The Karnataka Electricity Regulatory Commission (KERC) has clarified that consumers who have rooftop or distributed solar photovoltaic (DSPV) systems need not sign new power purchase agreements (PPAs) if they reduce or increase their contracted demand or approved load.

Their existing PPA tariffs and terms will remain in effect.

KERC issued this clarification in response to a representation by the consumers and other stakeholders regarding the treatment of changes by distribution companies/electricity supply companies (ESCOMs) in contracted demand or approved loads.

The representation stated that when consumers were reducing their contracted demand/approved loads to match their needs, or increasing them without increasing the DSPV’s capacity, the ESCOMS were requiring them to sign new PPAs at reduced tariffs, specifically 90% of the existing PPA rates or the prevailing tariff rates, whichever was lower.

The Commission clarified that a new PPA with a lower tariff, which will be 90% of the prevailing amount, will only apply if the consumers increase the solar capacity.

In July this year, KERC issued its generic tariff order for solar power projects. The order is applicable from July 1, 2025, to June 30, 2026. The tariffs apply to MW-scale ground-mounted, DSPV, and rooftop solar projects.

Also, in July, KERC issued the Intra-State Deviation Settlement Mechanism and Related Matters Regulations, 2025, to establish a commercial mechanism to ensure grid users’ adherence to scheduled electricity drawal and injection, and maintain grid security and stability.

Recently, the Commission issued the draft Karnataka Electricity Regulatory Commission (Roadmap for Reducing Cross-Subsidy and Cross-Subsidy Surcharge) Regulations, 2025. The draft regulations seek to formally establish a time-bound roadmap for reducing tariff cross-subsidies across consumer categories and to align retail tariffs more closely with the cost of supplying electricity, consistent with statutory requirements and national tariff policy objectives.

In September, KERC reduced the reimbursement amount payable by Bangalore Electricity Supply Company to Talettutayi Solar Projects Two from ₹117.5 million (~$1.33 million) to ₹111.9 million (~$1.27 million), following corrections in a review petition.

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