Karnataka’s New Utility-Scale Solar Benchmark Tariff is 30% Less at ₹3.05/kWh

The Karnataka Electricity Regulatory Commission (KERC) has fixed generic tariffs for renewable energy projects developed across the state.

Generic Tariff for Solar Projects:

For grid connected MW-scale solar projects of capacity less than 5 MW, KERC has fixed a generic tariff of ₹3.05 (~$0.0447)/kWh.

The new utility-scale solar benchmark tariff is ₹1.31 (~$0.0192)/kWh or 30 percent less than KERC’s previous benchmark tariff of ₹4.36 ($0.07)/kWh. The reduction comes amid a trend of declining tariffs in state tenders.



KERC has fixed the generic tariff at ₹2.67 (~$0.0391)/kWh (without capital subsidy) for rooftop solar projects of 1 MW or less. The generic tariff for rooftop solar projects with a  capital subsidy is ₹3.56 (~$0.052)/kWh. These tariffs will be applicable for the control period April 1, 2018 to March 31, 2019.

Karnataka’s New Utility-Scale Solar Benchmark Tariff is 30% Less at ₹3.05/kWh The new generic tariff rate for rooftop solar without subsidy is ₹2.53 (~$0.037)/kWh or 49 percent less than the previous benchmark tariff of ₹5.20 (~$0.08)/kWh without subsidy.

Mercom previously reported that KERC proposed a tariff of ₹2.79 (~$0.043)/kWh for new, MW-scale, grid-connected solar photovoltaic projects developed in Karnataka.

Generic Tariff for Wind Projects:

KERC has also fixed a generic tariff of ₹3.45 (~$0.0505)/kWh for wind projects of less than 25 MW capacity. The tariff is applicable from April 1, 2018 and will apply up to March 31, 2019. The new tariff is ₹0.29 (~$0.0042)/kWh less than the previous generic wind tariff of ₹3.74 (~$0.0548)/kWh.

Others:

For new mini-hydel, bagasse based co-generation and rankine cycle-based biomass power projects, KERC has set generic tariffs which will be applicable from April 1, 2018, to March 31, 2021. The levelized tariff for new mini-hydel projects and the fixed tariff for new bagasse based co-generation and rankine cycle-based biomass power projects determined in this order will be applicable for the term of the power purchase agreement (PPA).

Karnataka tops the list of solar states in India, exceeding 5 GW of cumulative solar installations in Q1 2018, and represents a 24 percent market share of the total installed capacity in India during that same quarter, according to Mercom’s India Solar Project Tracker.