KERC Extends Solar Tariff Order Till June 30, 2025 Amid Ongoing FY26 Tariff Determination Process
In a key regulatory development, the Karnataka Electricity Regulatory Commission (KERC) has extended the current solar power tariff order until June 30, 2025. The decision comes as the Commission continues its deliberations and stakeholder consultations for determining the solar tariff structure applicable for FY2025–26.
This interim extension ensures tariff continuity and policy certainty for ongoing and upcoming solar projects in Karnataka, one of India’s leading states in renewable energy deployment.
Why Has the Tariff Been Extended?
The existing tariff order, originally scheduled to expire before June 2025, will now remain in effect while KERC finalizes its new tariff framework for the next fiscal year. The regulatory authority stated that the extension would avoid disruption for project developers and distribution companies (DISCOMs) during the transition period.
The extension applies to both ground-mounted and rooftop solar PV systems under the jurisdiction of the state’s regulatory purview.
Impact on Solar Developers and Power Purchase Agreements
For developers, the continuation of the existing tariff order provides short-term clarity, especially for projects under implementation or at bidding stages. Power Purchase Agreements (PPAs) signed under the current tariff will remain valid without any pricing uncertainty.
Stakeholders in the renewable energy sector have welcomed the move, citing that predictable tariff regimes are crucial for investor confidence and timely project execution.
KERC is expected to issue the final FY26 solar tariff order after comprehensive data analysis, public consultations, and review of capital costs, operational expenses, and evolving market conditions.
✅ FAQs: KERC Solar Tariff Extension
Q1. What has KERC announced regarding the solar tariff order?
KERC has extended the existing solar tariff order until June 30, 2025.
Q2. Why was the extension necessary?
The extension allows time for KERC to complete the FY2025–26 tariff determination process and prevents policy gaps in the interim.
Q3. Does the extension apply to all solar projects?
Yes, it applies to both ground-mounted and rooftop solar projects under the existing regulatory framework.
Q4. What does this mean for solar developers?
Developers gain pricing clarity for upcoming projects and can proceed with bidding or commissioning based on the current tariff structure.
Q5. When will the new FY26 solar tariff be announced?
The FY26 solar tariff order is expected to be released after the regulatory consultation and evaluation process concludes, likely in the second half of 2025.
Published on: June 12, 2025
Uploaded by: Pankaj
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