Mumbai, June 29 -- The Karnataka Electricity Regulatory Commission (KERC) has proposed a reduction in the tariff paid for surplus electricity that rooftop solar installations export to the grid, prompting concern among consumers, renewable energy advocates and industry specialists. The proposal arrives while the Central government and state governments are promoting clean energy adoption and offering subsidy schemes to encourage rooftop solar deployment. Thousands of households in Karnataka, particularly in Bengaluru, have invested substantial sums in rooftop systems to reduce reliance on conventional power and support state renewable targets.
Stakeholders have raised questions about the implications of a lower export tariff for the financial attractiveness of rooftop solar investments and the pace of the state transition to renewables. Industry analysts warned that a reduction in compensation for excess generation could discourage new installations and extend payback periods for existing systems. Current messaging from authorities, which simultaneously promotes adoption while proposing lower export rates, has been described by user groups as creating contradictory signals for consumers.
Experts argued that policy measures should focus on grid modernisation rather than reducing consumer benefits, with investments in transmission and distribution networks needed to manage higher volumes of distributed solar generation. Consumer groups and renewable advocates are preparing written submissions to the regulator and are urging retention of incentives that support household adoption of rooftop systems. KERC has invited public objections and suggestions as part of a consultation process that will determine the final tariff framework.
The outcome of the consultation is expected to influence the future growth of rooftop solar across the state and shape investor confidence in small-scale renewable projects. Residents who have already installed rooftop panels are monitoring developments closely because changes to compensation mechanisms may affect household finances and the speed of return on investment. Observers noted that coherent policy, aligned incentives and grid upgrades would be essential to sustain momentum in the rooftop solar sector.
Published by HT Digital Content Services with permission from Construction World.