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Haryana Finalizes Tariff Determination Rules for Renewable Energy Projects (2026–2029)

The Haryana Electricity Regulatory Commission (HERC) has released the terms and conditions for tariff determination applicable to all grid-connected renewable energy (RE) projects and obligated entities in the state. The new framework will be effective from April 1, 2026, to March 31, 2029.

Key Highlights

• Applicability: Covers solar, wind (onshore/offshore), hybrid, floating solar, and renewable projects with energy storage systems.

• Eligibility:

• Solar technologies must be approved by MNRE and HAREDA.

• Hybrid projects must include at least 33% of another renewable source at a common interconnection point.

Tariff Framework

• A single-part tariff will include return on equity, loan interest, depreciation, working capital interest, and O&M costs.

• Must-run status applies to all renewable projects (except biomass) of 10 MW and above.

• Generic tariff will be determined for the project’s full life cycle using a weighted average cost of capital as the discount factor.

Financial Parameters

• Debt-equity ratio: 70:30 (equity above 30% treated as a loan).

• Loan tenure: 15 years, with the SBI MCLR + 200 bps as the benchmark interest rate.

• Depreciation: 90% of project cost; 4.67% per year for the first 15 years.

• Return on equity: 14% per annum.

• O&M escalation: 3.45% annually.

Carbon Credits & Tax

• Project developers retain 100% of CDM proceeds in the first year; beneficiaries’ share increases to 50% over time.

• Accelerated depreciation benefits will be factored in when computing tariffs.

Technology-Specific Guidelines

• Wind projects: CUF to range from 22%–35%, depending on site wind density.

• Solar projects:

• CUF: 21% (ground-mounted), 19% (floating)

• 0.25% auxiliary consumption

• Minimum CUF for hybrid systems: 30%

• Storage systems: Minimum efficiency of 80% (battery) and 75% (pumped storage).

RPO & Transmission

• Obligated entities (DISCOMs, open access consumers) must meet RPO targets via RE procurement or Renewable Energy Certificates (RECs).

• Failure to comply will attract penalties and temporary open access restrictions.

• Transmission costs up to 10 km from the interconnection point will be borne by the state transmission utility; beyond that, costs will be shared equally with developers.

Implementation

The regulations strengthen Haryana’s policy framework to ensure cost transparency, investment stability, and clean energy integration in line with national renewable targets.