Solar Power Plants to Be Set Up on Government Land in 100 Panchayats

Green Panchayat Scheme notified; each project to have 500 kW (AC) ground-mounted capacity

The Himachal Pradesh government has notified the Green Panchayat Scheme, under which solar power plants will be installed on barren or unused government land across 100 panchayats. Revenue generated from these projects will be directed toward green initiatives and local development works.

The scheme is part of the state’s effort to harness its abundant solar potential and achieve the goal of becoming a “Green Energy State” by 2026. Each selected panchayat will host a 500 kW (AC) ground-mounted solar power project.

The income generated from solar power will be utilized for initiatives such as rooftop solar installations on government buildings, restoration of natural water bodies, deployment of solar-powered irrigation pumps, afforestation and plantation drives, as well as waste collection and disposal systems.

A key objective is to promote decentralized power generation near consumption points, reducing transmission and distribution losses, improving energy access in remote rural areas, and strengthening the local economy.

Under the scheme, 30% of the revenue from power sales will go directly to panchayats, to be spent on development activities. If the selected land belongs to a gram panchayat, it will issue a No Objection Certificate (NOC). Himurja (the state energy agency) will prepare Detailed Project Reports (DPRs) and invite contractors for project implementation.

In line with the central government’s renewable energy targets, Himachal Pradesh has been assigned a goal of 1,995 MW solar capacity by 2030. Site selection for these plants will be based on criteria such as south-facing orientation, a minimum of one hectare of clear land, minimal tree cover, and preferably proximity within 500 meters of an 11 kV transmission line.

Revenue from the projects will be shared as follows:

• 20% to the state government,
• 20% to Himurja for operations and maintenance,
• 10% to Himurja as its revenue share,
• 30% to panchayats for local development,
• 20% to panchayats for financial assistance to widows and orphans within their jurisdiction.

The plants will be operated and maintained by Himurja for five years, after which it will continue managing them for the next 20 years. Power will be sold to the Himachal Pradesh State Electricity Board (HPSEB) under a Power Purchase Agreement (PPA) at tariffs approved by the state electricity regulator. Himurja will also enter into a connectivity agreement with HPSEB.

“This scheme ensures that revenue from solar energy is reinvested into community development and green initiatives,” a government spokesperson said.