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Energy Department Proposes Lower Land Ceiling for Solar Projects, Awaits Revenue Approval – EQ

Energy Department Proposes Lower Land Ceiling for Solar Projects, Awaits Revenue Approval – EQ

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In Short : The Energy Department has recommended reducing the land ceiling for solar projects to optimize land use and promote efficient renewable energy development. The proposal is pending approval from the Revenue Department. Officials believe the move will encourage developers to adopt higher-efficiency technologies and make better use of limited land resources, while balancing environmental and agricultural considerations.

In Detail : The Energy Department has proposed a reduction in the land ceiling for solar projects, aiming to optimize land utilization and ensure sustainable renewable energy expansion. The move seeks to encourage developers to maximize generation from smaller land parcels.

Currently, solar projects are allowed to acquire large tracts of land, sometimes leading to underutilization or conflicts with agricultural and ecological priorities. The revised ceiling aims to strike a balance between energy generation and land conservation.

The proposal is now awaiting approval from the Revenue Department, which is responsible for land allocation, registration, and monitoring. Clearance from the revenue authorities is necessary before the revised norms can be implemented.

Officials have highlighted that reducing the land ceiling will push developers to adopt high-efficiency solar technologies, such as bifacial modules and tracking systems, to maximize output from limited land. This approach aligns with India’s renewable energy targets.

Smaller land requirements are also expected to ease procedural hurdles, reduce acquisition costs, and make solar projects more financially viable, especially for mid-sized and decentralized developers.

Environmental groups have welcomed the initiative, noting that limiting land use for solar projects can reduce ecological disruption, preserve biodiversity, and prevent the conversion of fertile agricultural land into solar farms.

The move may also accelerate rooftop and floating solar adoption, as developers increasingly look for alternative ways to meet capacity targets without requiring large land parcels. These solutions complement the grid-connected ground-mounted projects.

Industry analysts believe that while the new land ceiling could initially require redesigning some existing projects, it will ultimately foster innovation, efficiency, and sustainable development practices in the solar sector.

Once approved, the revised ceiling is expected to reshape land allocation norms for solar projects, guiding developers to optimize resources while meeting renewable energy commitments, thereby supporting both energy security and environmental sustainability.

Anand Gupta Editor - EQ Int'l Media Network