RERC Approves Tariffs For 488 MW Solar Projects Under PM-KUSUM Feeder Level Solarization In Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has issued an order in Petition No. 2336/2025 filed by Jodhpur Vidyut Vitran Nigam Limited (JdVVNL) seeking approval of the levelized tariff discovered through competitive bidding for solar power plants under Component-C of the PM-KUSUM scheme. The petition covered an aggregate capacity of 513.5 MW for feeder-level solarization projects intended to meet the annual power needs of agriculture feeders. The matter was heard on July 8, 2025, and the final order was issued on September 3, 2025

As per the scheme guidelines, feeder-level solarization allows setting up grid-connected solar power plants near substations to supply power to segregated agriculture feeders. The Ministry of New and Renewable Energy (MNRE) provides central financial assistance for solar capacity linked to 7.5 HP pumps, while larger pump capacities are adjusted to this level for calculation purposes.

JdVVNL floated a tender TN-DSM-82 for 234 solar PV plants with a total capacity of 513.5 MW across 144 substations, benefiting around 40,570 agriculture consumers. The projects were taken up in RESCO mode, where developers are responsible for survey, design, supply, installation, commissioning, and 25 years of operation and maintenance. Developers also had to arrange land lease agreements with farmers or landowners for 25 years, providing them with assured lease rentals. This model not only promotes clean energy but also supports farmers through regular income from land leasing.

During the bidding process, Letters of Intent (LoIs) were issued for 228 plants, of which six were not accepted by bidders. Finally, JdVVNL sought approval for tariffs of 222 plants with a combined capacity of 488 MW. The Commission noted that transparent procedures had been followed and that tariffs discovered were market-aligned. It approved the adoption of the levelized tariffs for these projects.

The Commission also stressed the importance of proper system studies to ensure smooth integration of distributed solar power with the grid. It directed the Discoms to continue carrying out load flow studies and to explore the possibility of grouping multiple substations in future tenders to achieve economies of scale. It also reiterated the requirement to use domestically manufactured modules wherever applicable, in line with MNRE’s domestic content rules.

This order adds to Rajasthan’s ongoing efforts under the PM-KUSUM scheme. As of May 2025, JdVVNL had already awarded projects totaling 2,991 MW across 1,136 plants, of which about 505 MW had been commissioned, solarizing over 22,800 agriculture pumps.

With this approval, another 488 MW of capacity is set to move forward, strengthening Rajasthan’s position as a leader in feeder-level solarization. The projects will provide clean power to agriculture, reduce the subsidy burden on Discoms, and give farmers a dual benefit of reliable power and land-based income. The Commission highlighted that with more such projects, the state must also plan for grid balancing measures, including storage, to ensure long-term sustainability.