How Solar Power Works
The National Tariff Policy (NTP) 2006 requires the State Electricity Regulatory Commissions (SERCs) to fix a minimum percentage of Renewable Purchase Obligation (RPO).
The policy was amended in January 2011 to prescribe solar-specific RPO be increased from a minimum of 0.25 per cent in 2012 to 3 per cent by 2022. Further, the National Action Plan on Climate Change (NAPCC) suggests increasing the share of renewable energy in the total energy mix at-least up to 15 percent by 2020.
CERC-RE Tariff Order for FY 2013-14 dated February 28, 2013
(Source: http://www.cercind.gov.in/Misc-13.html)