Karnataka decreases small-scale solar tariffs after PV cost reductions

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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.

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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.

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