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GERC Approves Rs2.83/kWh Tariff for PM-KUSUM Component-C Solar Projects
May 28, 2025
The Gujarat Electricity Regulatory Commission (GERC) has approved a tariff of Rs2.83/kWh for solar power projects installed under Component-C of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program. The tariff will apply to surplus energy supplied by farmers to the grid, aligning with a 2019 precedent and petitions from Gujarat’s four DISCOMs—UGVCL, MGVCL, DGVCL, and PGVCL—along with GUVNL.
Despite objections from Gujarat Krushi Vikas Grahak Suraksha Sangh, which sought a higher tariff of Rs5/kWh and a lower minimum participation threshold (from 70% to 50%), the Commission retained the existing 70% criterion, citing the need for consistency with the Suryashakti Kisan Yojana and feeder self-sufficiency.
GERC found the Rs2.83/kWh tariff competitive and necessary to incentivize agricultural consumers, who fall under a lower tariff category than residential and industrial consumers. It also affirmed that net energy drawn from the grid will be billed at the regular agricultural rate.
Additionally, the Commission directed the DISCOMs to establish a grievance redressal mechanism within two months, identifying responsible offices for handling disputes. GERC also recently released a draft procedure for renewable energy project connectivity to the state grid, covering developers with or without storage systems, energy parks, and applicants under Open Access Regulations.