The Kerala Cabinet has approved a draft Solar Energy Policy of the state.

The policy seeks to raise the installed capacity of the solar sector to 500 MW by 2017 and 1,500 MW by 2030.

As per the draft policy, land suitable for development of solar installations, in possession of either state government or private individuals, will be identified. Such identified lands shall be offered to developers for grid connected solar installations. Lease rentals fixed by the revenue department shall be payable to the land owner. Only lands which do not have an immediate productive use shall be thus identified.

In the case of offsite commercial installations, the State Electricity Regulatory Commission will notify the normative feed-in tariff of solar power for procurement by state power utility.

Meanwhile, the policy also provides special feed-in tariff which refers to payments made out to ordinary energy users for renewable electricity generated by them. Special feed-in tariff will be made applicable for consumers with monthly consumption of 30 units and below.

For off-grid systems, the policy seeks to ensure bank finance at attractive rates and provide generation-based incentives. Existing capital subsidies shall be restructured appropriately.

For grid connected systems, the state government will initiate a programme by which all public buildings are provided with generation facilities using appropriate technology options.

The policy also urges all concerned to make use of their premises and rooftops to install solar plants to match maximum demand within a period of two years.