PSERC Approves ₹2.97/kWh Tariff for PSPCL’s 4 MW Solar Procurement from Punjab Water Resources Department

On February 6, 2026, the Punjab State Electricity Regulatory Commission (PSERC) issued an order granting tariff approval for Punjab State Power Corporation Limited’s (PSPCL) procurement of solar power. The decision authorizes PSPCL to procure energy from a 4 MW solar project developed by the Punjab Water Resources Department (Government of Punjab) at an approved tariff rate of ₹2.97/kWh.

Tariff Determination and Regulatory Benchmarking

The approved rate of ₹2.97/kWh is the specific Feed-in Tariff (FiT) determined by the Commission for the fiscal year (FY) 2026-27. In this regulatory context, the rate is derived from the established FiT ceiling for intra-state solar procurement.

• Benchmark Period: FY 2026-27 (FiT)
• Procurement Type: Intra-state solar power

The tariff is applicable to net billing and gross metering arrangements as defined under the regulatory framework of Petition No. 70 of 2025.

Terms of Approval and PPA/PSA Clarifications

The Commission’s approval is narrowly restricted to the tariff rate of ₹2.97/kWh. PSERC has explicitly clarified that it has not granted pre-approval for any other terms and conditions contained within the Power Purchase Agreement (PPA) or Power Sale Agreement (PSA). Consequently, the legal validity of the specific clauses within these agreements remains subject to separate petitioning or the demonstration of compliance with standard PSERC bidding guidelines.

Operational Context and Timelines

The approval for this 4 MW procurement was processed within the broader context of Petition No. 70 of 2025, which concerns the True-up of FY 2024-25 and the Annual Revenue Requirement (ARR) for the 4th Control Period. This control period extends from FY 2026-27 to FY 2028-29. The procurement figures remain fixed at 4 MW and ₹2.97/kWh as part of the utility’s submissions regarding power purchase costs for the upcoming fiscal cycle.

Project Summary