In order to encourage the development of the solar power industry in the state, the Karnataka Electricity Regulatory Commission (KERC) on Friday announced new tariffs for grid-connected solar power plants and rooftop solar plants.
According to the new order, the approved tariffs are Rs 8.40/unit for solar photovoltaic (PV), Rs 10.92/unit for solar thermal, Rs 9.56/unit for rooftop and small solar PV plants and Rs 7.20/unit for rooftop and small solar PV plants with 30 per cent government subsidy on capital costs. The tariff will be applicable for solar power generators entering into power purchase agreements with ESCOMS on or after April 1 of this year and will be valid for five years.
“The decline in tariff is keeping in mind the lower costs of solar modules today. We have estimated the capital cost of setting up 1 MW of solar PV at Rs 8.30 crore. However, the cost of solar thermal has not reduced much and it still costs Rs 12 crore to set up production of 1 MW,” said M R Sreenivasa Murthy, Chairman, KERC.