Are inter-state transmission system losses waived for solar and wind power, or only the charges?
Only the charges, in general. The Ministry of Power's order of 23 November 2021 says the waiver is for inter-state transmission system (ISTS) charges and not losses, with one exception: the waiver of losses applies to projects whose bidding was completed up to 15 January 2021. Earlier orders had waived charges and losses together.
What the orders say
- 5 August 2020: no inter-state transmission charges and losses will be levied for 25 years on solar and wind plants, including hybrids with or without storage, commissioned till 30 June 2023.
- 15 January 2021: replaces the 2020 order; charges only are waived for 25 years for solar and wind plants (including hybrids with or without storage) commissioned up to 30 June 2023 and selling to distribution licensees under competitive procurement, plus two named solar schemes. The order's subject line still says charges and losses.
- 23 November 2021, paragraph 5.0: waiver is allowed for inter-state transmission charges only and not losses. However, waiver of losses shall be applicable for the projects whose bidding was completed up to 15.01.2021.
- 1 December 2022 (hydro) and 29 May 2023 (offshore wind, green hydrogen): each says the waiver is for ISTS charges only, not losses.
How to read it for a contract
If the bid for your supplier's project closed on or before 15 January 2021, ask whether the project is in the exception. If it closed later, the order does not waive losses for it.
The general rule after the November 2021 order is that inter-state losses are still applied to your scheduled energy. The exception is for projects whose bidding was completed up to 15 January 2021, which the order names.
What the exception changes, with an assumed loss
- Scheduled at the plant: 1,000 megawatt hours in a month
- Assumed inter-state loss: 3 percent, a figure for the example only
- Project outside the exception: the loss share applies, so 1,000 x 0.03 = 30 megawatt hours is deducted and 970 remain
- Project inside the exception: losses are waived, so that 30 megawatt hours deduction is not applied
The 3 percent is not a measured loss. Use your supplier's scheduling statements for the real figure.
What Senseible does here
Senseible reads your electricity bills and fuel invoices into dated records, so the units on your bills are on file. It does not read transmission orders or tell you which projects are in the exception; that comes from the date the supplier's bidding was completed.
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Sources: Ministry of Power, orders on waiver of inter-state transmission charges, 2020 to 2025 (compiled PDF)
Last reviewed 2026-11-06. Read from the Ministry of Power orders of 5 August 2020, 15 January 2021, 23 November 2021, 1 December 2022 and 29 May 2023 in the compiled PDF, on 6 November 2026. The loss percentage in the example is assumed.