Punjab Govt taps solar power; at 1/3rd cost of earlier Govts

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Last Updated: 28 September 2026

Apr 2026 (4-year Power report card): 2,720 MW solar contracted at ₹2.33–₹2.97/unit; 658 MW commissioned & 2,062 MW under implementation; 581 MW rooftop solar installed (up from 157 MW in 2022)[1]
-- Target: raise green energy share from 20% to 80% in 6 years[1:1]

Impact till Jan 2024

-- 2.4x increase in total solar energy production
-- 36% Drop in Average Cost: Signed Solar Power PPAs at avg cost of ₹2.51/unit[2]

Cumulative installed capacity for Punjab: 2,574 MW till Dec2024[3]
-- 40% i.e. 1000+ MW under AAP Govt
-- Additional ~3000 MW are under commissioning

During Earlier Govts, average cost of solar power is ₹6.50/unit[2:1]

Details: March 2022 to October 2024[3:1]

  • Cost expected to drop to Rs 4.24 per unit by 2024-25 from Rs 6.59 per unit in 2021-22
  • Total installed capacity (including from outside-state contributions) increased from 1,556 MW to 2,574 MW
  • Rooftop Solar Installations: Installation capacity increased from 157 MW to 430 MW till Dec 2024[4]
Year Solar Energy units produced
2021-22 1,493 million units
2022-23 2,729 million units
2024-25 (expected) 3,629 million units

Signed PPAs and Comparison with Earlier Govts

Govt Power PPAs Cost Process
Congress/Akali/BJP 1,266.6 MW[2:2] ₹6.50/unit NO bidding
AAP 3704 MW[5] ₹2.33 to ₹2.76/unit 1. Reverse bidding
2. Fixed Max Price
AAP 264 MW[4:1] (66 solar plants; 4 MW capacity each) ₹2.38/unit Bidding with 25 year contract
AAP 900 MW[4:2] (Hybrid Solar + Wind) ₹3.22 - ₹3.28/unit
AAP 1,950 MW[6] ₹2.48 -₹2.60/unit 25 Year contract in April 2025
AAP 400 MW[6:1] ₹2.97 per unit 25 Year contract in April 2025

References:

  1. https://www.oneindia.com/india/punjab-power-dept-turns-profitable-despite-free-power-to-90-homes-for-4-years-says-cm-bhagwant-man-011-8050349.html (CM's Power sector report card, 7 Apr 2026) ↩︎ ↩︎

  2. https://www.hindustantimes.com/cities/chandigarh-news/punjab-taps-solar-power-to-bring-down-purchase-cost-101704820640939.html ↩︎ ↩︎ ↩︎

  3. https://www.tribuneindia.com/news/schools/now-punjab-aims-for-a-green-energy-revolution/ ↩︎ ↩︎

  4. https://yespunjab.com/punjab-goes-green-66-solar-power-plants-to-reduce-reliance-on-fossil-fuels-aman-arora/ ↩︎ ↩︎ ↩︎

  5. https://www.babushahi.com/full-news.php?id=196905 ↩︎

  6. https://yespunjab.com/punjab-inks-over-2400-mw-of-solar-deals-at-lower-tariffs-harbhajan-singh-eto/ ↩︎ ↩︎

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