Tariff for a Delayed, Partially Synchronized Rooftop Solar System Slashed by 46%

The Karnataka Electricity Regulatory Commission (KERC) has issued directions for a new power purchase agreement (PPA) to be signed for a 1 MW rooftop solar power system at a revised tariff of ₹5.2 (~$0.071)/kWh in the case of an incomplete and delayed project by a rooftop solar developer.

Background 

Srishyla Educational Trust had filed a petition with the Commission asking to direct the Bangalore Electricity Supply Company (BESCOM) to pay a tariff of ₹9.56 (~$0.131)/kWh for the power generated from the 1 MW rooftop solar system at its premises with net metering.

BESCOM had rejected this tariff citing multiple violations to the terms of the PPA in the petitioner’s execution of the project. The petitioner had not commissioned the project within the specified six-month timeline, nor had it commissioned the entire 1 MW capacity as per the PPA.


It said that Srishyla had injected more than 100% of the energy that the project could generate without authorization and had installed four solar meters instead of one as per the terms and conditions of the PPA.

BESCOM argued that the petitioner was only eligible for a tariff of ₹3.57 (~$0.049)/kWh given these violations. It would have to execute a fresh PPA for the installed capacity of 486 kW. However, following a joint inspection by both parties on the Commission’s direction, it was discovered that the petitioner had only installed a 418 kW system instead of its claimed capacity of 487 kW.

BESCOM added that Srishyla had installed and commissioned additional capacity without authorization and had supplied extra power to the grid. It noted that Srishyla was not entitled to any payment for this.

Commission’s Stance 

The Commission ruled that the petitioner had violated the terms and conditions of the PPA and the rooftop solar guidelines. Also, the partial implementation of the rooftop solar system was a violation of the PPA terms and the guidelines issued.

It also held that the petitioner had fraudulently installed and commissioned additional modules in addition to the capacity already synchronized by BESCOM.

However, the Commission ruled that the petitioner had commissioned the synchronized capacity within the allotted time. It allowed the petitioner to synchronize the remaining 566 kW of capacity at a reduced tariff and specified certain conditions.

It directed that solar generation must be installed alongside the existing bi-directional meter and that the gross energy generation must be recorded. It also directed the petitioner to correct the wiring system, remove the extra meters, and then, within two months from the date of the order, sign a fresh PPA for 985 kW of power at a tariff of ₹5.2 (~$0.071) for a reduced duration of 20 years. It rejected all other reliefs claimed by Srishyla.

Earlier in a similar case, KERC ruled in favor of the BESCOM and revised the tariff of a 1 MW rooftop solar project. The tariff was reduced from ₹9.56 (~$0.13)/kWh to ₹5.20 (~$0.07)/kWh due to a delay in commissioning.

In another case, KERC reduced the tariff of a 1 MW rooftop solar system to ₹3.57 (~$0.048)/kWh from the ₹9.56 (~$0.13)/kWh that was agreed at the time of signing the PPA.