Energy Federation requests to extend the time limit for fee exemption for solar industry

The National Solar Energy Federation of India has requested the government to extend the time limit for exemption on interstate fee (Interstate Transmission System -ISTS) for renewable energy projects to meet the target of India’s solar energy sectors. Currently, the fee has been waived for 25 years for green schemes started before 30 June 2025 and battery, solar energy and pump storage projects. But the National Solar Energy Federation of India says that there is a need to consider giving exemption in the fee for schemes starting after 2025.

Benefit of tariff to the end consumer

Federation officials say that ISTS exemption will not only expand new energy capacity but also reduce the cost of electricity in comparison, in which the benefit of tariff reaches the end consumer. In view of this, India has set a target of 500 gigawatt renewable energy by 2030. Currently, the ISTS fee is Rs 0.80-1.20 per unit, which according to the industry is one-third of the solar tariff and one-fourth of the hybrid tariff. They say that the next six months will be very important for India to meet the target of ambitious renewable energy projects and the exemption will prove helpful in achieving the target. It has been recommended to the government that the ISTS exemption should be extended to all renewable energy projects including useful hybrid, open access and green hydrogen.