Gujarat eases its solar policy to benefit MSMEs

The Gujarat government has relaxed the state’s solar policy to allow micro, small and medium enterprises (MSMEs) to install solar projects that are more than 100 per cent of their sanctioned load or contract demand. Prior to amendments, the Gujarat Solar Policy, which came into effect in 2015, allowed commercial and industrial consumers to install only 50 per cent of their sanctioned load. The changes in the policy will help MSMEs to set up larger rooftop solar and open access projects, thereby helping them to reduce power costs and enabling them to procure solar energy from third parties. These companies will be able to sell the excess solar energy to the state government at a cost of Rs 1.75 per kWh. However, MSMEs will still be liable to pay the electricity duty and wheeling charges.

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