The central government has been promoting clean energy for a while now. In its latest bid to encourage the use of solar energy, the government has removed interstate supply charges. This notification will remain in effect till end of 2019. This is done in order to get the solar consumption rate at par with the thermal rates.
The decision was announced by the ministry of power. It comes after the consultation with ministry of new and renewable energy. With the interstate supply charges in action, the cost of solar energy increase by ₹1-₹2.5 per KwH. It also depends on the transmitted distance and supplied voltage.
The government has already exempted the interstate supply charges, however, the exemption was about to end on June 30th this year. In the last few years, solar energy has come out as a great alternative to the thermal energy and the prices have become as less as ₹2.4 per unit. However, removing the exemptions might increase the prices again, affecting the consumed volume.
This move also comes in picture for states like Rajasthan. Who have the capacity to produce way more energy than their requirement. This exemption will make it easier and more feasible to export it to other states, without adding a lot of additional costs.