Indian solar park off-taker rules change

July 28, 2017
Facebook
Twitter
LinkedIn
Reddit
Email
The country is currently in the process of extending its solar park capacity from 20GW to 40GW, but there are some PPA issues. Credit: SunEdison

India’s Ministry of New and Renewable Energy (MNRE) has released a document clarifying the rules for state government offtake of solar park capacity.

The country is currently in the process of extending its solar park capacity from 20GW to 40GW.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

In its previous regulation, it was stated that state governments must buy at least 20% of the power produced from any solar park via the distribution company (Discom). However, the rules have been clarified to say that if the state government has agreed to buy more than 20% of the power from one or more solar parks in the state, then it is permitted to purchase a lower portion of power from subsequent parks, as long as at least 20% of the aggregate power generation of all the solar parks in the state has been purchased.

In the background of this annoucement, Mercom Capital Group has reported that State-run utility NTPC is looking for an offtaker for the solar power generated at the 250MW Kadapa solar park in Andhra Pradesh. French firm Solairedirect had won the capacity in an April auction with a bid of 3.15/kWh (US$0.0487), which at the time was the lowest ever PV tariff in India. However, Andhra Pradesh State Power Distribution Company (APSPDCL) has reportedly refused to sign a power purchase agreement (PPA) due it being able to procure power at a lower cost from other sources as well as having a power surplus.

MNRE has also released an application document for proposing solar parks, and another listing many of the factors that need to be taken into account when planning solar parks and projects within solar parks.

In related news, the World Bank plans to provide US$100 million of financing for the development of internal infrastructure of solar parks in India, with Indian Renewable Energy Development Agency (IREDA) facilitating the offer.

This financing comes on top of the US$625 million of low cost financing provided by the World Bank for rooftop PV developers, via a Programme for Results (PforR) to be directed by the State Bank of India.

A central government release stated: “These programmes will increase the availability of debt financing, de-risk commercial financial flows, and build capacity across the solar PV industry to significantly expand the programme of rooftop solar PV across India. The first 100MW of solar rooftop financing under this loan has just been approved.”

Consultancy firm Bridge to India recently reported that Indian rooftop solar had reached nearly 1.4GW of deployment by the end of March having doubled in 12 months.

There has also been some controversy around delays in solar park infrastructure.

Read Next

November 17, 2025
Jakson Group has started Phase 1 construction of its 6GW integrated solar ingot, wafer, cell and module manufacturing facility at Maksi, Madhya Pradesh.
November 17, 2025
India’s race to 500GW is being slowed by critical grid bottlenecks, NTPC PMI’s Abhinav Jindal told PV Tech.
November 17, 2025
Saatvik Green Energy, through its subsidiary Saatvik Solar Industries, has secured solar PV module orders worth INR1.77 billion (US$19.9 million). 
Premium
November 17, 2025
PV Talk: India’s race to 500GW of clean energy is being slowed by critical bottlenecks. NTPC PMI’s deputy general manager Abhinav Jindal tells Shreeyashi Ojha what steps India must urgently take to stay on track with its 2030 targets.
November 14, 2025
NSW has removed regulatory barriers that previously prevented owners of heritage-listed properties from installing rooftop solar.
November 13, 2025
Xcel Energy will have to provide higher-quality data, and introduce flexible tariffs, following a vote from the Colorado PUC.

Upcoming Events

Solar Media Events
November 25, 2025
Warsaw, Poland
Solar Media Events
December 2, 2025
Málaga, Spain
Solar Media Events
February 3, 2026
London, UK
Solar Media Events
March 24, 2026
Lisbon, Portugal
Solar Media Events
June 16, 2026
Napa, USA