Assam Approves Tariff of ₹4.37/kWh for Rooftop Solar on Government Buildings

• Published
• By Anupam Nath

The Assam Electricity Regulatory Commission (AERC) has taken a significant step to promote renewable energy by approving a ceiling tariff of ₹4.37 (~$0.049)/kWh for rooftop solar installations on government buildings. This move comes under the PM Surya Ghar: Muft Bijli Yojana and aims to accelerate the adoption of clean, affordable energy across the state.

Background of the Proposal

The Assam Power Distribution Company Limited (APDCL) had initially filed a petition seeking approval for a higher ceiling tariff. Based on its calculations and capacity utilization factors (CUF), APDCL proposed a rate of ₹5.42 (~$0.061)/kWh. They argued that this rate would allow developers to bid competitively and implement rooftop solar projects across state and central government buildings, autonomous bodies, and subordinate offices.

APDCL also pointed out that according to the methodology set by the Ministry of New and Renewable Energy (MNRE), tariffs could vary based on CUF and project costs. In fact, their data suggested that at a CUF of 13.04%, the tariff could even rise to ₹5.61/kWh. With this in mind, APDCL requested approval at ₹5.42/kWh as a fair benchmark for bidding.

Commission’s Analysis and Decision

However, AERC reviewed the petition critically. The Commission noted that the CUF proposed by APDCL (13.5%) was lower than what was already being achieved by existing solar plants in Assam. Using actual performance data from the state load dispatch center, AERC found that CUF levels were closer to 16%.

To ensure fair pricing and consumer benefit, AERC recalculated the tariffs using this higher CUF value, along with a 14% return on equity. Based on these revised parameters, the Commission determined that ₹4.37/kWh was a more reasonable ceiling tariff. This tariff will now serve as the upper limit for the competitive bidding process under the Renewable Energy Service Company (RESCO) model.

Implications for Assam’s Clean Energy Future

This decision is a landmark in Assam’s renewable energy journey. By lowering the tariff from the proposed ₹5.42/kWh to ₹4.37/kWh, AERC has ensured that government institutions will receive solar energy at an affordable rate, while developers will still have scope to bid competitively.

The RESCO model allows developers to invest in rooftop solar systems, sell the power directly to government buildings, and export any excess electricity to the APDCL grid. This structure ensures that government offices enjoy reduced electricity costs while contributing to Assam’s clean energy transition.

Moreover, the decision aligns with India’s broader renewable energy targets and strengthens Assam’s role in achieving the country’s goal of carbon neutrality by 2070. It also complements earlier directives where AERC had capped solar procurement tariffs at less than ₹3.92/kWh for large-scale projects.

Conclusion

The approval of a ₹4.37/kWh tariff for rooftop solar on government buildings reflects Assam’s balanced approach towards clean energy adoption. It safeguards consumer interests, encourages competitive bidding, and ensures that renewable power becomes an integral part of the state’s infrastructure.

This initiative under the PM Surya Ghar program will not only reduce dependence on fossil fuels but also pave the way for a sustainable and energ

y-secure future for Assam.