India’s Karnataka reduces benchmark solar tariff after record lows in other states

KERC made the changes after seeing bids below four rupees in other states. Credit: Tata

The Karnataka Electricity Regulatory Commission (KERC) has reduced the benchmark tariff for grid-connected utility-scale solar in the Indian state from INR6.51/kWh (US$0.101) to INR4.36/kWh (US$0.068).

This is lower than the INR4.50/kWh selling price of Solar Energy Corporation of India (SECI), which has been responsible for a significant proportion of India’s multi-gigawatt solar tenders over the last 18 months.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The KERC Order said: “Media reports show that some states have received bids from developers to supply solar power around INR4 per unit. The Commission therefore considered that the tariff and control period set in its Order dated 30 July 2015 is to be revised.”

The new policy therefore substantiates recent analyst reports that states have been revising their tender parameters in the wake of the record low tariffs at Rewa in February. Indeed prices again fell to a new low of INR3.15/kWh in Andhra Pradesh only this week. Analysts have said that tender reworking had caused the recent slump in tender allocations.

KERC’s ruling is effective for all plants signing power purchase agreements (PPAs) from 1 April up until 1 April 2018.

This new tariff will also apply to projects for which PPAs were signed prior to 1 April this year, but which are commissioned within FY2017/18.

This article has been revised to say that the tariff revision happened in Karnataka.

Read Next

June 14, 2024
Spanish PV developer Solarpack has signed a power purchase agreement (PPA) with Indian state-owned utility SJVN for a 482MW hybrid solar-wind park.
June 4, 2024
The Solar Energy Corporation of India (SECI) has launched a request for proposals for 1.2GW of new solar PV capacity in the country.
May 31, 2024
Mercom India has published its latest research into Indian rooftop solar, finding that India installed 367MW of new capacity in Q1 2024.
May 31, 2024
Indian renewables developer Avaada Energy has secured a 1050MW contract in a tender issued by the government’s Renewable Energy Implementing Agency (REIA) and National Thermal Power Corporation (NTPC).
May 29, 2024
The challenges facing Europe's solar sector are explored in depth in the latest edition of our quarterly journal, PV Tech Power.
May 24, 2024
Waaree Energies has signed an agreement to supply 445MW of modules to Statkraft India for a project in Bikaner, Rajasthan.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia