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KERC Proposes Revised Rooftop Solar Tariffs and Net Metering Guidelines

The Karnataka Electricity Regulatory Commission (KERC) has proposed revised tariffs for rooftop solar projects under the PM Surya Ghar: Muft Bijli Yojana. The new rates are Rs2.3/kWh for 2-3 kW, Rs2.93/kWh for unsubsidized rooftop solar projects up to 10 kW, and Rs3.08/kWh for those above 10 kW. The Commission is accepting stakeholder comments until April 15, 2025.

The proposed tariff for ground-mounted solar projects is Rs2.92/kWh. Key financial assumptions include a 25-year project life, a 19?pacity utilization factor, and a 70:30 debt-equity ratio. Capital costs are set at Rs35,000/kW for larger rooftop systems, and Rs3.005 crore/MW for ground-mounted projects. The return on equity is proposed at 14% per annum, with a discount rate of 11.97%.

Net Metering Guidelines

KERC has introduced guidelines for virtual and group net metering, allowing consumers to install solar projects under a capex or third-party investment model. Key provisions include:

• Virtual net metering allows multiple consumers of the same category to share a solar project, with a minimum capacity of 5 kW.
• Group net metering enables prosumers to offset electricity consumption across multiple service connections under the same name.
• DISCOMs will purchase surplus energy at 75% of the generic tariff at the end of the financial year.
• Consumers must have smart meters, and surplus energy credits will reset annually.

These proposals aim to streamline solar adoption, enhance distributed generation, and facilitate flexible energy sharing mechanisms.