HPERC Finalizes Generic Solar PV Tariffs for Financial Year 2026-27

The Himachal Pradesh Electricity Regulatory Commission (HPERC) has issued the generic levelised tariff order for grid-connected solar photovoltaic (PV) projects for financial year 2026-27. Issued under the Renewable Energy Sources Regulations, 2017, these tariffs are applicable to projects where joint petitions for power purchase agreement approval are filed between April 1, 2026, and March 31, 2027.

Standardized Generic Levelised Tariff Schedule

The Commission has finalized the following tariff rates for the 2026-27 applicable period:

Note: The higher rates for Urban and Industrial areas account for increased land and infrastructure costs.

Normative Capital Cost and Capacity Utilization

The Commission derived these tariffs using benchmark financial and technical inputs. The base normative capital cost is established at ₹335.79 lakh/MW for projects in the 3 MW to 5 MW category. Specific cost uplifts for smaller capacities and specific locations are applied as follows:

• Up to 1 MW: 5% cost allowance increase.
• 1 MW to 3 MW: 2.5% cost allowance increase.
• Urban/Industrial Location: Additional ₹7.50 lakh/MW allowance.

Technical parameters include a fixed Capacity Utilization Factor (CUF) of 21%. Gross generation is reduced by 1.45% to account for auxiliary consumption, transformation losses, and project line losses up to the interconnection point.

Financial Assumptions and State Royalty

The financial parameters defined in the order include:

• Debt-Equity Ratio: 70:30.
• Return on Equity (RoE): 14%.
• Interest on Loan: 10.80% per annum.
• O&M Expenses: ₹10.96 lakh/MW for the first year, with a 3.84% annual escalation.

State Government Royalty

In accordance with the amended Swaran Jayanti Energy Policy, a royalty of ₹0.05 per unit is payable to the state government for all projects exceeding 1 MW capacity. This royalty is effective from September 21, 2023, and is treated as a pass-through cost in the monthly billing process.

Scope, Validity, and Exclusions

The application of this tariff order is governed by the following boundaries:

• Applicability: Tariffs apply to projects where the joint petition for Power Purchase Agreement (PPA) approval is filed between April 1, 2026, and March 31, 2027.
• Validity: The approved rates remain valid provided the project is commissioned by March 31, 2028.
• Exclusions: These tariffs do not apply to:
  • Projects exceeding 5 MW (requiring competitive bidding or SECI procurement).
  • Solar rooftop or ground-mounted systems under net-metering arrangements.
  • Projects awarded through competitive bidding under Section 63 of the Electricity Act, 2003.

Procedural Requirements for Developers

Developers must follow a mandated sequence for project commissioning and billing commencement:

1. Submission of project application and Earnest Money Deposit (₹1 Lakh for ≤1 MW; ₹2 Lakh for >1 MW to 5 MW) to HIMURJA.
2. Obtaining the Connectivity Agreement with the Himachal Pradesh State Electricity Board Limited (HPSEBL).
3. Filing the Joint Petition with HPERC for formal PPA approval.
4. Post-installation inspections by the Meter & Testing (M&T) and Protection & Testing (P&T) teams of HPSEBL to test and seal equipment.
5. Obtaining final approval from the Chief Electrical Inspector (CEI) and submission of the telemetry device installation report to the State Load Despatch Centre (SLDC).
6. Application to the HPSEBL Design Office at Sundernagar for synchronization approval. This stage requires a site visit from an Independent Engineer and the HPSEBL team to declare the project successfully commissioned, allowing billing to commence.
7. Final declaration of the Commercial Operation Date (COD) by a committee under the Directorate of Energy following a site inspection and report review.