PM-KUSUM: Gujarat Farmers to Earn Rs 2.83/Unit for Surplus Solar

The Gujarat Electricity Regulatory Commission (GERC) has approved the implementation of Component C of the PM-KUSUM scheme, setting the stage for large-scale solarization of grid-connected agricultural pumps across the state.

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In an order issued in response to a petition filed by the state’s four distribution companies (DGVCL, MGVCL, PGVCL, and UGVCL) along with Gujarat Urja Vikas Nigam Limited (GUVNL), the regulator cleared a tariff of Rs 2.83 per unit for surplus solar power injected into the grid by participating farmers. It also authorized the regular agricultural tariff for energy drawn from the grid during billing cycles.

Move Aligned With State Vision 

The move aligns with a Gujarat government resolution dated November 6, 2020, and aims to incentivize farmers to adopt individual-level solar installations.

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The Commission stated the approved rate was in line with previous GERC decisions and remained competitive when compared to tariffs paid to other consumer categories. It cited broader benefits, including reduced system losses, support toward meeting Renewable Purchase Obligations (RPOs), and lower cross-subsidization in the agricultural power segment.

Under the scheme, 60% of the project cost is covered through central and state subsidies, with the remaining 40% to be borne by farmers. The scheme promises not only savings on energy bills but also additional income from surplus energy sales over a 25-year period.

Demand For Higher Tariff 

Objections had been raised by the Gujarat Krushi Vij Grahak Suraksha Sangh (GKVGS), which called for a higher tariff of Rs 5 per unit, shorter contract terms, and immediate system ownership for farmers. The GERC, however, rejected these changes, citing policy and financial sustainability concerns. It upheld the 25-year agreement term and five-year initial ownership by the government, calling them essential for project stability.

The Commission did take note of select suggestions. It directed the petitioners to develop a formal grievance redressal process within two months, and urged them to provide contract documents in Gujarati to aid comprehension among farmers.

The GERC’s approval is seen as a significant step toward decentralised renewable energy generation and rural empowerment, as Gujarat continues to scale up solar initiatives under the national PM-KUSUM programme.