Karnataka Slashes Solar Feed-In Tariffs

Karnataka's electricity regulator has put forth new proposals for solar power tariffs, which could lead to reduced rates for households selling surplus energy to the grid. These revised tariffs, if approved, are slated to take effect from July 1, 2026, and will remain in place until June 30, 2029. The Karnataka Electricity Regulatory Commission (KERC) has opened a window for public objections and suggestions until June 30, 2026, before a final decision.

The proposed changes differentiate between consumers based on whether they received government subsidies. Those who installed solar systems without subsidies will receive a higher rate of ₹3.03 per unit. Conversely, consumers who benefited from subsidies, such as under the PM Surya Ghar scheme, will see their compensation rates decrease. For instance, rates for subsidized systems of one to three kilowatts will range from ₹1.87 to ₹2.05 per unit, with larger systems receiving ₹2.49 per unit.

These proposed rates represent a notable reduction compared to current compensation levels. The KERC highlighted that the Central government offers substantial subsidies for solar power installations, ranging from ₹30,000 to ₹78,000. In Karnataka, the PM Surya Ghar initiative aimed to equip 1.02 lakh households with rooftop solar systems, with over 20,000 homes already participating and contributing significantly to the state's solar generation capacity.