UPERC Examines Green Energy Exemption Request For Proposed Solar Manufacturing Project In Uttar Pradesh

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has taken up an important case involving renewable energy incentives and regulatory exemptions sought by M/s SAEL Solar P6 Private Limited. The company has approached the commission seeking several concessions for a proposed captive renewable energy project that will supply electricity to its upcoming Integrated Photovoltaic Cell and Module manufacturing facility in Uttar Pradesh.

The petition, registered as Petition No. 2353 of 2026, requests exemptions from transmission charges, wheeling charges, banking charges, and Time of Day restrictions on the use of banked power. The company argued that these benefits are necessary to support its large-scale manufacturing project being developed under the Uttar Pradesh Atmanirbhar Policy 2020 and the Industrial Investment and Employment Promotion Policy 2022.

SAEL Solar informed the commission that the state government had earlier issued a Letter of Comfort in July 2025, offering incentives to encourage investment in the manufacturing facility. The company has therefore requested the commission to exercise its regulatory powers and provide the additional reliefs sought in the petition.

However, Uttar Pradesh Power Corporation Limited (UPPCL) has strongly opposed the company’s demands. In its affidavit before the commission, UPPCL stated that the requested exemptions are contrary to the provisions of the Uttar Pradesh Electricity Regulatory Commission Captive and Renewable Generating Plants Regulations, 2024, as well as the Open Access Regulations, 2019.

According to UPPCL, a private company cannot seek exemptions from regulations that apply equally to all market participants merely to improve the commercial viability of its business. The utility argued that factors such as cost savings, profitability, and investment expectations may be important from a business perspective, but they do not justify relaxation of established regulatory provisions.

UPPCL further pointed out that the state government had already examined SAEL Solar’s proposal and granted a customized incentive package. The utility noted that the government had specifically declined to provide banking-related relaxations. Therefore, it argued that the petitioner cannot seek the same benefits indirectly through the regulatory commission.

The utility also stated that the Uttar Pradesh Solar Energy Policy 2022 allows only a 50 percent exemption on transmission and wheeling charges. As a result, the company’s request for a complete waiver of these charges is not supported by the policy framework. UPPCL additionally highlighted that the Letter of Comfort limits the renewable energy plant capacity to 125 percent of the facility’s contracted demand, indicating that the authorities had already placed clear restrictions on the project.

During the hearing, conducted by UPERC Chairman Arvind Kumar and Member Sanjay Kumar Singh, the petitioner informed the commission that Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) had not yet submitted its response. SAEL Solar requested additional time to review and respond to UPPCL’s objections.

The commission accepted the requests and directed UPPTCL to file its reply within two weeks. The petitioner was granted a further two weeks thereafter to submit its rejoinder. The matter will now be taken up for further hearing on July 21, 2026.