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					</table><p>The Rajasthan Electricity Regulatory Commission <a href="https://www.mercomindia.com/rerc-load-factor-rebate-cement-company-captive-solar-project" target="_blank" rel="noopener">rejected</a> a petition filed by Shree Cement seeking the grant of a load factor rebate by Jaipur Vidyut Vitran Nigam (JVVNL) for electricity consumption at its Jobner cement unit. The Commission held that the company’s captive solar project qualifies as a behind-the-meter installation and is therefore not eligible for load factor computation under the applicable tariff order.</p>
<p>The Uttarakhand Electricity Regulatory Commission (UERC) <a href="https://www.mercomindia.com/uttarakhand-regulator-asks-upcl-to-set-solar-non-solar-hours-for-tariffs" target="_blank" rel="noopener">decided</a> to retain the existing time-of-day tariff structure and defer any immediate changes to peak and off-peak hours, even as it initiates a formal consultation on introducing hour-linked tariffs for solar and non-solar energy in line with central rules. The Commission has maintained the current peak surcharge of 30% and the off-peak rebate of 25%, citing the absence of adequate smart-meter–based, time-block-wise consumption data and the ongoing rollout of advanced metering infrastructure across the state.</p>
<p>Electric vehicle (EV) sales in India <a href="https://www.mercomindia.com/electric-vehicle-sales-clock-16-yearly-growth-in-2025-reach-2-3-million-units" target="_blank" rel="noopener">reached</a> a record 2.27 million units in 2025, an over 16% year-over-year increase from 1.95 million units sold in 2025. EVs accounted for 8% of overall automobile sales, according to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard. The EV market consistently surpassed the 100,000-unit mark each month, with October recording the highest sales at 236,629 units, followed by November at 218,641 units and March at 205,299 units.</p>
<p>EIE Renewables <a href="https://www.mercomindia.com/eie-renewables-win-wbsedcls-10-mw-rooftop-solar-auction" target="_blank" rel="noopener">won</a> the West Bengal State Electricity Distribution Company’s auction to install 10 MW of grid-connected rooftop solar systems. The tender was floated in September last year. The systems will be installed on state government buildings spread across eight districts, namely Medinipur (1.5 MW), Bankura (1.5 MW), Kolkata South (1.5 MW), Kolkata North (1.5 MW), Bardhaman (1 MW), Berhampore (1 MW), Malda (1 MW), and Siliguri (1 MW).</p>
<p>FCI Aravali Gypsum and Minerals India, a government of India enterprise, <a href="https://www.mercomindia.com/fci-aravali-gypsum-tenders-2-52-mw-of-solar-projects" target="_blank" rel="noopener">invited</a> bids for the supply, commissioning, and operation of 2.52 MW ground-mounted solar power projects on a build-own-operate basis for 25 years. The projects will be located at Bhawad, Osian, and Jodhpur in Rajasthan. The ceiling tariff has been set at ₹3.32 (~$0.037)/MW. The last date to submit the bids is January 21, 2026, and bids will be opened the following day.</p>
<p>Industries that run 24X7 have a high power <a href="https://www.mercomindia.com/snacks-maker-morano-namkeen-goes-solar-saves-%E2%82%B98-million-annually" target="_blank" rel="noopener">demand</a>. With rising grid tariffs, power costs place a heavy burden on businesses. Installing rooftop solar systems can significantly mitigate the problem. One such example is that of a snacks manufacturer, Morano Namkeen, which is saving ₹8 million (~$88,728) annually from an 850-kW rooftop solar project installed at its facility in Kanpur, Uttar Pradesh.</p>
<p>Bihar State Power Generation Company (BSPGCL) <a href="https://www.mercomindia.com/bihar-commissions-first-phase-of-301-mw-495-mwh-solar-plus-bess-project" target="_blank" rel="noopener">commissioned</a> the first phase of the 301 MW/495 MWh solar-plus-battery project in Kajra, Lakhisarai district, Bihar. The project is being executed in two phases. The first phase includes a 185 MW/254 MWh solar-plus-BESS project, developed at a cost of ₹18.1 billion (~$200.74 million). In the second phase, BSPGCL will develop a 116 MW/241 MWh project at a cost of ₹10.55 billion (~$117 million).</p>
<p>Singapore-based Blueleaf Energy, owned by the Macquarie Asset Management Fund, in partnership with Universal Peak, has been <a href="https://www.mercomindia.com/blueleaf-wins-100-mw-400-mwh-battery-energy-storage-project-in-malaysia" target="_blank" rel="noopener">selected</a> by Malaysia’s Energy Commission to build and operate a 100 MW/400 MWh utility-scale battery energy storage system. The Blueleaf-Universal Peak consortium bagged the project in an auction that involved 28 bids, of which four were selected.</p>
<p>The Grid Controller of India <a href="https://www.mercomindia.com/grid-india-proposes-automatic-generation-control-for-renewable-energy-projects" target="_blank" rel="noopener">proposed</a> extending automatic generation control (AGC) to large-scale renewable energy projects above 100 MW, battery energy storage systems, and pumped-storage projects. Stakeholders can submit comments and suggestions by January 31, 2025. Primarily used for conventional power sources, AGC can address the intermittency of renewable energy by regulating power generation from renewable energy projects based on demand.</p>
<p>Inox Clean Energy, the renewable arm of the INOXGFL Group, along with its subsidiary, Inox Solar, <a href="https://www.mercomindia.com/inox-clean-secures-%E2%82%B931-billion-equity-to-scale-ipp-and-solar-manufacturing" target="_blank" rel="noopener">raised</a> equity totaling ₹31 billion (~$342.83 million), valuing the company at ₹500 billion (~$5.54 billion) pre-money. The equity round attracted participation from foreign and domestic investors, including the California Public Employees’ Retirement System, a U.S. pension fund, SUN Group Global, Authum Investment, Akash Bhansali, other family investors, and high net-worth individuals.</p>
<p>The Indian Energy Exchange <a href="https://www.mercomindia.com/iexs-traded-electricity-volume-up-12-in-q3-fy-2026" target="_blank" rel="noopener">traded</a> a monthly electricity volume of 34.08 billion units (BU) during the third quarter of the financial year 2026, an 11.9% year-over-year (YoY) increase. In December 2025, the exchange traded 11.44 BU, rising 2.8% YoY. According to government data published in December 2025, India’s energy consumption reached 138.39 BUs, rising 7% YoY.</p>
<p>The European Union (EU) <a href="https://www.mercomindia.com/european-unions-cbam-puts-a-carbon-cost-on-indias-exports" target="_blank" rel="noopener">began</a> implementing the definitive phase of its Carbon Border Adjustment Mechanism (CBAM), a policy that will attach a carbon-linked cost to imports of carbon-intensive goods such as iron and steel, aluminum, cement, fertilizers, hydrogen, and electricity. EU says CBAM is meant to put a fair price on carbon emitted during the production of goods entering the EU and to ensure European manufacturers are not undercut by imports made under looser climate rules.</p>



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					</table><p>The Uttarakhand Electricity Regulatory Commission (<a href="https://uerc.uk.gov.in/" target="_blank" rel="noopener">UERC</a>) has decided to retain the existing time-of-day (ToD) tariff structure and defer any immediate changes to peak and off-peak hours, even as it initiates a formal consultation on introducing hour-linked tariffs for solar and non-solar energy in line with central rules.</p>
<p>The Commission has maintained the current peak surcharge of 30% and the off-peak rebate of 25%, citing the absence of adequate smart-meter–based, time-block-wise consumption data and the ongoing rollout of advanced metering infrastructure across the state.</p>
<p>While retaining the existing framework for now, the Commission has directed Uttarakhand Power Corporation (<a href="https://upcl.uk.gov.in/" target="_blank" rel="noopener">UPCL</a>) to propose revised ToD slots, solar-versus-non-solar hour differentiation, and a revenue-impact assessment in the FY 2026–27 tariff petition.</p>
<p>It has also invited feedback from stakeholders by January 31, 2026.</p>
<p><strong>Background</strong></p>
<p>The Ministry of Power notified the Electricity (Rights of Consumers) Amendment Rules, 2023, on June 14, 2023, which inserted a new Rule 8A mandating the implementation of ToD tariffs.</p>
<p>The amended rules require ToD tariffs for commercial and industrial (C&amp;I) consumers with contracted demand above 10 kW by April 1, 2024, and for all other consumers, except agriculture, by April 1, 2025.</p>
<p>The rules also prescribe that peak-hour tariffs must be at least 1.2 times the normal tariff for C&amp;I consumers, while tariffs during solar hours must be at least 20% lower than the normal tariff.</p>
<p>Solar hours are to be defined as eight hours per day by the respective state commissions, with the condition that peak-hour duration should not exceed solar hours, and that ToD applies only to the energy charge component.</p>
<p>In Uttarakhand, the existing ToD framework does not distinguish between solar and non-solar hours and has historically been implemented only for select categories. The Commission noted that ToD implementation for several consumer classes had been deferred due to limited smart meter penetration and the lack of reliable, time-block-wise consumption data.</p>
<p>During tariff proceedings for FY 2025–26, Uttarakhand Power Corporation (UPCL) proposed introducing ToD tariffs after wider smart meter deployment, while in its FY 2026–27 submissions, it sought further deferment to FY 2027–28.</p>
<p>Stakeholders, meanwhile, demanded equalization of peak surcharge and off-peak rebate, abolition or reduction of peak hours, higher off-peak rebates, and alignment of ToD slots with industrial operations.</p>
<p>Smart meter deployment in the state began in August 2024, with UPCL targeting completion by July 2025 for high-tension (HT) consumers and June 2026 for low-tension (LT) consumers.</p>
<p>The Commission has directed that installations for HT industrial consumers be completed by June 2025 and for LT consumers by August 2025, and that monthly time-block-wise consumption data be submitted for all consumers with smart meters.</p>
<p><strong>Commission’s Analysis</strong></p>
<p>The Commission undertook an analysis of unrestricted load curves for winter and summer periods to assess demand patterns.</p>
<p>The data showed a pronounced morning peak during winter months, often exceeding evening demand, with peaks such as 2,523 MW at 8:00 am on January 29, 2025, and 2,477 MW on February 7, 2025. Evening peaks during winter were lower, while summer demand peaked late at night, with a maximum of 2,863 MW at 10:00 pm on June 14, 2024.</p>
<p>Based on this, the Commission rejected stakeholder demands to abolish morning peak hours, holding that such peaks persist from October to March and are critical for demand-side management.</p>
<p>The Commission traced the evolution of ToD charges, noting that peak surcharges were initially set at 50% above the normal tariff in FY 2010-11 and reduced to 30% by FY 2022, while off-peak rebates were gradually increased from 10% to 25% by FY 2025–26. It concluded that the current structure remains appropriate until more granular data becomes available.</p>
<p>A key regulatory gap identified is the lack of explicit definitions of solar hours and tariff signals, rendering the existing framework non-compliant with the 2023 Rules.</p>
<p>To address this, the Commission conducted a comparative analysis of ToD frameworks in 18 states, which showed wide variation in solar hour windows, rebate structures, and peak surcharges, including percentage-based and fixed ₹/kWh mechanisms, seasonal differentiation, and separate treatment for HT and LT consumers.</p>
<p>After receiving stakeholder inputs, UERC will take a final view on implementing a solar-linked ToD tariff regime once smart meter data becomes available.</p>
<p>In December 2025, UERC <a href="https://www.mercomindia.com/uttarakhand-includes-bess-in-renewable-energy-tariff-regulations" target="_blank" rel="noopener">issued</a> the second amendment to UERC (Tariff and Other Terms for Supply of Electricity from Renewable Energy Sources and non-fossil fuel based Co-generating Stations) Regulations, 2023 (Principal Regulations).</p>
<p>Subscribe to our real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure that you never miss any critical updates from the renewable energy industry.</p>


Uttarakhand Regulator Asks UPCL to Set Solar, Non-Solar Hours for Tariffs

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