The Karnataka Electricity Regulatory Commission (KERC) has fixed a promotional tariff of Rs 14.5 per KWh of solar photo voltaic (PV) and Rs 11.35 for solar thermal-based generating units in the state. This tariff will be effective for units to be established before 31 March 2013.

For rooftop solar PV and small solar power plants connected to distribution networks at below 33 kV, the tariff will be the same at Rs 14.5 per KWh.  Towards this, a generation based incentive (subsidy) equal to the difference between the tariff determined by CERC and the base rate of Rs 5.5 per KWh with an annual escalation of three per cent will be payable by the ministry of new and renewable energy to the power purchasing distribution utility. KERC had circulated a discussion paper in the last week of May in this regard. In response, various stakeholders including consumer representatives had made written and oral submissions to the Commission in the public hearing on 12 July.

The Commission had considered it necessary to fix a promotional tariff for solar power in view of the higher levels of initial investment required and its associated renewable energy benefits.

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