KERC proposes lower solar power tariffs for subsidy beneficiaries from July 2026

Published 18 June 2026 · india

The Karnataka Electricity Regulatory Commission (KERC) has released a draft notification of the revised solar power tariffs for a period of three years from July

The Karnataka Electricity Regulatory Commission (KERC) has released a draft notification of the revised solar power tariffs for a period of three years from July 1, 2026 to June 30, 2029. The rates issued are different for different kilowatts generated and also depends on the production volume. These rates will be applicable to solar power generated under various solar power projects, including PM Surya Ghar Yojana and Distributed Solar Photovoltaic (DSPV). The time limit for people to raise objections has been extended till June 30, 2026 following which a public hearing will be held and prices finalised. As per the revised tariffs, if consumer is generating electricity by installing solar panels without receiving any subsidy from the government, the price at which the consumer sells the extra power generated to the grids is high.

If consumers have received subsidy from the government, the rate for electricity supplied to the grid has been fixed at a lower rate this time. If electricity is generated up to 10 kilowatts without receiving any subsidy from the government, the rate is fixed at ₹3.03 per unit. Under the PM Suryagarh scheme, if the consumers have received subsidy from the government, the rates are different and depends on the units generated. Henceforth, for one to two kilowatts, the government will pay decreased amount of ₹1.87 per unit, for two to three kilowatts, they will pay ₹2.05 per unit, and for more than three kilowatts, it is ₹2.49 per unit.

Until now, the government paid a tariff of ₹2.30 per unit for one to two kilowatts, ₹2.48 per unit for two to three kilowatts, and ₹2.93 per unit for more than three kilowatts of electricity generation to consumers who supplied the electricity generated from solar energy to the grid. Under the Central government’s PM Suryagarh scheme, there is a target of generating solar power on the roofs of 1.02 lakh houses in the State. Already, 80.96 MW of electricity is being generated in 20,152 houses. A total of 6,354.74 MW of solar power is being generated in the State from various sources. Not only roofs, but also courtyards, car parking spaces, and walls can now be used to generate electricity by installing solar panels.

Customers can use the electricity and sell the rest to the grid, said the notification. The notification also stated, “The Central government is providing subsidy ranging from a minimum of ₹30,000 to a maximum of ₹78,000 for solar power generation. Some consumers are taking advantage of this and are coming forward to generate electricity. While they also consume the power generated from this, the surplus power is sold to the power distribution companies.”