Kerala Solar Policy 2013 – 1500 MW by 2030

by Sindhura

The state’s solar policy so far has been unique with its focus on distributed power generation, while the center and many other states announced policies that laid emphasis on utility scale projects. The state had previously announced a 10,000 solar rooftops policy, totaling a small 10MW, for the year 2012-2013. Now in 2013, it has released a solar policy which will be effective from 01/04/2013. This policy sets higher and long term targets for its installed solar capacity.

-          500 MW by 2017

-          1500 MW by 2030.

This blog is a quick summary of the strategies, incentives offered and obligations imposed by this policy.


Strategies: The policy’s strategies include

Supply Side Interventions:

  1. Off grid systems at demand points
  2. Conversion from inverters, diesel generators to solar
  3. Off site generation
  4. Storage systems

Solar Thermal Collectors:

  1. Solar Water Heating Systems
  2. Solar Steam Systems
  3. Industrial applications
Incentives:The policy is offering different incentives for different groups.

Off grid-

  1. Bank finance at attractive rates.
  2. Generation based incentives – not capital subsidy. Probably will discourage use of cheaper/ low performing solar options. The existing capital subsidies will be restructured.

Grid Connected –

  1. Public buildings: Contracts will not be for EPC but for design, build, operate and transfer. Within 2 years.
  2. Non government buildings/premises: incentives will be net metering, feed-in-tariff and REC mechanism.
  3. Domestic: Cluster wise installations

The Feed-in-Tariff, Net metering and Pooled cost of Energy are all to be notified by KSERC later. The incentives also include the usually offered -

-          Evacuation facility: KSEB will provide the needed evacuation for capacities.

-          No Open Access charges

-          No Wheeling and T&D charges for captive solar generators

-          Exemption from electrical duty

-          Conditional banking facility for captive generators

-          Subsidies from MNRE


Solar Obligations: 

Solar Procurement Obligation (SPO) will be imposed on Commercial consumers with more than 20 kVA connected load, LT industrial with more than 50 kVA and for all HT & EHT consumers in a phased manner. HT and EHT consumers have to procure 3% till March 2014 and 6% from April 2004. The commercial and LT users also have to start the 6% SPO from April 2004. Even the domestic consumers with more than 500 units/month consumption are to be included for the same SPO later. These obligated parties can fulfill their SPO by

  1. Buying from third party developers, in Kerala
  2. Buying RECs
  3. From KSEB at solar tariff
  4. Captive solar generation

It seems that the state wants to finance from large power consumers than from state owned DISCOMs.


Besides the SPO, the policy is also making following requirements for residential and commercial sectors.

Large domestic buildings are mandated to have both solar water heating as well as PV power generation units installed.

  • 2000-3000 sq. ft should have 100 liters of solar water heating and 500 W PV.
  • > 3000 sq. ft. should have 100 liters solar water heater and 1000 W PV.

Residential flats are to have > 5% power for common amenities from solar.

Commercial buildings with more than 50 kVA load are also mandated to have solar water heating.


The original document can be viewed at: http://anert.gov.in/images/stories/solar/policy2013/draft_solarpolicy2013-02-24.pdf


One thought on “Kerala Solar Policy 2013 – 1500 MW by 2030

  1. Pingback: Kerala Solar Policy 2013 - Final | EfficientCarbon

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