Kerala to Empanel Contractors for 150 MW of Residential Rooftop Solar Projects

The Kerala State Electricity Board (KSEB) has invited bids for empaneling contractors for 150 MW of grid-tied residential rooftop solar power projects in the state.

The scope of work includes the design, supply, installation, testing, and commissioning of the project along with 25 years of operation and maintenance services. The project has been categorized into four parts:

  • Part A: 2 to 3 kW
  • Part B: 4 to 10 kW
  • Part C: 11 to 100 kW
  • Part D: 101 to 500 kW

Interested bidders are expected to make an earnest money deposit (EMD) of ₹100 (~$1.34)/kW of the quoted capacity. The last date for the submission of bids is April 17, 2020.

The documents stated that beneficiaries under Part A would have two options to choose from – the regular EPC (engineering, procurement, and construction) model and the EPC RESCO Hybrid model, a unique business model developed by the state in line with the Ministry of New and Renewable Energy (MNRE) guidelines.


KSEB explained that consumers who opt for the EPC RESCO Hybrid model would have to pay 66.6% of the discovered EPC cost to the contractor by the state nodal officer (SNO) after the completion of the solar project and demonstration of performance ratio.

The remaining amount is to be paid after that on a monthly or bimonthly basis for the energy generated from the project at a pay-out rate, corresponding to the finalized EPC rate over 25 years.

Under the EPC model, which is applicable for all four parts, the EPC cost of the project discovered through bidding will be paid by the nodal officer to the contractor upon the completion of project installation and demonstration of performance ratio. The contractor is expected to provide operation and maintenance services for five years.

The upper ceiling rate as per the MNRE benchmark prices in e-reverse bidding inclusive of five years of operations and maintenance services, charges, statutory fees, cost of metering, and all taxes are:

Kerala - Upper Ceiling Rate for Empanelment of Contractors Under Soura Program

The minimum bid capacity is 1 MW under each part, and the maximum capacity is 150 MW, according to the tender. It added that allocation has been received for 50 MW for the year 2019-20 and that 100 MW more is expected for 2020-21.

Recently, Mercom reported that the Kerala State Electricity Regulatory Commission (KSERC) approved the proposal by KSEB for implementing 50 MW of grid-connected solar rooftop PV projects under Phase II of the MNRE’s RTS program. These projects came with central financial assistance (CFA).

Earlier, the Kerala State Electricity Board awarded 46.5 MW of rooftop solar capacity in a recently conducted auction to Tata Power, Waaree Group, and Inkel; a senior KSEBL official told Mercom.

Previously, the Kerala Government has launched a program called “Soura” to add 1,000 MW of solar projects to the existing capacity of Kerala State Electricity Board Limited by 2022. The projects will be implemented under the Urja State Kerala Mission and will be executed to fulfill the state’s renewable purchase obligation.