Power purchase rates should be made attractive enough to lure people to use renewable sources for electricity generation. Like other independent power projects, these projects should also have an escalation clause to safeguard their investment against inflation and to provide long-term project viability.

The units should also be given assurance of payment for purchase of power by the state electricity boards, said the ministry. It added that there should be a standard power purchase agreement (PPA) for all projects. "The model draft PPA for theseprojects should be worked out by the respective state in line with the policy and should be available to all prospective developers," ministry officials said. Unlike conventional power projects, where awareness and response has been positive, states need to pay greater attention to attract developers for these projects. Guidelines for wheeling and banking should be made clear and the charges for such facilities should be nominal. States should also simplify norms for evacuation of power and interconnection facilities, officials added. So far, 12 states have already announced the policy for non-conventional energy but there are some grey areas such as banking of power and wheeling charges where project developers have sought clarifications.