Himachal Pradesh Sets New Solar Tariffs For 2026-27, Ranging From ₹3.34 To ₹3.52 Per Unit To Boost Renewable Energy

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued a new order that sets standard prices, called generic levelized tariffs, for solar power projects in the state for the 2026-2027 fiscal year. The main goal of this order is to promote renewable energy while ensuring electricity rates remain fair for both producers and consumers.

Under the new order, solar projects are classified based on their size and location, which determines the tariff they can charge for the electricity they generate. For projects located in rural or non-industrial areas, the rates are set at ₹3.47 per unit for projects up to 1 MW in capacity. Projects between 1 MW and 3 MW will receive ₹3.40 per unit, while those between 3 MW and 5 MW will be charged ₹3.34 per unit.

For projects in urban or industrial areas, slightly higher rates have been proposed. Small projects up to 1 MW will receive ₹3.52 per unit, projects between 1 MW and 3 MW will get ₹3.46 per unit, and projects between 3 MW and 5 MW will be charged ₹3.40 per unit. These rates are intended to reflect the cost of developing and operating solar plants while also encouraging developers to invest in different types of locations.

The Commission considered several factors while deciding the tariffs. One key factor is the cost of solar modules, which can fluctuate due to market trends and technological advancements. For the upcoming fiscal year, HPERC has set a standard project cost of around ₹335.79 lakh per megawatt for larger projects. Smaller projects, which often face higher initial costs, will have adjusted rates.

The order also outlines financial parameters for developers. It assumes a project lifespan of 25 years, a debt-to-equity ratio of 70:30, and a 14% return on equity. Operation and maintenance costs are estimated to start at ₹10.96 lakh per megawatt and are expected to rise slightly each year to account for inflation.

These tariffs will apply to solar projects whose power purchase agreements are filed between April 1, 2026, and March 31, 2027, as long as they are operational by March 2028. However, projects above 5 MW are not covered under this order and will need to sell power through competitive bidding. Similarly, small rooftop solar systems for individual households are not included.

HPERC is inviting comments and suggestions from the public and industry stakeholders on the proposed tariffs. All feedback must be submitted by February 10, 2026. This consultation process is intended to ensure that the final tariffs are well-informed, balanced, and supportive of Himachal Pradesh’s goals for clean energy development.

The new order is seen as a step forward in promoting solar energy in the state, encouraging investment in both rural and urban areas, and ensuring that electricity remains affordable while supporting sustainable growth.