Telangana's Clean and Green Energy Policy Aims to Add 20,000 MW Capacity by 2030

The Telangana State government has unveiled its ambitious 'Telangana Clean and Green Energy Policy,' aiming to add 20,000 MW to its existing 11,000 MW of renewable energy and storage capacity by 2030.

This bold initiative is expected to attract investments worth INR 1.98 lakh crore and generate approximately 1.14 lakh jobs over the next decade. The policy, which was approved by the State Cabinet under Chief Minister A. Revanth Reddy, places a strong emphasis on promoting floating solar projects, especially utilising the State's abundant reservoirs. The policy facilitates the allotment of water bodies to public sector units and joint ventures, with provisions for third-party or private usage at a nominal one-time fee of INR 1 lakh per acre for a lease period of 25 years.

The policy also focuses on encouraging rooftop solar installations on government properties, schools, and Indiramma houses, which are designed to provide low-cost housing to the poor. Furthermore, the government plans to incentivise self-help groups (SHGs) to establish decentralised solar power plants ranging from 500 kW to 2 MW, empowering communities to generate their own clean energy.

Incentives included in the policy are designed to make renewable energy projects more attractive and financially viable. These include a 100 percent stamp duty reimbursement for land purchases related to renewable energy projects, ensuring reduced upfront costs for developers. Additionally, capital subsidies will be provided based on the Fixed Capital Investment (FCI), with the subsidy being disbursed over five years from the project’s commercial operation date.

In a bid to further boost the renewable energy sector, the Telangana government has introduced a set of additional incentives aimed at reducing the financial burden on developers. These include a full reimbursement of the State goods and services tax (SGST) for decentralised grid-connected solar and wind projects developed by SHGs, as well as for rooftop solar installations.

For other renewable energy projects such as power purchase supply (PSPS) agreements, Battery Energy Storage Systems (BESS), and waste-to-energy projects, the government will reimburse 50 percent and 100 percent of SGST, respectively, ensuring that these projects benefit from substantial financial relief.

To facilitate the development of BESS projects, the government is offering land at a nominal lease rate, just 10 percent of the market value, with a 5 percent escalation every two years throughout the duration of the power purchase agreement. This affordable land provision is aimed at making BESS projects more economically feasible.

In addition, the Telangana government is focusing on women’s empowerment and local employment generation. A 10 percent investment subsidy is being provided for women-led businesses in the renewable energy sector, with a maximum cap of INR 10 lakh. Moreover, companies that employ at least 50 local Telangana residents within two years of starting operations in solar, wind, BESS, hydrogen fuel cell, or electrolysis manufacturing will be eligible for recruitment assistance of up to INR 5 lakh.

The government is also offering a 50 percent SGST reimbursement for other solar energy projects that are not covered under the 100 percent reimbursement category, ensuring broad support for various solar initiatives across the State.

With these comprehensive incentives, the Telangana government is reinforcing its commitment to renewable energy growth, creating local employment opportunities, and positioning itself as a leader in India's transition towards sustainable energy solutions.