The main incentives as per the AP Solar Policy 2012 are as follows:
- Banking: Banking of 100% of energy shall be permitted for one year from the date of banking. The settlement of banked energy will be done on monthly basis. However, banked units cannot be consumed/redeemed from February to June and also during TOD hours as amended from time to time. Developer will be required to pay 2% of the banked energy towards banking charges. Suitable amendment will be incorporated in the concerned regulation of APERC.
- Exemption of Wheeling and Transmission Charges: For all the intra-state open access transactions (through 33kV system), wheeling and transmission charges are exempted
- Exemption of Cross Subsidy Surcharge (CSS): Consumers purchasing power from solar projects are exempted from CSS. This will be a great relief for consumers as CSS remains the major cause of worry for consumers as well as developers opting for third-party sale / open access
- Exemption of Electricity Duty: E-Duty is also exempted for all the solar power projects opting for third party sale and/or captive usage
- Refund of VAT, Stamp Duty and Registration Charges: Solar developers will be able to get the refund of the said charges
All projects developed with the above incentives will be eligible for REC benefits subject to applicable CERC/APERC guidelines.
Developer may decide either to avail eligible incentives or only the incentives permissible under the CERC/APERC guidelines. Deemed injection into grid for in-house/ co-located solar generation will also be eligible for REC benefits subject to applicable CERC/ APERC guidelines.