Solar Power Projects :
Punjab has considerable sun shine available for more than 330 days in a year with good insolation levels. This energy can be utilised for generation of power during the day time and also during night by storage options. Punjab has been meeting its electrical power requirements primarily through conventional thermal and hydro power generation. Cost of generation from coal continuous to escalate and more over it is polluting. The State is endowed with vast potential of solar energy estimated at 4-7 KWH / Sq mtr of solar insolation levels and the Government is keen to tap this resource for strengthening power infrastructure in the State by setting up Solar energy based power projects Solar Power Projects has the following inherent advantages over thermal power generation : Power Projects has the following inherent advantages over thermal power generation :

• It is environment friendly and carbon neutral.
• It displaces fossil fuels such as coal, oil and gas.
• It is decentralized, because it is produced and consumed locally, losses due to transmission and distribution are negligible .
• It has low gestation period and photovoltaic systems are modular in nature.

• To promote manufacturing and sale of NRSE devices/ systems, and equipments / machinery required for NRSE Power Projects, Value Added Tax (VAT) shall be levied @ 4%.
  
  
• Octroi : on energy generation and NRSE devices/ equipment/ machinery for NRSE Power Projects shall be exempted. 
  
  
• Wheeling : The PSEB/LICENSEES will undertake to transmit through its grid the power generated from NRSE projects set up inside
  or outside the State and make it available to the producer for captive use in the same company units located in the state or third party sale within the State at a uniform wheeling charge of 2% of the energy fed to the grid, irrespective of the distance from the generating station.
  
  
• Sale of power :. Power generation from Solar Energy Projects- Rs. 7.00 per unit (Base Year 2006-07) with five annual escalations @ 5% upto 2011-2012.
  
  
• Banking: The banking facility for the power generated shall be allowed for a period of one year by the PSEB/ Licensees.
  
  
• Exemption from Electricity duty:  The Power Generation from NRSE projects shall be exempted from levy of Electricity Duty.

1. PSEB/ Licensees will accept the injection of energy in full during sustained high frequency hours to ensure full utilization of non-conventional energy resources.

PSEB/ Licensees will provide facility of irrevocable and revolving, Letter of Credit issued by any nationalized bank. The amount of the Letter of Credit shall be equal to the bill amount of one month on the basis of average of last three months.  All expenditures on Letter of Credit shall be borne by the power producers.

SPV Power Plants allocated to Various Companies under Phase - I

 Total = 8 sites, Capacity 49MW                                        Levelised tariff Rs. 8.79 / Unit matched as per NRSE Policy-2006.