Incentives for Grid Connected Solar Power Projects in Rajasthan

The Rajasthan state govt. has devised a solar policy to incorporate more solar projects in the region. The policy states the objective of developing 10000-12000MW solar power in next 10-12years. It encourages the setting up of power plants for direct sale to state discoms, sale to third party and through REC.

Govt. provides various incentives to the solar power producer like:

  • The govt. land will be allocated at concessional rate of 10% of the DLC rate (agricultural rate)
  • The energy consumed by power producers for own use will be exempted from duty
  • Generation will be treated eligible under schemes administered by Industries Department and hence its incentives will apply
  • Bank might extend the loans at a rate of not more than 5% to the entrepreneurs
  • Components and equipments required for setting up of solar projects are exempted from excise duty and in case of imports they attract concessional custom duty.

For solar projects that have signed PPA by 31/03/2011, solar tariff in Rajasthan are

Particulars Tariff (in Rs/kWh)without AD


Tariff (in Rs/kWh)if AD

benefit   is availed

Solar Thermal   Power Plantscommissioned   by 31.3.2013 12.58 10.99
Solar Photo   Voltaic (PV)Power Plants   commissioned

by   31.3.2012

15.32 13.19
Roof Top Solar   PV Installationsand other   small solar power

generation   plants covered in

GoI’s subsidy   scheme

commissioned   by 31.3.2012

15.32 13.19
Small Solar   Thermal Powergeneration   plants covered in

GoI’s subsidy   scheme

commissioned   by 31.03.2013

12.58 10.99

The generic tariff was determined as Rs15.39 per kWh for Solar PV and Rs15.04 per kWh for Solar Thermal and would be applicable for projects wherein the PPAs would be signed by 31.03.2012 and the plants would get commissioned by 31.03.2013 in case of solar PV and by 31.03.2014 in case of solar thermal.


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