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Gujarat Electricity Regulatory Commission (GERC) Approves Rs2.95/kWh Tariff for Decentralized Solar Projects Under PM-KUSUM

The Gujarat Electricity Regulatory Commission (GERC) has approved a levelized tariff of Rs2.95 /kWh for power procurement from decentralized solar and renewable energy projects under Component-A of the PM-KUSUM scheme. This follows a joint petition by the state’s four DISCOMs—Paschim, Madhya, Uttar, and Dakshin Gujarat Vij Companies—who argued that the tariff was economically viable and lower than their average power purchase cost (APPC).

GERC acknowledged that although the tariff is slightly above the lowest recent competitive bids, it is justified due to the small scale (up to 2 MW) and decentralized nature of the projects, which lead to higher per-unit costs and complex grid integration. The Commission emphasized the role of such projects in supporting public policy objectives, including renewable energy adoption, farmer empowerment, and rural energy security.

The approved tariff will apply for a limited period to enable swift implementation of the scheme in Gujarat. The Commission has directed DISCOMs to proceed accordingly, supporting the broader goals of the PM-KUSUM initiative.