The Uttarakhand solar tariff draft for the financial year 2026–27 has been released by the State Electricity Regulatory Commission, highlighting a rise in solar project costs due to the weakening rupee against the US dollar. The Commission has invited suggestions from stakeholders on the draft until May 4.
According to the Uttarakhand solar tariff draft, the capital cost for solar photovoltaic (PV) projects starting on or after April 1, 2026, has been fixed at ₹285.32 lakh per megawatt. This is higher than last year’s ₹278.40 lakh per megawatt. Officials attributed the increase to rising solar module prices and the exchange rate reaching ₹92.28 per dollar.
Despite reductions in GST from 12 percent to 5 percent and import duty from 40 percent to 20 percent, setting up solar projects in the state is expected to become more expensive. However, the Commission has proposed a reduction in electricity tariffs for different solar categories.
The Uttarakhand solar tariff draft proposes that solar PV tariff will decrease from ₹4.10 to ₹3.96 per unit. Canal bank projects will see rates reduced from ₹4.31 to ₹4.09 per unit, while canal top projects will drop from ₹4.48 to ₹4.26 per unit. Rooftop solar under net metering will remain unchanged at ₹2.00 per unit.
The draft also includes revised rates for Battery Energy Storage Systems (BESS) to improve grid stability and renewable energy usage. The tariff for electricity supplied to UPCL from BESS has been reduced from ₹3,96,000 to ₹2,54,583 per megawatt per month. The cost for BESS projects has been set at ₹160 lakh per megawatt.
The Uttarakhand solar tariff draft further states that projects receiving financial subsidies from the central or state government will face additional tariff reductions. For example, if a project receives a 26 percent subsidy, its tariff may drop from ₹3.96 to ₹3.57 per unit.
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The Commission stated that these revisions aim to balance rising project costs with affordable tariffs, while encouraging renewable energy development in the state.
