Chhattisgarh State Solar Energy Policy 2017–30

The Chhattisgarh State Solar Energy Policy 2017–30 is administered by CREDA as nodal and single-window agency, under the overall supervision of an Empowered Committee chaired by the Chief Secretary. It sets out four categories of solar power plant, the commercial and regulatory terms on which each may sell or bank electricity, the industrial-policy and electricity-duty incentives available to a qualifying plant, and the land, timeline and operating-life conditions attached to those incentives. Clause 2 of the Policy states its period of operation as till 31 March 2030 or till the issuance of a new Solar Energy Policy, whichever is earlier.

The Introduction records that, in the context of increasing global awareness towards environmental conservation and climate change, it has become necessary to reduce the State's dependence on conventional coal-based sources and to make maximum use of non-conventional energy sources, among which solar energy occupies an important place. Keeping a balance between energy security and environmental conservation, promoting non-conventional sources is treated as a decisive strategy to eliminate dependence on fossil-based fuels in a planned manner and to bridge the gap between electricity demand and supply.

The Factual Case Recorded in the Introduction

Policy Objectives — Clause 1

• •Promote solar energy based power generation to meet demand, and for long-term environmental and economic benefits.
• •Promote private sector participation in solar power generation.
• •Create a favourable environment for development of solar generation capacities in the State.
• •Meet long-term energy needs and reduce thermal reliance.
• •Promote off-grid solar applications on a Stand Alone basis in remote and inaccessible areas.
• •Ensure clean energy access and decentralised production.
• •Create large-scale employment in solar production, manufacturing and ancillaries.
• •Effectively utilise fallow / non-agricultural unused land.
• •Develop skilled and semi-skilled human resources for this sector.
• •Encourage innovative projects related to solar power generation.

Eligibility of Project Developers — Clause 3

The following are eligible to set up solar power projects, whether for captive use and/or for sale of power, as per the Electricity Act 2003:

• •Any person.
• •Any registered company.
• •Central and State power generation and distribution companies.
• •Public and private sector solar power project developers — solar PV and solar thermal.
• •Manufacturing units of equipment related to solar projects, and ancillary industries.

Types of Solar Power Plants — Clause 5

Target Capacity by Category — Clause 6

Rooftop — Clause 4(d) and Clause 7

• •Grid connectivity will be provided to rooftop solar power plants of 1 kW, or of capacity more than 1 kW.
• •Solar power generation on building rooftops is treated as an important emerging area; pilot projects may be commenced with GoI support.

A. Routes to Monetise Generation — Clause 4

B. Incentives Under the Industrial Policy — Clause 8

C. Additional Incentives — Clause 9

D. Banking — 100% banking facility, Clause 9(d)

Solar plants of the State are provided a 100% banking facility in every financial year, subject to verification of deposited units by CSPDCL, CSPDCL regulations for refund, and year-end disposal under CSERC rules. Banking charges vary by peak / off-peak period:

E. Energy Accounting for Industrial Establishments — Clause 9(d)(v)

Industrial establishments in Category-II or Category-III purchasing from CSPDCL against contracted demand will have their energy accounting governed by CSERC (Intra State Availability Based Tariff and Deviation Settlement Mechanism) Regulations.

F. Permission to Sell — Clause 9(d)(vi)

Permitted to sell electricity within or outside the State, subject to orders and directives issued under the Electricity Act 2003 and CSERC regulations.

A. Grid Connectivity and Power Connection — Clause 9(f)

• •Injection into the substation of the nearest CSPTCL / distribution licensee is permitted under the Grid Code.
• •Power line from the switch yard of the solar plant to the grid substation (interconnection point) will be established at the developer's expense.
• •Option to construct line under supervision (with fee) or own-supervision (no fee).
• •Must obtain confirmation of technical capacity availability from the transmission/distribution licensee before constructing.
• •Nodal utility must confirm capacity within 30 working days of application.

B. Land for a Grid-Connected Project — Clause 9(g)

• •Land allotment is made under Industrial Policy infrastructure development provisions.
• •Captive solar plants receive priority at the time of allocation of the Land Bank.
• •Model rehabilitation policy applies where the Government acquires private land.
• •Developer is solely responsible for obtaining statutory approvals and permissions.

C. Solar Parks — Clause 6(e)

State Government encourages development of solar parks with common infrastructure (land, water, roads). Setting up plants under private investment or PPP mode on a cost-sharing basis is encouraged.

D. Project Completion Timeline — Clause 10

Projects allotted must be completed within 36 months. Extensions may be granted by the Energy Department on request after progress review.

E. Prohibition on Fossil Fuel — Clause 11

Use of any fossil-based fuel (coal, gas, lignite, naphtha, wood) is strictly prohibited. Solar thermal plants installed within a unit's premises must be kept in physically separate premises from any pre-existing fossil-fuel plant.

Threshold Conditions

Document Checklist — Grid-Connected Solar Power Project

Document Checklist — Banking, REC, Land Bank & Incentives

Strings Attached

Concessions refund: Early closure before 25 years triggers refund of all concessions received. Delay in Land Bank or concessional private-land project execution beyond 1 year triggers automatic cancellation and recovery under Land Revenue Recovery Act.

Verification: Banked units must be verified each year by CSPDCL, and peak banking charges of 15% (Feb-June) are substantial. In case of discrepancy, the Hindi gazette text is authoritative.

1. 1Step 1 — Project categorization: Fix Category-I, II, III or IV based on sale route and 500 kW single-site limit.
2. 2Step 2 — Land acquisition: Apply for Land Bank priority or purchase private land concessionally, registering the 1-year construction deadline.
3. 3Step 3 — Interconnection capacity confirmation: Apply to transmission/distribution utility (30 working days confirmation window).
4. 4Step 4 — CREDA Single Window clearance: Apply for statutory clearances, consents and allotment approvals.
5. 5Step 5 — Supervision election: Submit self-supervision election to avoid utilities' fee.
6. 6Step 6 — Open access and surcharge accounting: Apply for CSERC open access, wheeling, and cross subsidy surcharge approvals.
7. 7Step 7 — REC registration: Register the project under CSERC/CERC REC guidelines.
8. 8Step 8 — Project execution: Complete within 36 months, applying for department extensions if needed.
9. 9Step 9 — Exemption filing: Apply for electricity duty exemption and industrial policy incentives.
10. 10Step 10 — Banking operations: Execute yearly banking verifications with CSPDCL, tracking peak banking charges.
11. 11Step 11 — 25-Year compliance: Operate continuously for 25 years from commercial production to avoid concession recovery.

Composition — Empowered Committee (9 members)

• •2014: MNRE JNNSM announced (20,000 MW target).
• •2017: JNNSM target raised to 40,000 MW.
• •09/11/2020: Order No. 1909 consolidates previous administrative steps.
• •04/11/2025: Energy Department issues Solar Policy 2017-30 consolidated under Order No. 2782/F 12/03/2017/13/2.
• •12/12/2025: Published in CG Rajpatra Part 1, No. 50 (pp. 1591-1612).
• •31/03/2030: Outer limit of Solar Policy operations (or issuance of a new Solar Energy Policy, whichever is earlier).
• •25 Years: Mandatory operating life from commercial production date (starts concessions refund protection).