Karnataka Proposes New Tariffs For Rooftop Solar Projects

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The Karnataka Electricity Regulatory Commission (KERC) in its latest order has proposed revised tariffs for the state for FY25 for grid-connected solar plants. This comes after the state power regulator came out with a discussion paper on the issue recently. 

To arrive at the final tariffs for different segments of power generators and consumers, the state commission determined the levelized cost of solar power production, Operations and Maintenance (O&M) charges, depreciation and other aspects. The Commission in the same order also issued tariff for the MW-scale solar power projects in the state. 

As per the final order of the Commission, the KERC decided to fix the tariff for grid-connected MW-scale solar power projects at an approved benchmark tariff of Rs 3.04 per unit. It also fixed the tariff of grid-connected MW-scale solar power projects with Battery Energy Storage Systems (BESS) with an approved benchmark price of Rs 5.66 per unit. 

Regarding rooftop solar projects, the tariffs were fixed based on the size of plant, ownership and the subsidy arrangement. For example KERC fixed the tariff for grid-connected rooftop solar projects of 1 KW upto the sanctioned load (excluding domestic 1 KW to 10 KW) at Rs 3.20 per unit without subsidy. 

Meanwhile, the state power regulator fixed the tariff for grid-connected rooftop solar projects of 1 KW to 10 KW for domestic consumers at an approved tariff of Rs 3.79 per unit without capital subsidy.

However, the Karnataka electricity regulatory proposed one of the lowest tariffs for rooftop solar projects under the PM Surya Ghar scheme. As per the KERC order, for grid-connected rooftop solar projects, the tariff for such solar units from capacity of 1 Kw to 2 KW the approved tariff will be Rs 2.25 per unit with capital subsidy and for capacity above Rs 2 KW upto 3 KW the approved tariff stood at Rs 2.43 per unit with capital subsidy and for projects above 3 KW the approved tariff stood at Rs 2.62 per unit with capital subsidy.

These tariff will be applicable for all the new solar power projects for which PPAs were signed ion or after April 1, 2024.  The tenure of the PPA will be for 25 years, KERC said.