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HPERC Sets Levelized Tariffs for Solar Projects in FY 2025-26

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has approved levelized tariffs for solar projects up to 5 MW for the financial year 2025-26.

Approved Tariffs:

• Up to 1 MW: Rs3.45/kWh
• 1 MW - 3 MW: Rs3.38/kWh
• 3 MW - 5 MW: Rs3.32/kWh (for areas outside urban & industrial zones)
• Urban & industrial zones: Rs3.50/kWh, Rs3.40/kWh, and Rs3.38/kWh for different categories.

Key Determinations by HPERC:

• Tariffs for projects above 5 MW will be determined through competitive bidding or via procurement by the Solar Energy Corporation of India (SECI).
• Capacity Utilization Factor (CUF) remains at 21%, with expectations of improvement through technological advancements.
• Normative capital costs range from Rs3.341 crore/MW to Rs3.416 crore/MW based on location.
• Debt-equity ratio: 70:30
• Return on Equity:
  • First 20 years: 16.81%
  • Next 5 years: 19.40%
• Interest rate on loans: 10.98% per annum.
• Depreciation Rate:
  • First 15 years: 4.67%
  • From the 16th year: 1.99%
• Working capital interest rate: 12.48% per annum.
• O&M expenses: Set at Rs0.105 crore/MW, with an annual escalation of 3.84%.

The Commission engaged various stakeholders such as HIMURJA, HPSEBL, HPPCL, HPPTCL, SJVN, and consumer representatives before finalizing these tariffs.

Recently, HPERC also released a draft framework for resource adequacy, ensuring cost-effective electricity procurement to meet future demand efficiently.