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How To Make Guaranteed Benefits From Gujarat Solar Policy


To achieve the vision of making the country energy independent. Mr. Piyush Goyal is on a mission to achieve 1 GW of grid-connected solar power by 2022. 

Few central agencies help attain this target through the following measures:

  • Implementation of long-term policies at both central and state levels
  • Investments in research and development
  • Domestic production of raw materials, components, and products


Along with the policies at the center. Individual state policies help towards achieving the energy goals in a holistic sense. 

Due to that, some states have seen success with their solar installation goals. 

Top 3 states in the country with highest solar power project installations include:

  • Rajasthan
  • Gujarat
  • Madhya Pradesh 

The list is in descending order of the solar projects installation in MW for the year 2016. 

The topography of Rajasthan is conducive for solar projects. Its irradiation levels are favorable to the amounts of unused lands. Thus, those factors helped the state to top the list. 

Though, Gujarat ranks second for the past year. But the state topped for the year 2015. 

Along with natural factors working in its favor. The Gujarat solar policy also played a huge role in the state’s success in the solar mission. 

Achievements of Gujarat Solar policy


Gujarat is the first state in the country to come up with a Solar Power Policy in 2009. That is one of the prominent reasons for their meeting the renewable energy targets. 

Gujarat pioneers in building Asia’s first Solar Power Park. Its district Patan has Charanka Solar park that is capable of producing 500 MW of power. 

The state also boasts of solar panels spread on the canal branches of river Narmada. In addition to electricity generation. The panels also help prevent the evaporation of canal’s water reserves. 

The solar growth in the state of Gujarat is consistent. From 1000 MW to 1119 MW in the financial years 2014-15 and 2015-16. 

Gujarat government’s solar policy plays a pivotal role in the spread of solar projects. The policy comes under GEDA’s purview. 

GEDA (Gujarat Energy Development Agency) is the nodal agency for alternative energy promotion. It acts as a herald for the central run agencies such as: 

  • CASE (Commission on Additional Sources of Energy)
  • MNES (Ministry of Non- Conventional Energy Sources)
  • MNRE (Ministry of Renewable Energy)


Regulations of Gujarat Solar policy for retail consumers


The Gujarat government defines the solar power installations with a legal terminology. That is Net Metering Rooftop Solar PV Grid Interactive Systems. 

Rooftop solar PV refers to the solar powered PV system. It converts the direct sunlight to electricity through photovoltaic (PV) technology. 

Grid interactive systems refers to the local electricity distribution system. For an instance, grid of MGVCL in Vadodara. 

Net metering refers to the set-up between a solar installation and the local grid. The set-up is dependent on the unit of power that the solar PV system generates. 

The units of power generated are off-set with the consumer’s consumption figures. Thereby, a respective solar system installation brings in reduction in the utility bill. 

All calculations for units consumed/ generated are for individual billing cycles. Credits/ debits get adjusted in the following bill. 

When the electricity generated at consumer’s premise is more than they consume. 

Then, the concerned DISCOM buys those surplus units of electricity. The rate of purchase is as per the APPC (average power purchase cost) rate. 

The INR amount with respect to the units of power generated credits back to the consumer’s bill. This leads to a monetary credit as per the respective surplus units in the forthcoming bill. 

The respective financial year of commission of the system determines the rates. Then, that rate stays the same for the entire life time of the PV system. (unless the Gujarat Solar Policy amends their regulations). 


Eligibility Requirements for retail consumers to avail benefits from Gujarat Solar Policy


Gujarat government has led out criteria to avail benefits from the PV installations. 

They are as follows:

  1. The premises of the applicant must be in the supply area of the distribution licensee. Thus, their source of power supply and net metering must be the same DISCOM.
  2. The eligible consumer must have a legal possession of their premises. This is an essential requirement for the solar system installation. So, an applicant in a rented premise is not eligible for the same.
  3. The consumer must be using the system to offset a portion of their own power consumption. By no means, they should use the net metering policy for commercial activities.
  4. 100% of a residential consumer’s sanctioned load is the maximum capacity of the PV system installation. Also, the consumer must have a minimum of 1 kW contract demand to avail this policy. The upper limit for the same is 1 MW. But for a customer other than residential, the sanctioned load capacity is limited to 50%.
  5. The consumer must have appropriate proofs to state the amount of power supplied to the grid. That is along with the proof for the quantum of electricity they consume.

For the latter, the usual meter works. For the former. An installation of a solar meter helps. The difference between the powers is the adjusted power.

Hence, with the knowledge of net power. The electricity distribution licensee either bills/ or credits units to the consumer.


Documentation requirements from customers to get a solar rooftop:


  1. Latest electricity bill (in original, and not more than 3 months old from the present day)
  2. House tax receipt
  3. Aadhar card copy
  4. 2 Passport photographs of the applicant
  5. In a case of different ownership in the power bill and House tax receipt. The person with the electricity bill needs to submit an appropriate affidavit. The affidavit must contain the no objection status from the one with house tax.  
  6. Filled forms of “New Connectivity Agreement” and “Residential Solar Rooftop System Information Form”. The former form changes as per the region in Gujarat.


Connectivity charges applicable for getting a Solar rooftop connection:


The charges for the distribution licensee for any region in Gujarat are as below:


System Size Applicable charges/ Connection
1 1 kW – 6 kW INR 1,500
2 Between 6 kW – 100 kW INR 10,000
3 Between 100 kW – 1 MW INR 50,000


These charges are over and above the cost of solar system installation. The payments are for the regional licensee and not the solar system integrator.


In Conclusion:


No matter which state you live in. The power utility rates always move northwards. 

A bigger household adds to the rising electricity bill woes. Along comes the factors like temperature changes adding to the miseries. 

Summers need air conditioners. While winters require room and water heaters. 

For these reasons, rooftop solar PV systems help. They help offset the electricity bills. A one-time capital investment in them leads to savings for the years to come. 

If you belong to the state of Gujarat. Then, the Gujarat Solar Policy will help you to make use of their state-specific policy. 

It gives subsidies at the time of installation. It also gives the net metering advantage. The state’s subsidy is over and above the ones provided by the central government. 

State’s present rate of tariffs help in reducing the consumer’s utility bill amounts. 



The current policy is for the financial year 2016 – 17. It keeps getting amendments. MI Solar stays in regular touch with the solar policy regulating authorities. This helps us pass on the benefits to our consumers quick. 

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