Feed-in-tariff for solar power mooted

The Kerala State Electricity Regulatory Commission (KSERC) has proposed a feed-in-tariff structure for the electricity generated by solar systems set up under private initiative.

A detailed discussion paper on the proposal has been put up on the commission’s website for eliciting the views and suggestions of the stakeholders.

The commission will hold a public hearing on the proposal (which covers both feed-in-tariff and connectivity standards) before issuing its order in the matter, the commission said in a press release on Friday.

The proposed feed-in-tariff at which the Kerala State Electricity Board (KSEB) will buy the power generated by solar systems set up under private initiative is Rs.12.49 a unit in the case of rooftop installations with capacity to generate up to 100 kW.

The proposed feed-in-tariff in the case of rooftop or ground-mounted solar installations with capacity to generate between 100 kW and 1 MW of power is also Rs.12.49 a unit.

Solar energy generated by ground-mounted systems with capacity exceeding 1 MW is proposed to be bought by the KSEB at a rate of Rs.10.41 a unit.

Two categories

The commission clarified that the solar systems had been put under two categories — megawatt-scale ground-mounted systems and kilowatt-scale rooftop systems — in view of the differences in size, scale and investment required to set up the installations.

The quantity of electricity that will flow into the grid from solar installations will be metered separately for determining the amount the KSEB will have to pay the power developers concerned.

The discussion paper suggests that in view of the decreasing trend in the cost of solar power installations and the need for encouraging the solar energy sector, the feed-in-tariff can be reduced by 7 per cent at a compounded level after each year till 2016-17. The tariff proposed for the first year shall be applicable from the date specified by the commission for projects synchronised before March 31, 2014. Thereafter, the tariff is proposed to be reduced by 7 per cent every year from April 1.


It is further proposed that the distribution licensee will provide connectivity for solar power generators seeking interconnection with the grid in a time-bound manner at the cost of the developer. The cost involved in strengthening the system for receiving the feed-in power from the solar power installations will be the responsibility of the distribution licensee.

The commission has urged the stakeholders to send their comments and suggestions on the feed-in-tariff system to the Secretary, Kerala State Electricity Regulatory Commission, KPFC Bhavanam, Vellayambalam, Thiruvananthapuram, to reach him on or before December 6.

Discussion paper put up on website

KSEB proposed to buy solar power from private initiatives