KERC proposes lower solar power tariffs for subsidy beneficiaries starting July 2026

The Karnataka Electricity Regulatory Commission (KERC) has issued a draft notification proposing revised solar power tariffs for the three-year period from July 1, 2026, to June 30, 2029. These tariffs will apply to various solar power projects, including the PM Surya Ghar Yojana and Distributed Solar Photovoltaic (DSPV) systems. The rates vary based on the amount of electricity generated and whether government subsidies are availed.

Consumers have until June 30, 2026, to submit objections to the proposed tariffs, after which a public hearing will be conducted to finalize the rates.

According to the draft, consumers generating solar power without government subsidies will receive higher rates for selling surplus electricity to the grid. For instance, those generating up to 10 kilowatts without subsidies will be paid ₹3.03 per unit.

However, for consumers who have benefited from government subsidies, the tariffs have been reduced. Under the PM Suryagarh scheme, rates will now depend on the volume of electricity generated. For one to two kilowatts, the rate is set at ₹1.87 per unit, for two to three kilowatts at ₹2.05 per unit, and for more than three kilowatts at ₹2.49 per unit. These rates represent a decrease from the previous tariffs of ₹2.30, ₹2.48, and ₹2.93 per unit, respectively.

The PM Suryagarh scheme aims to install rooftop solar panels on 1.02 lakh houses across Karnataka, with 80.96 MW of electricity already being generated from installations on 20,152 houses. Overall, the state currently generates 6,354.74 MW of solar power from various sources. In addition to rooftops, solar panels can now also be installed on courtyards, car parking spaces, and walls to generate electricity.

The Central government is providing subsidies ranging from ₹30,000 to ₹78,000 to encourage solar power generation. Many consumers are leveraging this support to install solar panels, using the electricity for their own needs and selling the surplus to power distribution companies.

The notification underscores the government’s efforts to promote renewable energy while ensuring a balance between incentivizing solar adoption and maintaining cost efficiency for power distribution. [S1-S6]