The Jharkhand State Electricity Regulatory Commission (JSERC) has released the Draft Regulations for Determination of Tariff for Procurement of Power from Solar PV and Solar Thermal Power Projects, 2025. These regulations apply to the entire state of Jharkhand and will remain in force up to March 31, 2028, unless extended or reviewed earlier by the Commission. The objective is to lay down a clear tariff framework for various solar technologies, including Solar PV, Floating Solar, Solar Thermal, Solar Hybrid, and Solar with Storage projects.
The regulations define important terms and provide clarity on technologies recognized under the purview of the policy. These include Solar PV projects using photovoltaic panels, Floating Solar projects that utilize water bodies, Solar Thermal using concentrated solar power, Hybrid energy projects combining solar with other renewable sources or storage, and Solar with storage solutions. All technologies must be approved by the Ministry of New and Renewable Energy (MNRE).
The tariff for such projects shall primarily be determined through competitive bidding as per Section 63 of the Electricity Act. If bidding is not feasible for projects above 10 MW or in cases where the project size is below 10 MW, the Commission may approve a project-specific tariff. For all projects, capital cost, capacity utilization factor, auxiliary consumption, return on equity, interest on loan and working capital, depreciation, and O&M costs are considered for tariff design.
Solar PV, Floating, and Thermal projects must meet minimum capacity utilization factors (CUF) of 21%, 19%, and 23% respectively. For hybrid projects, the minimum CUF is 30%. Maximum auxiliary consumption is capped at 0.75% for Solar PV and Floating, and 10% for Solar Thermal. The useful life for most solar projects is defined as 25 years.
The draft also introduces rules for energy generated beyond approved capacity utilization. Such excess energy may be sold in the market, with the first right of refusal given to the procuring entity at the same tariff rate. O&M expenses will escalate annually at 5.25% during the tariff period.
For Solar with Storage projects, efficiency thresholds have been established at 85% for solid-state batteries and 75% for pumped storage systems. The tariff for these projects may be either composite or differential based on time-of-day supply agreements.
Incentives, subsidies, and grants provided by the government must be accounted for during tariff determination. Accelerated depreciation benefits will also be factored into tariff calculations. Projects commissioned after the effective date of Jharkhand’s Industrial and Investment Promotion Policy 2021 and Solar Policy 2022 will be eligible for additional financial incentives.
Scheduling, metering, and grid integration have also been covered in the regulations. Solar projects above specific capacities must follow grid codes and may be asked to back down for grid security. Real-time data sharing with SLDC and RLDC has been mandated. Outage planning and billing norms have been specified along with payment timelines, rebate structures, and late payment surcharges.
These draft regulations aim to provide a comprehensive framework for promoting solar energy in Jharkhand, aligning with national renewable goals while ensuring financial and operational viability for developers and distribution licensees.
