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India is blessed with abundant sunshine and solar power is expected to play a critical role in meeting the energy needs of the country in the long run. Solar power projects can be setup in a much shorter timeframe when compared to conventional power projects and the cost of solar power has become more economical today. Solar power can also help meet energy requirements for both grid connected as well as off-grid applications such as solar powered agricultural pumpsets.
Andhra Pradesh is poised for rapid industrial growth driven by infrastructure investments and has also been selected by Ministry of Power as one of the pilot
states for implementation of the 24X7 – Power for All (PFA) scheme. Solar energy can become an important source in meeting the growing power requirements of the State.

The State government is keen to tap the immense solar potential and promote this clean source of energy to meet the rising energy requirements of the State.
The following factors make Andhra Pradesh an ideal location for setting up Solar Power Projects:

• Availability of about 300 sunny days in a year with solar insolation of more than 5 kWh/m²/day.
• Amongst the best performing power distributing companies in India (APEPDCL and APSPDCL).
• An efficient and strong evacuation infrastructure that can facilitate distributed generation.

AP has large agriculture consumption constituting around 24% of the total energy consumption of the State. Solar power can also help shift the agriculture load
and meet the power demand during the day time.

The Government of Andhra Pradesh had earlier issued the “Andhra Pradesh Solar Power Policy – 2012” vide G.O.Ms.No.39 dated 26.09.2012 and G.O.Ms
No.44 dated 16.11.2012 to promote solar power generation in the State.

Accordingly, the incentives under the Solar Policy were available for Solar Power Projects commissioned before 30.06.2014. To meet the twin objectives of energy security and clean energy considerations, the GoAP has felt it necessary to come out with a new policy for solar power. The policy aims to promote widespread usage of solar power and to meet the following objectives.


1 To target a minimum total solar power capacity addition of 5,000 MW in the next five years in the State with a view to meet the growing demand for power
in an environmentally sustainable manner.
2 To develop solar park(s) with the necessary utility infrastructure facilities to encourage developers to set up solar power projects in the State.
3 To promote distributed generation that can help in avoiding upstream network cost and contribute towards loss reduction.
4 To deploy solar powered agricultural pumpsets and meet power requirements of farmers during day time.
5 To promote local manufacturing facilities which will Generate employment in the State.


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