Uttar Pradesh Solar Energy Policy 2022–2027

Launched in 2022 and effective until 2027, this policy aims to accelerate solar power adoption across residential, commercial, and agricultural sectors in Uttar Pradesh.

Target Capacity: 22 GW by 2027

Implementing Agency: UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency)

Policy Targets

Sector	Target Capacity
Residential	4.5 GW
Commercial (Utility-scale)	14 GW
Agricultural	Supported under PM-KUSUM

Residential Solar

• Capacity Target: 4.5 GW
• Incentives & Benefits:
  • State subsidy up to ₹30,000 per consumer for grid-connected installations.
  • Additional Central Financial Assistance (CFA) of up to ₹18,000 per kW.
  • No prior permission for solar mounting structures on roofs.
  • Structures under 4.5m height exempted from building height restrictions.
  • Grid-connected plants up to 10 kW exempt from State Electrical Inspector inspection.
  • Net Metering: 1 kW to 2 MW allowed.
  • Government institutes and state buildings can avail net metering.

Commercial Solar

• Capacity Target: 14 GW
• Key Highlights:
  • Rooftop solar allowed up to 2 MW.
  • Encouragement for MSMEs and startups.
  • Land bank creation for solar project development.
  • 100% energy banking allowed every financial year.
  • 100% electricity duty exemption for 10 years.
  • Open access for solar projects above 1 MW.
  • Land lease at ₹15,000 per acre per year for 30 years.
  • Guaranteed connectivity to nearest grid substation.
• Additional Incentives (Projects > 1 MW):
  • 100% exemption on stamp duty.
  • 50% exemption on intrastate wheeling/transmission charges.
  • 100% exemption on cross-subsidy and wheeling/transmission for power purchase.
  • Promotion of floating solar on canals and reservoirs.
• Capital Subsidy: ₹2.5 Crore/MW for utility-scale projects > 5 MW with 4 hours battery storage.

Agricultural Solar

• Subsidies (PM-KUSUM Component C):
  • 70% subsidy for STs, Vantangia, and Musahar farmers.
  • 60% subsidy for other farmers.
• Govt support for grid connectivity of standalone solar projects (5 MW+) in Bundelkhand and Purvanchal.
• Transmission line cost partially covered by govt.
• Projects allocated via competitive bidding.

The Uttar Pradesh Solar Energy Policy 2022 offers a strong foundation for clean energy transition. With generous subsidies, streamlined processes, and dedicated support from UPNEDA, the policy promotes sustainability and aligns with India's renewable energy goals.