Gujarat government has announced a new solar power policy for state to promote solar power generation as an alternative source of energy. The government would extend financial help to set up solar power units in the state and offer solar power generators (SPGs) at subsidized prices.

The State has huge potential for solar power energy and its Solar Power Policy, 2009 is aimed to make Gujarat as an "integrated solar power generation hub" of the country. Government would provide sops and incentives to developers of solar power projects but the policy would not cover projects assigned under the Union Ministry for Natural and Renewable Energy's (MNRE) incentive scheme.

Minister of State for Energy, Saurabh Patel said that government has relaxed norms and license terms for developers. A tariff of Rs 13 per unit for the first 12 years and Rs 3 for remaining period has been fixed for solar projects commissioned before December 31, 2010. The policy sates, "A maximum of 500 MW SPG will be allowed for installation under the operative period of the policy."

Power can be sold to Gujarat Urja Vikas Nigam Ltd (GUVNL) or distribution licensees under a power purchase agreement.