Karnataka decreases small-scale solar tariffs after PV cost reductions

Facebook
Twitter
LinkedIn
Reddit
Email
Credit: Conergy

The Indian state of Karnataka has revised its tariff for small-scale and rooftop solar systems downwards in the range of 25-45% in response to a reduction in the capital costs of solar.

The Karnataka Electricity Regulatory Commission (KERC) issued an order revising the tariffs for the various capacity segments of solar systems with the highest rates now standing at INR 7.08kWh without capital subsidy for 1-10kW systems. The original tariff for all systems was INR 9.56/kWh without subsidy.

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 revised tariff applies to power purchase agreements (PPAs) be signed on or after 2 May 2016 and up to 31 March 2018 with plants being commissioned during this period. The new tariffs are:

The original tariff applicable to solar generators entering into PPAs from 1 April 2013 running up to the end of March 2018 was INR 9.56/kWh without subsidy, and INR 7.20/kWh with 30% capital subsidy.

A Mercom Capital Group spokesperson told PV Tech that in KERC’s previous order from 30 July 2015, the tariffs “were left undisturbed as no significant reduction in their capital cost was observed”.

The targeted capacity of rooftop solar power plants to be achieved by Karnataka under India's overall National Solar Mission is as follows:

Karnataka is increasing the benefits of its net metering scheme, where consumers receive credits for pumping energy back into the grid, as discussed by Anand Nagarajan, founder of Dexler Energy, in interview with PV Tech.

If you are looking to invest in or develop solar projects in India, join us on the 7th of June in London at Solar Finance & Investment: India, a conference designed to bring together European and North American investors and developers looking into the Indian market, as well companies with consolidated presence that are exploring new partnerships.

Read Next

June 26, 2025
ACEN has partnered with UPC Renewables to build two renewable projects in Rajasthan and Karnataka, India. 
June 25, 2025
Emmvee has secured INR15 billion (US$174 million) order for TOPCon bifacial solar modules from KPI Green Energy. 
June 24, 2025
BluPine Energy has raised INR2,416 million (US$290 million) debt sanctions for its 150MW power project in Aland, Karnataka.
June 19, 2025
Norwegian energy company Statkraft has narrowed down its focus on fewer markets and technologies as it targets to reduce its expenses by NOK2.9 billion (US$290 million) annually by 2027.
Premium
June 18, 2025
Aesolar and Fraunhofer CSP are developing segmented solar modules optimised for rooftops with partial shading.
June 9, 2025
Growing political headwinds threaten to dent US solar manufacturing and project deployment, despite a strong start to 2025.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico