Daily News Wrap-Up: Free Electricity Slows Rooftop Solar Rollout in Karnataka

Gujarat retains last year’s electricity tariffs for FY 2026

April 11, 2025

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The implementation of the PM Surya Ghar: Muft Bijli Yojana in Karnataka has been slow to take off. Despite a sharp rise in registrations, only 6,519 rooftop solar systems with a total capacity of 24.95 MW have been installed so far. The conversion rate from registrations to installations has been extremely poor. Across five distribution companies, the total number of registrations is 615,386, while the number of installations is a mere 6,519, corresponding to 1.1%.

The Gujarat Electricity Regulatory Commission announced tariffs for the retail sale of electricity for the financial year 2026. According to the new order, the tariffs for low tension, high tension, and extra-high tension consumers in Gujarat remained unchanged from the previous year, barring a few new provisions.

Government agencies are exploring the possibility of increasing the frequency of Renewable Energy Certificate (REC) trading sessions on power exchanges. Following an order of the Central Electricity Regulatory Commission, the Grid Controller of India has sought suggestions from stakeholders by April 25, 2025, on increasing REC trading sessions from two a month.

Kerala announced plans to add 1 GW of utility-scale solar projects and solar parks across the state by 2030 as part of its Draft Power Policy 2025. It also aims to install a capacity of 2.5 GW through decentralized solar initiatives and develop 1.5 GW from non-solar renewable sources. Kerala’s transmission infrastructure will be significantly upgraded to accommodate the expected surge in renewable energy generation and handle a peak load of up to 10 GW by the decade’s end.

The Gujarat Electricity Regulatory Commission approved Dakshin Gujarat Vij Company’s petition to adopt tariffs ranging from ₹2.28 (~0.026)/kWh to ₹3 (~$0.35)/kWh for 160 MW solar projects under Component C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan program.

NTPC Renewable Energy invited bids for a balance of system package to develop 1,000 MW (2×300 MW+2×200 MW) solar projects in Bikaner, Rajasthan. The scope of work entails the designing, engineering, manufacturing, packing and forwarding, transportation, installing, testing, and commissioning of the solar projects. Selected bidders must arrange power and water supply for construction purposes and construct a pre-engineered inverter room with power conditioning unit associated low-tension and high-tension switchgears.

India’s first commercial standalone battery energy storage system (BESS) project with a 20MW/40MWh capacity at the distribution company level and a tariff approved by the electricity regulatory authority has been commissioned by power sector infrastructure investment trust IndiGrid in Delhi. The Kilokari BESS project was awarded to IndiGrid in October 2023 by BSES Rajdhani Power.

The Middle East has long struggled to establish a competitive solar manufacturing sector despite receiving abundant sunshine and increasing commitments to clean energy. However, recent developments suggest a rapid shift is underway. Governments are ramping up local content requirements, new factories are breaking ground, and regional players are positioning themselves as serious global solar supply chain contenders.

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