Karnataka Extends Validity Of Existing Tariff Structure for Solar Projects till 31st March

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The Karnataka Electricity Regulatory Commission (KERC) has recently passed an order regarding  extending the validity of the existing tariff structure determined by the Commission in August 2019.

The commission orders that the tariff of solar power projects including roof top is extended for one year from 1st April 2020 to 31st March 2021.

The above tariff order will be applicable for all new solar projects for which power purchase agreements (PPAs) are entered into on or after 1st April 2020.Order mentioned  that the other content of the order remains un altered.

The Commission, vide its Order dated 01 .08.2019 had determined levelized tariff for grid connected megawatt scale solar power projects of less  than 5 MW capacity at Rs.3.08 per unit; for grid connected 3olar Rooftop Photovoltaic projects of 1 kW lo 2000kW at Rs. 3.07 per unit (without capital subsidy) and at Rs.2.32 only per unit (with capital subsidy]; and for grid connected Solar Rooftop Photovoltaic projects of 1 kW to 10 kW for domestic consumers at Rs.3.99 per unit (without capital subsidy) and at Rs.2.97 per unit (wifh capital subsidy); applicable for the life of the projects, i.e. for 25 years.

These tariffs were applicable to all such new solar power projects for which PPAs are entered into and approved by the Commission, after the date of issue of the said Order and also those which achieved commercial operation on or offer 0 .04.2015. This Order was in force till 31.03.2020.

As on 31.01.2020, the State has an installed Solar Power Generation capacity  of 5735.14MW (Source from KREDL) in both Grid Connected ground mounted solar photovoltaic and rooftop solar photovoltaic plants. However the investment in solar rooftop installations out  of the above capacity, the installed  capacity  of SRTPV  plants is only 240. 14 MW (Source from KREDL) as of March 2020.

Recently, Central Electricity Regulatory Commission (CERC) issued an order in the matter of SECI against four respondents (Ministry of New and Renewable Energy, Adani Renewable Energy Park (Gujarat) Limited, Punjab State Power Corporation Limited, India Power Corporation Limited) for the adoption of tariff for 600 MW (out of 1200 MW) Wind- Solar Hybrid Power Projects (Tranche-II) connected to the Inter-State Transmission System and selected through a competitive bidding process.It sanctioned tariff rate Of 2.69 kWh for Wind- Solar Hybrid Power Project.

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