KERC Sets New Generic Tariff for Solar Rooftop Projects

The generic tariff without capital subsidy is set at Rs 4.15 and Rs 3.08 with capital subsidy and will be applicable on PPAs signed after December 19, 2018.

The Karnataka Electricity Regulatory Commission in its latest order has set the generic tariff for grid connected solar rooftop units which are installed by domestic users in the state. The tariff price is for solar units between 1 and 10 KW.

The generic tariff without capital subsidy is set at Rs 4.15 and Rs 3.08 with capital subsidy. This tariff will be applicable to all rooftop solar installations where PPAs are signed after December 19, 2018.

Prior to this, an order dated May 5, 2018 had set a levelised tariff of Rs 3.56 for all rooftop units.

The order mentioned that, “there is reduction in the module prices in the market after the issue of the tariff Order dated 18.05.2018. The Commission also notes that the capital cost of smaller capacity SRTPV plants installed by domestic consumers would be higher than that adopted in the said Order.

It further said, “Thus while the cost to be incurred on solar panels/modules could be lower because of lower capacity, the cost of other equipment and infrastructure would not be proportionally lower.”

The commission maintained that it was considered that one of the reasons for the poor response for installation of rooftop solar photovoltaic plants by the domestic consumers may be the low Feed in Tariff fixed by the Commission as compared to the relatively higher capital cost of smaller capacity SRTPV units.