Rooftop solar users in Karnataka have urged KERC to waive fixed electricity charges, arguing that the proposed reduction in export tariffs could lower the financial benefits of investing in solar systems.

Karnataka Rooftop Solar Users Seek Fixed Charge Waiver Amid Tariff Cut Proposal

Rooftop solar consumers in Karnataka are urging the Karnataka Electricity Regulatory Commission (KERC) to waive fixed electricity charges after the regulator proposed reducing tariffs for surplus solar power exported to the grid. Consumers argue that while lower equipment costs have prompted KERC to propose lower tariffs, the continued levy of fixed charges could reduce the financial benefits of investing in rooftop solar systems.

Under KERC's draft tariff proposal for the 2026–29 control period, it has been suggested that such an export tariff will experience a reduction. Domestic customers that install rooftop solar systems not exceeding 10 kW will be subjected to an export tariff that has been cut down from ₹3.86 per unit to ₹3.03 per unit, while non-domestic customers with distributed solar projects may enjoy a drop in tariffs from ₹3.08 per unit to ₹2.37 per unit.

After making the proposal, rooftop solar users have asked that the monthly charges for electricity consumption be scrapped for those producing their own power. Fixed charges make savings difficult and lower investment incentives in green energy solutions even when individual homes use less power from the grid. According to consumer associations, these charges would make rooftop solar plants more economical.

Consumer representatives have also noted that Karnataka has been one of the leading states in encouraging solar power distribution via net metering in India. They have said that reducing the export tariff but keeping the fixed charge could increase the payback period of the rooftop solar system, thus dissuading potential consumers from investing in it.

KERC has argued that the proposal for tariff revision is based on the reducing costs associated with installation of roof top solar power plants. However, KERC has separately framed tariff rates for people who have availed the benefit of PM Surya Ghar: Muft Bijli Yojana with subsidised tariffs varying from Rs. 1.87 to Rs. 2.49 per unit.

Renewable Energy experts say the proposal presents a mixed picture where lower costs of installations could possibly offset reduced export duties, but higher fixed costs would weaken the economics of rooftop solar power. They believe that policy consistency and favourable consumer laws would play an important role in the further development of rooftop solar power systems in India.

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