M/s SAEL Solar P6 Private Limited has approached the Uttar Pradesh Electricity Regulatory Commission seeking major financial exemptions for its proposed solar manufacturing project in the state. The company plans to invest around INR 8,000 crore to set up an integrated 5 GW photovoltaic cell and module manufacturing facility, which is expected to be one of the largest such units in the region.
The main issue in the case is the company’s request to waive key electricity-related charges. SAEL has asked for exemptions from transmission, wheeling, and banking charges, which are usually applicable to large power consumers. It has also requested the removal of Time of Day (ToD) restrictions so that it can use stored or banked solar power at any time, including peak hours, without facing additional costs. According to the company, these relaxations are necessary because electricity is one of the biggest expenses in solar cell manufacturing.
SAEL has argued that global competition in the solar manufacturing sector is intense, with many international players receiving heavy subsidies from their governments. To remain competitive in such a price-sensitive market, the company believes it needs stable and low-cost power. Without such support, it may be difficult for domestic manufacturers to match global pricing.
The project is aligned with national and state-level policies, including the Atmanirbhar Bharat Policy 2020 and the Uttar Pradesh Industrial Investment and Employment Promotion Policy 2022. The state government has already provided some support through a Letter of Comfort, but the company is now seeking further regulatory relief from the Commission. It has also requested permission to set up a captive power generation plant with a capacity exceeding the usual 125 percent contract demand limit, citing high energy requirements.
During the hearing held on April 28, 2026, the Commission, led by Chairman Arvind Kumar and Member Sanjay Kumar Singh, observed that the reliefs sought by the company may go against the existing 2024 regulations governing captive and renewable energy plants. However, the Commission decided to admit the petition after hearing the company’s legal counsel.
The respondents in the case, including the Uttar Pradesh Power Corporation Ltd. and the Uttar Pradesh Power Transmission Corporation Ltd., have been given three weeks to submit their responses. SAEL will get an additional two weeks to file its reply after that. The next hearing in the matter has been scheduled for June 9, 2026, where further discussions are expected.
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