Kerala Solar Energy Policy 2013 : Draft

The aim of this policy is to mainstream Solar Energy and harness Solar Energy potential in Kerala so as to ensure its  optimal use in the state. This policy came into effect on 1 April,2013.

The Targets set are quite ambitious:

  • Increase Solar Capacity to 500 MW by 2017 and 1500 MW by 2030.
  • Contribute to long term energy security of the state as well as reducing the carbon footprint at the same time.
  • Create R&D hub by establishment of Institutional collaboration with educational institutes, research center’s , industries etc.


Supply Side Interventions:

  • Off Grid roof top system at demand points
  • Promote conversion of existing inverters,diesel generators through off grid solar applications and incentives.
  • Off Shore Generating Solar Thermal Plants
  • Explore and develop storage systems.

Promotion of Solar Thermal Collectors:

  • Solar Water Heating system
  • Solar steam systems
  • Industrial applications

Financing of Projects: 

  • For Off Grid systems: Bank finance at attractive rates and provide generation based incentives rather than capital subsidies.
  • For Grid Connected systems: No EPC contract to be offered, but for design, build, operate and transfer scheme with annuity payments shall be preferred.
  • Grid connected In Non-Government Building: Incentives will be provided through net metering, feed-in tariff and REC mechanism.
  • Grid connected for domestic users: Cluster wise installations will be given suitable incentives on conditional basis for adopting Solar Installations.
  • For logistically technically challenging options like off shore generating plants, projects shall be methodized  on grounds of competitive bidding in IPP mode.

Solar Procurement Obligation(SPO):  This will be mandated for Commercial consumers with more  than 20 kVA connected load, LT Industries with more than 50kVA connected load and for all HT & EHT consumers in a phased manner.

The above obligations maybe fulfilled their SPO via:

  • Equal procurement or more than their SPO from third party developers of Solar Power Projects in Kerala.
  • Procure REC’s generated by Solar Power Projects in the state equivalent or more than their SPO.
  • Purchase power from KSEB at solar tariff
  • Install separate meters to measure captive generation to avail SPO exemption on Captive Solar generation.

Incentives and Facilities: 

  • For projects with capacity at par with 10 MW or less, KSEB will create necessary evacuation facilities beyond pooling station of the project. For higher capacity plants, evacuation facilities will be formulated on deposit work basis.
  • No open access charges
  • Wheeling and T&D losses not applicable for captive solar power generators within the state.
  • No electricity duty
  • Conditional banking facility shall be available to captive generators after taking into account system constraints.

For more information read here: draft_solarpolicy2013-02-24



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