Rajasthan Electricity Regulatory Reviews Tariff Under KUSUM-A Scheme Amid Falling Solar Project Costs

The Rajasthan Electricity Regulatory Commission is currently reviewing an important petition concerning the tariff under the KUSUM Component-A scheme. The petition, numbered RERC/2279/2024, has been submitted by Rajasthan Urja Vikas & IT Services Limited, and it requests a reassessment of the tariff structure that was previously determined. The petition has been filed under the relevant sections of the Electricity Act, 2003, and the RERC regulations. The main reason behind this request is the significant change in market conditions, which the petitioner claims has led to a noticeable reduction in the overall cost of solar projects. In particular, the petition mentions that the price of non-DCR solar modules has decreased, which has resulted in lower project costs for small-scale solar installations under the KUSUM scheme. The review also follows a direction issued by the Commission earlier on January 27, 2023.

The matter is currently under examination before a Coram led by Dr. Rajesh Sharma, Chairman of the Commission, and Member Shri Hemant Kumar Jain. Representing the petitioner is Advocate Sh. Kartik Seth. There are several respondent parties since the decision has widespread implications for many solar developers participating in the scheme. The main respondents include Kisan Urja Hitkari Samiti and the Rajasthan Renewable Energy Corporation Limited, as well as a large number of Solar Power Generators. Advocate Ms. Susan Mathew is appearing on behalf of the Kisan Urja Hitkari Samiti and the group of Solar Power Generators. These include firms such as M/s Bhanu Solar Generation, Bhuri Solar Power, Devendra Kumar Choudhary, M/s Karni Solar Pvt. Ltd., M/s Khinchar Solar Energy Enterprises, Kesholal Solar Power Plant, Sonadevi Solar Power Energy Pvt. Ltd., Shree Dayal Renewable Energy Pvt. Ltd., M/s Temderai Construction Company, and M/s Ummed Singh.

There are also many individual representatives and additional companies involved, such as M/s Kalka Solar Enterprises, Manoj, Kanaram Goyal, Arjun Singh, Kamal Singh, and others. The involvement of such a large and diverse group highlights the importance of the tariff decision because the tariff under the KUSUM Component-A scheme is a guaranteed revenue source for these decentralized solar power generators. Any modification in the tariff will directly impact their financial planning and project viability. At the same time, the tariff decision affects consumers across the state, since lower project costs may justify lower tariffs, benefiting end users.

The Commission has already held multiple hearings on the matter. Hearings took place on January 23, 2025, July 8, 2025, and September 26, 2025. These repeated hearings indicate that the Commission is taking a detailed and careful approach. The regulatory process is focused on examining real cost trends in the market and the claims put forward by the petitioner. The final decision of the Commission will need to balance two sides—ensuring fair returns for developers who have invested in renewable energy facilities, and at the same time protecting the interests of the electricity consumers of Rajasthan. The decision that the Commission will make after completing its review will be significant for the future of the KUSUM Component-A scheme. It will determine whether the reductions in project cost should result in revised tariffs and how any benefits from falling equipment prices should be shared. The order is expected to guide the regulatory direction for decentralized renewable energy in the state and could have long-term implications for investment patterns and solar adoption across rural areas.