The Bihar Electricity Regulatory Commission (BERC) has approved the tariffs discovered through competitive bidding for procuring nearly 275 MW of rooftop solar power from about 250,000 Kutir Jyoti consumers across Bihar.

The projects will be implemented by South Bihar Power Distribution Company and North Bihar Power Distribution Company under the Utility-Led Aggregation-cum-Renewable Energy Service Company model.

The Commission adopted the weighted average reverse auction-discovered tariff of ₹2.82 (~$0.030)/kWh for all 18 packages. The tariff will apply for 10 years.

The Commission also approved the procurement of rooftop solar power from systems installed at the premises of Kutir Jyoti consumers across 18 circles in Bihar.

However, it deferred approval of the draft power purchase agreement and connected prayers until the distribution companies (DISCOMs) file a revised draft.

Background

The petition was filed by South Bihar Power Distribution Company and North Bihar Power Distribution Company seeking adoption of tariffs discovered for rooftop solar projects under the PM Surya Ghar: Muft Bijli Yojana.

Under the proposed structure, each eligible Kutir Jyoti consumer will receive a 1.1 kW rooftop solar system consisting of two 550 W modules. The aggregate capacity of the first phase is about 275 MW.

The Bihar government had earlier approved financial assistance of ₹10,000 (~$104.72) per Kutir Jyoti consumer for installing 1.1 kW rooftop solar systems. The Ministry of New and Renewable Energy approved the proposal of the Bihar DISCOMs under the Utility-Led Aggregation model.

The central financial assistance under the program is ₹33,000 (~$345.59)/consumer. The state will provide ₹10,000 (~$104.72)/consumer. The remaining project cost will be recovered by the Renewable Energy Service Company developer through tariffs paid by DISCOMs over 10 years.

The final tariffs across the 18 packages ranged from ₹1.99 (~$0.021)/kWh to ₹3 (~$0.031)/kWh.

The DISCOMs submitted that the projects would help reduce the state subsidy burden for Kutir Jyoti consumers, who receive up to 125 units of free electricity per month. A 1.1 kW rooftop solar system is expected to generate nearly 125 units per month.

Commission’s Analysis

The Commission observed that the bidding process was conducted in a fair, transparent, and competitive manner in line with the Ministry of New and Renewable Energy guidelines and the Electricity Act, 2003.

It noted that the Utility-Led Aggregation-cum-RESCO model provides for DISCOM-appointed developers to install rooftop solar systems at identified consumer premises, maintain them for 10 years, and recover investments through a per-kWh tariff paid by the DISCOMs.

The Commission found that the weighted average tariff of 2.82 (~$0.030)/kWh was substantially lower than the current state subsidy burden of ₹7.42 (~$0.078)/kWh for Kutir Jyoti consumers.

It said the initiative would increase local generation, reduce power purchase costs, lower transmission and distribution losses, improve supply reliability, and help the Bihar DISCOMs meet their renewable purchase obligation targets.

The Commission also noted that nearly 275 MW of rooftop solar capacity was expected to generate around 325 million units in the first year. This generation will be treated as distributed solar generation and credited to the DISCOMs’ renewable purchase obligation accounts.

The petitioners also sought relaxation from the sanctioned load limit under the rooftop solar regulations. Under the existing framework, rooftop solar capacity is linked to the consumer’s sanctioned load. Since many Kutir Jyoti consumers have sanctioned loads of only 250 W, the existing provisions would restrict them from installing a 1.1 kW rooftop solar system.

The Commission approved the relaxation, allowing eligible consumers to install rooftop solar systems up to 1.1 kW without changing their approved load.

It also approved relaxation in the net metering billing methodology to allow self-generated and self-consumed solar energy to be accounted for under the scheme.

The Commission left the issue of approving the draft power purchase agreement open. It directed that the matter be listed for further hearing after the DISCOMs file a revised draft PPA and connected prayers.

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