HERC Sets Tariff For 10.72 MW Sirsa Solar Project At ₹2.50/kWh, Approves 12.20 MW DC Capacity In Haryana

The Haryana Electricity Regulatory Commission (HERC) has issued a key order setting the project-specific tariff for a 10.72 MW solar power project in Sirsa, Haryana, developed by Greenyana Solar Pvt. Ltd. (GSPL). The decision comes after a remand from the Appellate Tribunal for Electricity (APTEL), which asked the Commission to reconsider certain capital costs linked to the project’s solar modules and to review potential errors in previous tariff calculations.

The main issue revolved around the “AC: DC ratio” of the solar plant. The project has a contracted AC capacity of 10.72 MW, but the developer argued that a higher DC capacity, meaning more solar modules, was necessary to achieve the state-mandated 21 percent Capacity Utilization Factor (CUF). Initially, HERC had only recognized a 1:1 ratio, which limited the capital costs to the AC capacity of 10.72 MW. Greenyana Solar pointed out that with this ratio, the project could only reach a CUF of around 17.01 percent, which would not meet the required 21 percent target.

During the proceedings, the Haryana Power Purchase Centre (HPPC) opposed the developer’s claims, arguing that the requested capital costs were too high and that the project should be benchmarked against similar solar plants in the region. After reviewing the matter carefully, HERC decided to adopt a middle path. Instead of fully approving the developer’s proposed ratio, the Commission referred to a benchmark from a similar case in District Bhiwani and concluded that a DC capacity of 12.20 MW was reasonable. This adjustment would allow the 10.72 MW AC project to achieve the 21 percent CUF target while keeping costs under control.

The financial calculation of the tariff was also reviewed. The developer had claimed that the original tariff of Rs. 2.35 per unit contained a computational error and should have been Rs. 2.62 per unit. However, HERC upheld its original methodology, ruling that there was no error in the way the levelized tariff had been calculated. After considering all aspects, the Commission determined a final levelized tariff of Rs. 2.50 per unit for the 25-year life of the project.

Because an interim tariff had been in place during the appeal, the Commission directed state utilities to pay the differential amount to the developer within one month. To compensate for the delay, HERC also ordered interest at a rate of 9.58 percent per year on the outstanding amount. The ruling aims to ensure that renewable energy developers remain commercially viable while safeguarding the interests of electricity consumers in Haryana.

This order highlights the careful balancing act regulators perform between promoting renewable energy investment and controlling the cost burden on consumers. By addressing both the technical and financial concerns raised in the appeal, HERC has provided clarity on project-specific tariffs and set a precedent for handling similar cases in the future. The decision is expected to support fair compensation for developers while maintaining regulatory oversight over renewable energy projects in the state.