UPERC Adopts Tariffs for 22.4 MW PM-KUSUM Component-C2 Projects in Meerut and Muzaffarnagar

The Uttar Pradesh Electricity Regulatory Commission (UPERC) has ratified the adoption of tariffs for 22.4 MW of solar capacity, providing a significant boost to the state’s feeder-level solarization targets. In an order issued July 8, 2026, regarding Petition No. 2382 of 2026, the Commission greenlit seven projects located across the Meerut and Muzaffarnagar districts. The projects involve the U.P. New & Renewable Energy Development Agency (UPNEDA) as the implementing body and Uttar Pradesh Power Corporation Ltd. (UPPCL) as the procurer, with individual developer Jitendra Kumar (operating as Jeet Energy) set to lead the implementation.

Project Specifics and Substation Allocation

The approved capacity is distributed across seven strategic substations. Notably, the bidding process revealed a competitive landscape where most projects hit the absolute ceiling tariff of ₹2.99/kWh, while the Bhamori substation in Meerut secured a significant discount at ₹2.86/kWh.

All Power Purchase Agreements (PPAs) for these projects were executed on May 17, 2025. While the developer initially intended to incorporate a private limited Special Purpose Vehicle (SPV), the Commission accepted the use of the proprietorship firm, Jeet Energy, to prevent the loss of Central Financial Assistance (CFA) following administrative difficulties in meeting the December 2025 incorporation deadline.

Programmatic Context: Reaching the 53% Milestone

These projects are a vital component of the PM-KUSUM Component C2 initiative, which aims for a cumulative state target of 2,553.5 MW through feeder-level solarization. With the inclusion of these latest projects, the Commission has now approved a cumulative capacity of 1,355.5 MW across 449 PPAs.

This progress indicates that Uttar Pradesh has officially crossed the halfway mark, achieving approximately 53% of its total programmatic target. The strategy remains focused on optimizing power purchase costs for UPPCL while providing enhanced energy security for the state’s agricultural sector.

Operational Framework: The RESCO Implementation Model

Under the Renewable Energy Service Company (RESCO) model, the developer is responsible for the financing, installation, and long-term operation of the plants. Key operational mandates include:

• PPA Structure: A 25-year agreement executed directly between the developer and UPPCL, with UPNEDA serving as the state’s nodal implementing agency.
• Land-Lease Economics: Developers secure land from local farmers or landowners with lease rents typically ranging from ₹25,000 to ₹50,000 per acre per year. These agreements generally include a 3% annual increment to ensure fair long-term compensation.
• CUF Requirements: To remain eligible for full Central Financial Assistance, the projects must maintain a minimum Capacity Utilization Factor (CUF) of 19%. This performance metric is critical for the overall bankability of the feeder solarization model.

Regulatory Oversight: The GST “Change in Law” Pass-Through

A central feature of this regulatory order is the management of tax-related “Change in Law” events. Because the PPAs were signed in May 2025—months before the Central Government reduced the GST on renewable energy devices from 12% to 5% on September 22, 2025—these projects are subject to mandatory tariff revisions.

Under Petition No. 75/SM/2026, UPERC ruled that this tax reduction represents a financial gain that must be passed through to the end consumer. To prevent developers from realizing windfall gains on equipment purchased at the lower tax rate, the following mechanism is in place:

1. Expert Committee Assessment: An Expert Committee for each DISCOM will conduct a project-wise audit to confirm a “one-to-one correlation” between specific equipment invoices and the reduced tax rate.
2. Strict Timelines: Developers must submit their GST impact calculations within 45 days of the Commercial Operation Date (COD). The Expert Committee is then required to finalize the tariff adjustment within 90 days of the COD.
3. Tariff Readjustment: The final levelized tariff will be revised downward to reflect the actual reduction in capital expenditure resulting from the tax cut.

Official Sources & Citations

• Uttar Pradesh Electricity Regulatory Commission (UPERC)
• UPERC Petition No. 2382 of 2026: Order for Adoption of Tariff for 22.4 MW Solar Power Plants under PM-KUSUM Component-C2. (Issued July 8, 2026).
  • Official Portal: https://www.uperc.org
• UPERC Petition No. 75/SM/2026: Suo Motu Order on the Impact of Reduction in GST Rate on Renewable Energy Devices under PM-KUSUM Component-C2. (Issued June 2026).
  • Official Portal: https://www.uperc.org
• UPERC Petition No. 2268 of 2025: Order for Adoption of Tariff for 82.6 MW Solar Projects under PM-KUSUM Component-C2. (Issued November 19, 2025).
  • Official Portal: https://www.uperc.org
• UPERC Petition No. 2253 of 2025: Order for Adoption of Tariff for 67.5 MW Solar Projects under PM-KUSUM Component-C2. (Issued December 9, 2025).
  • Official Portal: https://www.uperc.org
• Odisha Electricity Regulatory Commission (OERC)
• OERC Case No. 48/2024: Order on Approval of Tariff for Feeder Level Solarisation (FLS) under KUSUM-C (Component C2) and Draft PPA for Odisha DISCOMs. (Issued December 19, 2024).
  • Official Portal: https://www.orierc.org
• Ministry of New and Renewable Energy (MNRE), Government of India
• MNRE Comprehensive Guidelines: Guidelines for Implementation of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme. (Issued January 17, 2024).
  • Official Portal: https://mnre.gov.in
• PM-KUSUM Component-C FLS Portal: Official landing page for Feeder-Level Solarization details.
  • Direct Link: https://pmkusum.mnre.gov.in/#/landing/more-about-C-FLS
• State Implementing Agencies
• U.P. New & Renewable Energy Development Agency (UPNEDA): Implementing agency for PM-KUSUM in Uttar Pradesh.
  • Official Website: https://upneda.org.in
• Odisha Renewable Energy Development Agency (OREDA): Nodal agency for renewable energy in Odisha.