Generic Tariff of ₹3.51/kWh Proposed for Small Solar Projects Under KUSUM Program

The tariff will also apply to excess power from grid-connected solarized agriculture pumps

September 17, 2021


The Chhattisgarh State Electricity Regulatory Commission (CSERC) has issued a draft to determine the feed-in-tariff (FiT) for decentralized solar projects with 500 kW to 2MW capacity. These projects come under Component-A of the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM KUSUM) program.

The Commission has proposed generic levelized tariffs of ₹3.51 (~$0.048)/kWh for solar photovoltaic (PV) projects. The tariff applies to projects achieving commercial operation during the financial year (FY) 2021-22.

The Commission also proposed a tariff to purchase excess power from solarized agriculture pumps under Component-C of the KUSUM program. Stakeholders can submit comments and suggestions by October 5, 2021.


The Ministry of New and Renewable Energy (MNRE) had allocated 30 MW of solar projects under the program to Chhattisgarh for FY 2021. The Chhattisgarh State Power Distribution Company (CSPDCL)  is the nodal agency for implementing the program.

The state distribution company (DISCOM) is preparing bidding documents to invite a request for proposal (RfP), to select developers through tender-cum-reverse-auction process.

The state DISCOM will also supporting farmers to solarize their grid-connected agriculture pumps, under Component-C, by purchasing excess power from the farmer at the rate decided by the Commission.

The DISCOM has now requested the Commission to approve feed-in-tariff for projects to be developed under the program.

Proposed Tariff-

The Commission has proposed a generic levelized tariff of ₹3.51 (~$0.048)/kWh for solar projects between 500 kW to 2 MW capacity. The tariff is for projects achieving commercial operation during FY 2021-22.

The tariff is applicable to solar projects, with a long-term power purchase agreement with state DISCOMs.

Since it is the middle of FY 2021-22, DISCOM may not complete the bidding process by the end of the FY; thus the Commission has proposed extending the tariff until DISCOM concludes the bidding process under the KUSUM program.

The tariff will act as a ceiling tariff for competitive bidding for solar projects under Component-A.

The Commission has also proposed a tariff of ₹3.51 (~$0.048)/kWh for DISCOM purchasing excess power from grid-connected solarized agriculture pumps. The proposed tariff is for FY 2021-22 and 2022-23.

The tariff applies for the entire useful life of the grid-connected solar pumps set up under Component-C of the program. The DISCOM would settle the bills monthly.

The tariff applies for the capacity or number of consumers initially allocated to the state by the MNRE under Component-C the program.

In Madhya Pradesh, a pre-fixed levelized tariff of ₹3.07 (~$0.042)/kWh is applicable for projects under Component A of the KUSUM program. The tariff is for the entire life of projects commissioned until March 31, 2024.

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Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.