Latest news with #KERC
Time of India
10 hours ago
- Business
- Time of India
Now, Karnataka Electricity Regulatory Commission permits citizens to install solar panels on walls of apartment buildings
Bengaluru: Breathing a fresh lease of life into the Solar Rooftop PV (SRTPV) project, which met with a poor response from public in the wake of the state govt's Gruha Jyothi scheme, Karnataka Electricity Regulatory Commission (KERC) not only revived the entire project but also rechristened it as 'Distributed Solar PV (DSPV) Plants'. Under the new DSPV system, citizens can install solar panels not just on the rooftop but also on the walls of buildings and any elevated structures on the ground, including carports and other structures in apartment communities and govt buildings. The KERC's latest order is viewed as a game changer for apartment communities, domestic consumers, govt buildings, and charitable institutions. The new DSPV method not only provides them with better revenue options for harnessing solar energy but also offers a lucrative tariff permitted through Virtual Net Metering (VNM) and Group Net Metering (GNM) models. The new methods and tariff will be applicable to all solar projects commissioned after July 1, 2025, and will be valid for the next 25 years, according to the order. The Karnataka Renewable Energy Association and Solar Manufacturers had requested KERC to allow setting up of solar panels on all elevated structures on the ground with a net-metering facility, besides permitting facade-integrated solar panels on the walls of buildings. The KERC, considering the latest developments in solar technology, permitted it along with VNM and GNM. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru Raghunandan A, president of Karnataka Renewable Energy Association, revealed VNM benefits multiple consumers within the same utility service area to share the benefits of a single solar power system, even if they do not have solar panels on their property. "VNM is best suited for those who do not wish or cannot install solar on their own rooftops. But if they have invested in rooftop projects elsewhere in the same premises, they will receive credits on their electricity bills based on their share of the generated power," he said. Similarly, GNM is a method where a single consumer with multiple accounts can pool the solar energy generated from a single or multiple solar power plants and offset their electricity bills across all those accounts linked to the entity. The VNM is seen as a shot in the arm for domestic consumers, group housing societies (apartments), institutions managed by charitable organisations, and govt buildings, including schools or those belonging to local bodies. "The minimum capacity of the solar plant under VNM would be 5kW, and the maximum size shall not exceed the combined sanctioned load of all participating consumers," the KERC order said. Under VNM, consumers can sell their entire solar energy to the grid, but under GNM, the consumers must consume at least 20 per cent of the total energy generated by the solar plant in a month. Better Tariff To promote solar energy, KERC has offered the best tariff, according to stakeholders. "Consumers can avail Rs 3.86 per unit for up to 10kW, and Rs 3.8 per unit for power generated above 10 kW. Given the existing tariff structure for solar projects, this is a very decent tariff and will be a good revenue model for apartment communities as these earnings would balance their monthly maintenance expenditure," explained a member of Karnataka Renewable Energy Association. Cost per kW 1kW – 10 kW (Rs 40k/kW) 1 kW up to sanctioned load kW (Rs 30k/kW) Life of the Solar Plant 25 yrs 25 yrs Debt equity Ratio & Debt 70:30 (Rs 28,000) 70:30 (Rs 21,000) Debt repayment in years 13 13 Equity in rupees Rs 12,000 Rs 9,000 O&M expenses (per kW) Rs 791.31 Rs 791.31 Tariff per unit (without subsidy) Rs 3.86 Rs 3.08 Tariff per unit (with subsidy) Rs 2.30 (1 kW-2kW) Rs 2.48 (2kW – 3 kW) Rs 2.93 (3 kW & above) ------ Source: KERC
The Hindu
17-07-2025
- Business
- The Hindu
Govt wants to increase industrial and commercial electricity tariff in Karnataka
The government has filed a petition before the Karnataka Electricity Regulatory Commission (KERC) to reduce the tariff on LT 4(a) — the irrigation pump set category — and increase the tariff for industrial and commercial consumers to fill the revenue gap of ₹4,620 crore. The revenue gap occurs at the electricity supply company (escom) level when there is a deficit between the tariff collected and the expenditure, including power purchase cost, that is incurred. The commission has admitted the review petition. In this year's (FY 2025 – 26) budget, the government of Karnataka had announced a subsidy of ₹16,021 crore for IP sets, and ₹10,101 crore for Gruha Jyothi scheme. However, in the tariff order passed for this year, KERC stated that the subsidy required to provide free power for IP sets is ₹20,095.44 crore. In the petition, the government has also stated that in addition to the subsidy amount of ₹16,021 crore announced in the budget, the government will release an additional subsidy of ₹2,362.47 crore to mitigate the overall shortfall in revenue. Industrialists and experts from the power sector argued that KERC should not have admitted the review petition, as it did not have the necessary criteria. 'A review petition under the Code of Civil Procedure (CPC) is a mechanism for a court to reconsider its own judgement or order. This is typically done when there is a mistake or error apparent on the face of the record, new and important evidence is discovered, or another sufficient reason exists. It is a way to correct errors, and not meant to be a second chance to argue the case on merits,' said M. G. Prabhakar, former advisory member, KERC. However, KERC officials said that there are grounds to admit the petition and seek public opinion. 'When the government itself is appealing, we can admit the petition. We have now directed escoms to publish newspaper advertisements and hold public hearings on the matter. We will take a decision based on the recommendations of all stakeholders,' P. Ravikumar, Chairman, KERC told The Hindu. Industrialists, who have already been burdened by a plethora of cess, are dreading an increase in tariff, especially since the recent tariff petition is a multi-year tariff petition. Shiva Kumar R., former president of Peenya Industries Association (PIA), said, 'Industries are already in dire straits. Especially in Bengaluru, the infrastructure is still new, and we face a lot of hardship. The government wants us to increase minimum wage. They have already imposed a tariff of 36 paise per unit for this year to cover the pension and gratuity of escom employees. We are also paying solid waste management (SWM) cess. Instead of burdening us so much, if industries are encouraged, then economic activity and employment generation will increase. Otherwise, how are micro and small-scale industries supposed to operate?' He added, 'We strongly oppose this petition. We will definitely file our objections when a public hearing is called.' For FY 2025 – 26, the energy charges for industrial consumers are ₹6.60 per unit, and for commercial consumers, it is ₹5.95 per unit. The energy charges for both these categories were reduced in the tariff order while the charges for the LT 4(a) category went up from ₹5.65 per unit to ₹8.30 per unit.
Deccan Herald
16-07-2025
- Business
- Deccan Herald
Escoms want tariff order review; seek hike for industries, business
In their review petition admitted by KERC on July 8, Escoms have sought increasing the tariff for industrial and commercial establishments and reducing it for agricultural pumpsets, saying this is required to fill the revenue gap of Rs 4,620 crore.
New Indian Express
13-07-2025
- Business
- New Indian Express
ESCOMS want power tariff hiked again
BENGALURU: The Electricity Supply Corporations Limited (ESCOMs) have sought an amendment from Karnataka Electricity Regulatory Commission (KERC) to fill their revenue gap of Rs 4,620 crore by increasing power tariff for commercial and industrial consumers. This pending amount is pertaining to the subsidy given to LT-4(A) consumers, the irrigation pump sets (IP sets) consumers. To hike the tariff mid-fiscal, the ESCOMs filed an appeal before the KERC for the first time on March 23, 2025, and the last hearing was held on July 8. The KERC has permitted the ESCOMs to seek public opinion from all stake holders within 30 days and submit the details to the Commission through an affidavit. Experts and officials in the energy department said that usually tariff revisions are done during different financial quarters to accommodate the fuel adjustment charges. But a revision of this sort, has been sought for the first time, as it is becoming difficult for the government to clear dues, an official seeking anonymity said. Noted energy expert, MG Prabhakar said, the law does not permit ESCOMs to make such amendments mid-fiscal. He said the subsidy that the government has given to the IP sets is more, which the ESCOMs are finding difficult to manage. So now to match the revenue, the ESCOMs want to pass on higher tariff to the consumers. The same will be done gradually for the Guha Jyothi scheme. He said that for the year 2025-26 the approved sale of IP sets is 24868.10 million units and the government has a liability of supplying power to them at Rs 8.30 per unit. This tariff was fixed by KERC. But as per the Karnataka Electricity Act 2003, section 63, sub-section-4, no tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified. Otherwise any review is not permitted, he said, quoting the orders. Members of various industrial bodies said they will file their objections before the KERC and the ESCOMs.
The Hindu
09-07-2025
- Business
- The Hindu
KERC allows installation of solar power projects in spaces other than rooftops
Do you want to install a solar power generation project in your building, but do not have space on your rooftop? You can now install solar power projects wherever there is space on your property as long as it can be done at a height of 8 feet (ground clearance). In a big push to decentralised solar projects, the Karnataka Electricity Regulatory Commission (KERC), in an order issued on Wednesday, extended the net metering/gross metering arrangements provided to Solar Rooftop Photovoltaic (SRTPV) systems to ground mounted solar projects with elevated structures, facade-integrated solar panels on the walls within the premises. The commission has also renamed SRTPV plants as Distributed Solar PV (DSPV) plants, which can be installed in places like car ports and cycle parking spaces on the premises. The solar panels themselves can also be used as roof/top of a structure without any base below it. 'Not every consumer will have space on the rooftop to set up solar panels. Now we have given them a provision to set it up anywhere according to the building bylaws. It will be treated the same way as rooftop solar projects, and what (power) they generate will be set off against what they are consuming,' P. Ravikumar, chairman, KERC, told The Hindu. Considering the growing demand for sustainable and clean energy, which has led to a significant focus on solar projects, the commission issued a discussion paper in March 2025 to seek the stakeholders' insights and recommendations for enhancing solar energy adoption. A public hearing on the matter was held on June 6. Taking into account the suggestions and recommendations, along with the fact that the State has an installed capacity of just 754.89 megawatts (MW) under SRTPV and 5666.22 MW under ground-mounted plants, the commission has brought in some changes to the existing regulations. Virtual and Group Net Metering The commission has also allowed Virtual Net Metering (VNM) and Group Net Metering (GNM) for the DSPV projects heeding to the demand of the stakeholders. 'Under VNM, a group of two or more consumers from the same consumer category can set up solar plants to offset the electricity consumption of more than one electricity service connection(s) of participating consumers located within the area of supply of an electricity supply company (escom). Domestic consumers, group housing societies, institutions run or managed by charitable Institutions/organisations, government buildings including schools, buildings belonging to local authorities shall only be eligible to install Solar plants under virtual net metering arrangements,' Mr. Ravikumar explained. He further explained that under GNM, a consumer can set up a DSPV project in any one of their installations, and the energy that is exported to the grid can be used to set off the electricity consumption of more than one connection under the same name. This is open to all categories of consumers. The minimum size of the plant under both VNM and GNM should be 5 kilowatts (KW). KERC has also eliminated the execution of the Power Purchase Agreement (PPA) for Domestic (LT) consumers up to 150 kW. 'In cases of shifting solar panels due to a change in the location of the consumer within the jurisdiction of the escom, the consumer is allowed to continue the same PPA for its remaining term.
