemptions, and operational flexibility. These initiatives align with Rajasthan’s goals of becoming a leader in green energy and promoting sustainable growth, making it highly attractive for enterprises to invest in renewable energy solutions
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