BENGALURU: The Karnataka Electricity Regulatory Commission (KERC) has fixed Rs 4.36 per unit as the new tariff for new grid-connected megawatt (MW)-scale solar photovoltaic plants. This is the tariff solar developers selling power to the grid will get from the distribution utilities.
The new tariff is applicable to solar projects that will sign power purchase agreements (PPAs) with distribution utilities during the financial year (2017-18). The tariff is also applicable to all those grid-connected MW-scale solar PV plants for which PPAs were signed earlier, but will go on stream only during this financial year.
The regulator has allowed a capital cost of Rs 4.40 crore per MW, and a return on equity (RoE) at 16% for developers. The developers can raise debt up to 70% of project cost and the regulator has allowed debt repayment over a period of 12 years.