Empanelment Tender Issued for 3 MW of Residential Rooftop Solar Systems in Karnataka

Gulbarga Electricity Supply Company (GESCOM) has issued a notice inviting tender (NIT) to empanel vendors to install 3 MW of residential rooftop solar systems across seven districts in Karnataka.

The implementation is part of Phase II of the Ministry of New and Renewable Energy’s (MNRE) Grid-Connected Rooftop Solar Program. GESCOM is implementing the program in its jurisdiction under the Soura Gruha Yojane (Solar Homes Program).

The project must be commissioned within six months from the issuance of the allocation letter. Empanelled bidders must provide five years of operation and maintenance (O&M) services.

The last date to submit the bids is May 11, 2022. Bids will be opened on May 13.


Bidders must also furnish an earnest money deposit of ₹166,200 (~$2,166).

The empanelled bidders must also furnish a performance bank guarantee (PBG) calculated at 5% of the contract value per allocated capacity multiplied by the discovered cost within 15 days of the issue of the work order.

The empanelled bidders must also furnish an O&M PBG calculated at 5% of the contract value per allocated capacity multiplied by the discovered cost within 30 days from the empanelment period. If the empanelled vendor cannot submit the O&M PBG, the initial PBG for installation and commission will be encashed.

Bidders must have commissioned grid-connected rooftop solar systems with an aggregate capacity of not less than 240 kW during the last five financial years ending 2020-21. Local micro, small and medium enterprises (MSME) bidders must have commissioned grid-connected rooftop solar systems with an aggregate capacity not less than 120 kW during the last five financial years ending 2020-21.

Bidders must have an average annual turnover of ₹14 million (~$182,497) in the last three financial years ending 2020-21. MSME bidders registered in Karnataka are exempted from the financial eligibility requirements. They must have an average annual turnover of ₹7.5 million (~$97,766).

Bidders must have liquid assets consisting of cash at the bank, term deposits, and availability of credit facility, which must not be less than 25% of the amount put to the tender, i.e., ₹3.5 million (~$45,624). For MSME bidders, the liquid assets must not be less than ₹1.74 million (~$22,672). MSME bidders registered in Karnataka are exempt from presenting the liquid asset portfolio.

The project is divided into Parts A, B, C, and D. Under Part A, systems of 1 kW up to 3 kW each must be installed. Bidders can apply for a minimum aggregate capacity of 300 kW and a maximum of 1 MW. The total capacity to be installed under part A is 1 MW. Under Part B, systems above 3 kW up to 10 kW each need to be installed. Bidders can apply for a minimum aggregate capacity of 300 kW and a maximum of 1 MW. The total capacity to be installed under Part B is 1 MW.

Under Part C, systems of above 10 kW up to 100 kW each have to be installed. Bidders can apply for a minimum aggregate capacity of 300 kW and a maximum of 500 kW. The total capacity to be installed under Part C is 500 kW. Under Part D, systems of above 100 kW up to 500 kW capacity are to be installed. Bidders can apply for a minimum aggregate capacity of 300 kW and a maximum of 500 kW. The total aggregate capacity for Part D is 500 kW.

Karnataka GESCOM 3 MW rooftop solar

The MNRE will provide central financial assistance (CFA) up to 40 % for rooftop solar systems up to 3 kW capacity. For rooftop systems of capacity above 3 kW and up to 10 kW, the CFA of 40% would be applicable only for the first 3 kW capacity, and for capacity above 3 kW, the CFA would be limited to 20%.

For group housing societies or residential welfare associations, CFA will be limited to 20% for installing the rooftop system to supply power to common facilities. The capacity eligible for CFA will be limited to 10 kW per house.

The Karnataka Electricity Regulatory Commission had issued an order setting the generic tariff for solar power projects, including rooftop solar projects, for FY 2022 and FY 2023. The new tariffs will be applicable for new solar projects for which the power purchase agreements have been entered into on or after April 1, 2021. The order will be in force from April 1, 2021, and applicable for the control period of FY 2022 and FY 2023.

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