KarnatakaElectricity Regulatory Committee (KERC) has slashed the tariffs on solar photovoltaic plants from D6.51 per unit to D4.36 per unit on Wednesday. The decrease was along expected lines since tariffs have seen a drastic decrease across India as capital cost per MW has come down due to cheaper solar modules being available.
The tariffs are the price the government pays to buy solar power from producers who are connected to the grid and these rates are not applicable to producers of power from solar rooftop panels or solar thermal plants. KERC said the rates would be applicable to solar PV plants entering into purchase agreements on or after April 1 2017 and before April 1, 2018. KERC Chairman Shankarlinge Gowda stated that the changes had been made based on the market developments and changes in capital costs.