Here is some good news for residential consumers in Karnataka who want to install rooftop solar power plants on their premise. The state has revised the tariffs for project size of 1 KW to 10 KW upwards. The tariffs for these small units will be INR 4.15 per unit. Should a consumer opt to avail subsidy the tariff will be INR 3.08.
Reason for revision of rooftop solar tariffs
In May Karnataka Electricity Regulatory Commission had revised the tariffs for rooftop solar plants. The tariff then discovered was INR 3.56 per unit. Strangely it was uniform for the project size between 1 KW to 1000 KW.
KERC had used the following technical and financial parameters to discover the feed-in tariff at INR 3.56. In doing so it had assigned the benchmark capital cost to INR 40,000 per kW for all project sizes.
This was a matter of concern for stakeholders. As small solar capacities do not achieve the economy of scale their cost and hence the tariff tends to remain on the higher side. As such a feed-in tariff of INR 3.56 was too less for small units.
Since residential consumers are already paying high tariffs to their DISCOMS it doesn’t make any sense for them to make further investment in installing rooftop solar. Here are the effective tariff rates for residential consumers consuming units between 100 to 500 units.
And, therefore, KERC decided to increase the rooftop solar tariff for these consumers. In September SolarDae had reported about the impending tariff revision. In the latest order, KERC has increased the capital cost of rooftop solar of sizes from 1 to 10 KW from INR 40,000 to INR 48,000 per KW. Other parameters remain the same.
SolarDae had also reported earlier that many businesses would be focussing on residential rooftop solar market in 2019. The regulatory decision thus favours their aspirations in the new year.
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