In today’s energy landscape, where electricity costs are soaring and sustainability is no longer optional, commercial and industrial building owners in Gujarat are turning to solar power as a reliable solution. For factories and commercial establishments, installing solar plants not only reduces operational expenses but also aligns with India’s push towards renewable energy. Enter the Akshay Urja Setu program by Gujarat Urja Vikas Nigam Limited (GUVNL) which is a revolutionary initiative designed to simplify and accelerate solar installations for businesses. Launched in 2024, this single-window clearance system is transforming how commercial entities adopt solar energy, making it easier, faster, and more cost-effective than ever before.
What is the Akshay Urja Setu Program?
The Akshay Urja Setu is Gujarat’s dedicated online portal for streamlining approvals and processes related to renewable energy projects, including solar installations. Managed by GUVNL, it serves as a one-stop platform where developers and business owners can apply for clearances, grid connectivity, and power purchase agreements (PPAs) without the hassle of multiple departments. This program is part of the broader Gujarat Renewable Energy Policy 2023, which aims to boost the state’s renewable capacity to 100 GW and beyond.
For commercial solar projects, the focus is on distributed renewable energy installations up to 5 MW. Key highlights include waiving the Domestic Content Requirement (DCR) for solar modules, allowing procurement without competitive bidding, and enabling direct bilateral purchases by distribution companies (DISCOMs). This means businesses can source high-quality components globally, reducing costs while maintaining efficiency.
To get started, visit the official Akshay Urja Setu portal
Key Benefits for Commercial and Factory Owners
The Akshay Urja Setu program offers a host of advantages tailored for commercial solar installations, making it a true game-changer:
- Streamlined Application Process: Gone are the days of bureaucratic delays. Applications are handled on a first-come, first-served basis through the portal’s “Distributed Renewable Energy Bilateral Purchase” category. This simplifies grid connectivity and approvals, cutting down project timelines significantly.
- Cost Savings and Fixed Tariffs: Solar projects under this scheme qualify for a levelized tariff of ₹2.76 per kWh, with an option for Accelerated Depreciation (AD) benefits that reduce the tariff by ₹0.28 per kWh, enhancing your return on investment (ROI). For factories with high energy demands, this translates to substantial long-term savings on electricity bills.
- Flexibility in Sourcing: The DCR waiver allows you to import solar modules from international suppliers, potentially lowering upfront costs while ensuring top-tier quality under the Approved List of Models and Manufacturers (ALMM).
- Long-Term Security: PPAs can extend up to 25 years, providing stable revenue through energy sales to DISCOMs. Plus, the generated power contributes to the state’s Renewable Purchase Obligations (RPO), adding an environmental edge to your business.
- Environmental and Operational Perks: By installing solar, commercial owners can reduce grid dependency, achieve energy independence, and earn carbon credits (though not claimable by DISCOMs under this scheme). This aligns with Gujarat’s green goals and enhances your brand’s sustainability profile.
Note – Our team can help you to decide which option is best for you. Contact Us
Eligibility and How to Apply
To qualify for the Akshay Urja Setu program:
- Your solar project must be between 500 kW and 5 MW.
- Use new plant and machinery; existing PPAs or net-metered setups are ineligible.
- Projects must connect to a single substation via dedicated transmission lines.
The application process is straightforward:
- Register on the Akshay Urja Setu portal with a non-refundable fee of ₹10,000 per MW.
- Apply for grid connectivity within one month of provisional registration from the Gujarat Energy Development Agency (GEDA).
- Submit a performance bank guarantee of ₹1 million per MW.
- Commission the project within 12 months of signing the PPA.
Delays may result in fee forfeiture, so timely action is key. For step-by-step guidance, refer to the official GUVNL website
Financing Options and Government Schemes
While the program doesn’t offer direct state subsidies, it integrates with national incentives like the PM Surya Ghar Muft Bijli Yojana for rooftop solar (up to ₹78,000 subsidy for smaller systems) and tax benefits under Accelerated Depreciation. Commercial owners can explore low-interest loans from banks or Power Purchase Agreement (PPA) models for zero upfront costs.
For broader policy details, visit the Gujarat Energy and Petrochemicals Department
Why This Program is a Game-Changer
For factory and commercial building owners in Gujarat, Akshay Urja Setu eliminates traditional barriers like complex approvals and high domestic sourcing costs, paving the way for rapid solar adoption. Imagine slashing your energy bills by up to 50% while contributing to Gujarat’s ambitious 100 GW renewable target. Businesses that act now can secure competitive tariffs and position themselves as leaders in sustainable manufacturing.
Ready to Go Solar?
If you’re a commercial or factory owner in Gujarat looking to harness the power of the Akshay Urja Setu program, Akuntha Projects Private Limited is here to help.
As an experienced EPC company specializing in solar plant installations, we handle everything from design to commissioning. Contact us today for a free consultation and let’s build a brighter, greener future together.
