Uttarakhand Retains Solar Tariff at ₹4.10/Unit for FY 2026-27, Revises BESS Capacity Charges

The Uttarakhand Electricity Regulatory Commission (UERC) has finalized renewable energy tariffs for FY 2026-27, retaining the generic tariff for ground-mounted solar photovoltaic (PV) projects at ₹4.10 per kWh. The decision comes after reviewing feedback from 36 stakeholders and reversing an earlier draft proposal that suggested reducing the tariff to ₹3.96 per kWh. According to the Commission, factors such as module price volatility, exchange-rate fluctuations, ALMM compliance requirements, and the higher project development costs associated with Uttarakhand’s hilly terrain justified maintaining the existing tariff structure.

In addition to preserving solar tariffs, UERC has introduced a revised framework for Battery Energy Storage Systems (BESS), a key technology for supporting grid stability and renewable energy integration. The Commission finalized BESS capacity charges at ₹2,59,244 per MW per month, representing a significant reduction of approximately 35% compared to the earlier benchmark equivalent charges. The move is expected to improve the economic viability of energy storage projects while encouraging greater deployment of storage capacity alongside solar installations.

The order also provides clarity across different solar project categories. Canal Bank Solar PV projects will receive the same tariff of ₹4.10 per kWh, while Canal Top Solar PV projects have been assigned a tariff of ₹4.20 per kWh. Rooftop and small solar projects operating under net-metering arrangements will continue to receive ₹2.00 per kWh. UERC further clarified that incentives provided under Uttarakhand’s MSME policies will not be deducted from solar tariffs unless they are directly linked to renewable energy project development, providing additional certainty for developers and investors.

The latest tariff order demonstrates Uttarakhand’s commitment to balancing renewable energy growth with consumer interests. By maintaining stable solar tariffs and making energy storage more affordable, the state is creating a more predictable investment environment for solar and hybrid renewable projects. As India accelerates the deployment of renewable energy and battery storage infrastructure, such regulatory measures are expected to play a crucial role in supporting grid modernization and long-term clean energy adoption across the country.

Resource: Saur Energy

Click Here for more updates.

*Ornate Solar is now on WhatsApp! Follow us by clicking on this link, and stay updated about the latest solar developments and insights from the industry.