Renewable Energy Sector Overview
Sector Overview :
In an ambitious move to bolster the renewable energy sector, Uttar Pradesh unveils a comprehensive incentive policies targeted at renewable energy companies and investors.These policies aims to significantly ramp up renewable energy production capacity whilst fostering a conducive investment climate.
  1. Overview
  2. Objectives
  3. Enablers
  4. Fiscal Incentives
Sector Overview
1
• 28GW  Capacity to produce renewable energy in the State.
• 30%   Increase in production capacity of grid connected renewable energy(2017-2018) in the State.
• 4.39 lakhs  Bio-gas Plant in the State.
• 2000MW  Capacity Solar energy is to be installed declared by the State.
Objectives
2
  • Achieve significant growth  in the state's renewable energy capacity, with a focus on solar, small-scale hydro, and biomass-based electricity production.
  • Foster a conducive environment  for private and international investment in the renewable energy sector through a liberal FDI regime and attractive subsidies.
  • Promote sustainability and environmental consciousness  by increasing the share of renewable energy in the state's energy mix.
  • Facilitate the establishment of solar parks   and other renewable energy infrastructure through stamp duty exemptions to make land acquisition more accessible and cost-effective.
Enablers
3
Massive Decentralised Green Economy  exists in the State.
Abundance Of Raw Material  viz. bagasse and rice husk etc.
Govt. Scheme  viz. Development of Solar and Ultra Mega Solar Power Projects,Kusum Yojana, Village Electrification Program.
Liberal FDI Regime : 100% FDI allowed through automatic route.
Green Energy corridor  is being set up in Bundelkhand Region of the State to facilitate evacuation of power of 4000 MW capacity.
Bundelkhand Saur Urja Pvt Ltd (BSUL)  have been formed for development of Solar Parks.
Investment and Fiscal Incentives
4
Investors and technology firms are encouraged to leverage this unique opportunity to be part of Uttar Pradesh's technological renaissance. For detailed insights and to explore investment opportunities, reach out directly to the Project Management Unit under the supervision of the Nodal Agency.
Land Rebate :
  • Land will be made available to Public sector Solar Power Park developers on lease or right-to-use basis at lease rate of Rs. 1 per acre per year. This land will be non-transferrable.
  • Government land will be made available to Private sector Solar Power Park developers on lease at rate of Rs. 15000 per acre per year for a period of thirty years.
Stamp Duty : 100 % exemption from Stamp duty on the Land used for setting up Solar Power Projects/Solar Park in the entire State of Uttar Pradesh.
Capital Subsidy :  Capital State Subsidy of Rs 2.50 Crore per megawatt will be provided to Utility scale solar power projects set up with 4 hours battery storage system of 0.5 megawatt capacity or above and standalone battery storage system (energised by solar energy only ) for sale of power to Distribution licensee/ UPPCL.

Infrastructure subsidy :

  • Stamp Duty : 100% exemption on chargeable stamp duty.
  • Solar Park : State offer to purchase 100% power generated from solar park.
  • Exemptions for Large Scale Stand – alone solar projects.
  • Subsidy for Grid Connected Rooftop Solar PV Plants.
  • Subsidy for the project to be installed in villages/Majras identified by UPNEDA/State Government by the state government.

Electricity Duty Exemption :

  • Electricity Duty : 100% exemption for 10 years.
  • Green Energy corridor is being set up in Bundelkhand Region of the State to facilitate evacuation of power of 4000 MW capacity solar projects which is amenable for enhancement in capacity depending on the Private investment.

Energy Banking :

  • Banking of energy in every financial year shall be permitted up to 100% for entire useful life of Project or 25 years whichever is less.

Bio Energy Incentives :

  • Capital Subsidy : 25% for units investing upto INR 10 Cr and 20% for units investing more than INR 10 Cr and upto 100 Cr.
  • Stamp Duty : 100% exemption from Stamp Duty.
  • SGST Subsidy : 100% SGST reimbursement for 10 years.
  • Incentives for Mega projects : First 3 units only investing >INR 100 Crores are reimbursed of 15% for project cost or INR 150 Cr whichever is lesser.
  • 100% exemption in electricity duty for 10 years from the date of commercial production.
  • 100% exemption from the development charges by the development authorities.
  • Bio energy enterprises will get additional subsidy based on their production capacity, besides the policy/scheme of GoI.
  • Facility of approach road of upto max 05 km from the unit to main road for the entrepreneur investing Rs. 50 Crore or more in Bio plant.
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