Incentives For Solar & Other RE Users By Odisha Under Renewable Energy Policy, 2022

Renewable Energy

The state of Odisha has issued its renewable energy policy, which intends to provide the solar industry with the required boost and speed up adoption in the region.


The state’s desire to encourage the use of renewable energy sources, particularly through captive and open-access forms, has been underlined in the policy. It has declared a plethora of exemptions in an effort to draw businesses and industries from all across the nation.


The policy will be in effect until March 31, 2030, or until a new policy is announced by the state government.


The goal of the strategy is to encourage solar parks with a minimum 25 MW capacity in order to lower the cost of generating and the related infrastructure.


Further, within the framework of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) initiative, the policy encourages the solarization of current irrigation pumps.

In addition, the government intends to use cutting-edge technologies like agri-PV to combine energy production with agricultural output on one piece of land, enabling optimum land usage.

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In order to expedite the deployment of rooftop solar on government buildings, the Odisha Renewable Energy Development Agency (OREDA) would combine the demand from several government divisions.

Solar rooftop power consumers will get subsidies in accordance with any state or federal regulations.

All of the state’s distribution firms (DISCOMs) will purchase electricity at the rate set by the Odisha Electricity Regulatory Commission (OERC).

The nodal agency will provide a suitable method for obtaining solar energy for rooftop and non-park solar methods for electric vehicle (EV) charging.

The first 50 MW of solar systems for EV charging will be qualified for a 50% concession on land and lease payment during the policy period.

The locations for the floating solar projects will be allocated for an initial term of 30 years and may be extended by five additional years with the agreement of the state government. The projects will be created on a build, own, and operate basis.

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The state government would grant captive and open-access consumers of renewable energy, as well as energy storage projects, a Rs. 0.50/kWh rebate on electricity duty.

Additionally, state transmission utility (STU) fees would be waived for 15 years at a rate of Rs. 0.20/kWh, which will be extended for 5 more years if the project is started by March 31, 2026.

The cross-subsidy surcharge would also be subject to a 50% exemption for 15 years following the projects’ commissioning dates.

The policy stipulates a 25% decrease in wheeling fees for 15 years of energy consumption from state-commissioned projects.

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