Incentives under the AP Solar Policy 2012

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.


One response to “Incentives under the AP Solar Policy 2012

  1. Sir,
    Can we only avail CSS and Banking incentive from the policy and be eligible to claim REC’s? APERC states in its earlier regulations that RE plants must pay 50% CSS, this was prior to the new G.O’s issued by the Government. CERC didnt state anything about CSS. So can we avail CSS in AP, while going for open access?

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