Punjab government is set to launch a 40 MW canal-top solar photovoltaic project, leasing irrigation canal stretches to Punjab Energy Development Agency (PEDA) at Rs 1.5 lakh per MW per annum. 

This initiative aims to enhance renewable energy capacity and optimise land use by installing solar panels above canals, thus utilising existing infrastructure without consuming fertile land. Punjab, with over 1,400 MW of installed solar capacity, targets 3,000 MW by 2030, aligning with India’s national goal of 500 GW clean energy. The project will be developed on a build, operate, and own basis under PEDA’s supervision, with power sold to Punjab State Power Corporation at Rs three per unit, subject to regulatory approval. Developers can bid for a minimum one MW capacity.

The Water Resources Department retains canal land ownership and charges a 1.5 paise per unit cess on generated power, promoting sustainable dual-use of canal infrastructure for irrigation and clean energy generation.