Rajasthan, the state with the highest solar-power potential in the country, has decided to levy an additional cess on all existing and future solar power projects in the range of Rs 2.5-5 lakh per megawatt per year.
In its latest draft Solar Energy Policy, the state has also proposed a five-fold increase in registration fees. This is likely to increase project costs and renewable power tariffs in the state, which enjoys low rates due to high solar irradiation.
The new Rajasthan Solar Energy Policy-2019, which will replace the 2014 version, has introduced Rajasthan Renewable Energy Development Fund (REDF) for promotion of solar energy in the state. Ironically, the state is levying the cess on solar power projects for the fund.
