Ministry of Power exempts interstate supply charges on solar energy

The central government has removed interstate supply charges to encourage the use of solar energy, this exemption will remain effective till the end of 2019. This step is taken to maintain the solar consumption rate at par with the thermal electricity rates.

The decision was announced by the Ministry of Power in consultation with Ministry of New and Renewable Energy. With the interstate supply charges in action, the cost of solar energy increased by Rs.1-2.5 per KwH depending on the transmitted distance and supplied voltage.

The government has already exempted the interstate supply charges, however, the exemption was about to end on June 30, this year. In the last few years, solar energy has come out as a great alternative to the thermal energy and the prices have become as less as Rs 2.4 per unit. However, removing the exemptions might increase the prices again, affecting the consumed volume.

This initiative will benefit states like Rajasthan, who have the capacity to produce more energy than their requirement. This exemption will make it easier and more feasible to export it to other states without adding any additional costs.

Waiving transmission charges will generate income and employment in Rajasthan and benefit other states as well. The government has set itself a goal of 100,000 MW of installed solar power by 2022 and has currently reached only 12,504 MW (end April).