GERC Approves Gujarat Discoms’ Plan To Convert Off-Grid Solar Pumps To Grid-Connected Systems In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has approved a joint petition filed by four state distribution companies—PGVCL, UGVCL, MGVCL, and DGVCL—along with GUVNL, seeking the implementation of two Government Resolutions (GRs) issued by the Government of Gujarat on 8 July 2022 and 17 April 2023. These GRs aim to provide regular electricity connections and convert existing off-grid standalone solar pump sets into grid-connected solar pump sets for farmers under the jurisdiction of state-owned DISCOMs.

Under the earlier scheme from 2014 to 2018, 12,742 off-grid solar pump sets were installed in areas not accessible by the DISCOM grid. Farmers who participated had at least one acre of agricultural land and contributed ₹1,000 per HP (for SC/ST) or ₹5,000 per HP (for others). The ownership of the pump sets was initially with the DISCOMs for five years, after which it was transferred to the farmers.

The new GRs now allow these pumps, upon completion of the five years, to be connected to the grid if they are within 1 km of the existing 11 kV or LT network. Farmers opting for conversion must install equipment like grid-tie inverters and other necessary components at their own cost. Once connected, any surplus solar energy injected into the grid will be purchased by the respective DISCOMs at a rate of ₹1.75 per unit, and the farmers will be charged regular agricultural tariffs if they draw net energy from the grid. The Commission has approved this rate, citing its alignment with the Solar Tariff Order dated 8 May 2020 and the significant government subsidy support involved.

The scheme also provides a one-time subsidy from the Government of Gujarat for infrastructure such as transformers, electric lines, and metering systems. To avail of the scheme, farmers must maintain the solar systems for five years from the release of the normal electricity connection.

The petition was opened for public feedback in January 2024. Gujarat Krushi Grahak Suraksha Sangh (GKGSS) submitted objections, including concerns over the eligibility period (suggesting a reduction from five to three years), the low purchase price for surplus energy (suggesting Rs. 3.50 per unit instead of Rs. 1.75), and the contract term (proposing 10 years instead of 25). However, the Commission rejected these objections, stating that the conditions were consistent with the central government’s PM-KUSUM Scheme and that the 25-year contract term aligned with the typical life span of solar installations.

In conclusion, GERC has approved the proposal to procure surplus energy from solar pump sets at ₹1.75 per unit and to charge the regular agriculture tariff for net energy drawn, effectively implementing the GRs across the four DISCOMs in Gujarat. The order was passed on 25 July 2025 in Gandhinagar.