Uttarakhand Proposes To Hike Rooftop Solar Tariffs

Uttarakhand Proposes To Hike Rooftop Solar Tariffs

The Uttarakhand Energy Regulatory Commission (UERC) has proposed increasing the generic tariffs for rooftop solar and small-scale solar plants for the financial year 2024-25. The state power regulator has also issued a draft paper and invited stakeholders to submit their views and objections by September 30.

In its proposal, UERC cited lower solar module prices and improved technologies as reasons for increasing tariffs for power consumers. It has also reduced the benchmark costs for solar modules. The proposal includes a net tariff of ₹4.24 per kWh for solar power projects and ₹14.23 per unit for solar thermal power projects in Uttarakhand.

The commission has set a benchmark capital cost of ₹36,881/kW for solar modules for projects up to 10 kW. Last year, the commission had set the benchmark capital cost at ₹47,691/kW for similar projects. Additionally, the gross levelized tariff without subsidies was set at ₹4.64 per unit for solar projects.

“The benign policies of the Central Government and the State Governments have made it possible for local, national, and international players to participate in the Indian power markets. Such positive developments in the solar power market have resulted in healthy competition, leading to a drastic reduction in the cost of solar power generation. As a result, the end consumers of electricity benefit from a cheaper and environmentally friendly source of power generation,” UERC said in the draft proposal.

Benchmark costs of solar projects 

Last year, UERC set the benchmark capital cost for large solar projects at ₹354.11 lakh per MW. For FY 2024-25, the state power regulator has updated this price.

“The current average price of Poly Silicon Solar Module and Mono PERC Solar Module on 21.08.2024 is 0.087 USD/Watt, and the exchange rate is ₹83.78/USD. The module cost has been determined after considering customs duty and degradation costs. It is pertinent to mention that the CUF of 19% was fixed considering Poly Silicon Solar Module and Thin Film Solar Module. However, in the present Order, the Commission proposes to consider Mono PERC Solar Module, which is an advanced technology compared to Thin Film Solar Module, and results in higher CUF, which in turn reflects higher generation from the said modules,” UERC stated.