KSERC Upholds INR 3.26 APPC Rate, Rejects Rooftop Solar Prosumers’ Appeal In Kerala

The Kerala State Electricity Regulatory Commission (KSERC) has rejected a petition filed by rooftop solar prosumers who challenged the reduced settlement rate for surplus electricity supplied to the grid. The Commission upheld the Average Pooled Cost of Power Purchase (APPC) rate of ₹3.26 per unit for the financial year 2023–24 and dismissed the demand to restore a higher rate of ₹4.34 per unit.

The order was issued by KSERC Chairman T.K. Jose and Member B. Pradeep. The dispute began after four rooftop solar consumers—Jameskutty Thomas, V. Sureshkumar, Advocate Mohan Varughese, and Sabu T.—approached the Commission against the truing-up order issued for Kerala State Electricity Board Ltd (KSEBL).

The petitioners argued that the Commission had wrongly reduced the APPC rate from the calculated ₹4.34 per unit to ₹3.26 per unit. They claimed that rooftop solar consumers contributed to the stability of the state electricity system by supplying excess renewable energy during daytime hours when solar generation was at its highest. They also objected to remarks in the earlier order that allowing adjustment of daytime solar generation against non-solar consumption provided “windfall benefits” to a small group of consumers.

KSEBL opposed the petition and said the lower settlement rate was justified due to unusual conditions faced during 2023–24. The utility highlighted a 34% shortage in the South-West monsoon, a sharp rise in electricity demand caused by heatwaves, and the cancellation of certain power purchase arrangements. These factors forced KSEBL to purchase electricity from power exchanges at very high prices.

According to KSEBL, rooftop solar consumers supplied surplus power mainly during daytime hours when market prices were comparatively low. However, these consumers depended on the grid during evening peak hours, when electricity purchase costs increased significantly and reached nearly ₹10 per unit. The utility argued that providing a higher APPC rate would place an unnecessary financial burden on more than 138 lakh regular consumers of the state.

KSERC also ruled that the petition was not legally maintainable. Referring to decisions of the Appellate Tribunal for Electricity (APTEL), the Commission observed that individual consumers cannot file tariff determination petitions. It also noted that the petitioners failed to present new evidence or identify any apparent mistake in the original truing-up order that would justify a review.

While examining the issue, KSERC observed that daytime solar generation does not directly help KSEBL meet evening peak demand. The Commission noted that the market value of daytime solar power was around ₹2.85 per unit on average. Therefore, the approved settlement rate of ₹3.26 per unit was considered reasonable and higher than rates available in many other states.

The Commission concluded that the petitioners had not provided sufficient grounds for reconsidering the earlier decision and dismissed the challenge, confirming the existing APPC rate for banked solar energy.