The Uttarakhand Electricity Regulatory Commission (UERC) has finalized renewable energy tariffs for the financial year 2026-27, retaining the generic tariff for ground-mounted solar photovoltaic (PV) projects at ₹4.10 per unit. The decision provides greater certainty for solar developers after the Commission decided not to proceed with an earlier proposal to reduce the tariff.

Alongside the solar tariff announcement, UERC has also revised Battery Energy Storage System (BESS) capacity charges, making energy storage projects more economically attractive and supporting the state’s renewable energy expansion.

UERC Retains Solar Tariff at ₹4.10 Per Unit

After reviewing feedback from 36 stakeholders, UERC decided to maintain the existing tariff of ₹4.10/kWh for ground-mounted solar PV projects.

The Commission cited several reasons for retaining the tariff, including:

• Volatility in solar module prices
• Exchange rate fluctuations
• ALMM compliance requirements
• Higher project development costs in Uttarakhand’s hilly regions

The decision is expected to provide confidence to developers planning new solar investments across the state.

Revised Battery Energy Storage Charges

UERC also announced revised capacity charges for Battery Energy Storage Systems (BESS).

The Commission finalized BESS capacity charges at:

₹2,59,244 per MW per month

This represents a reduction of nearly 35% compared to earlier benchmark equivalent charges.

Lower storage costs are expected to encourage greater deployment of battery storage alongside renewable energy projects, improving grid stability and energy reliability.

Tariffs for Different Solar Project Categories

The latest tariff order also clarifies pricing across various solar project categories.

Ground-Mounted Solar PV

• ₹4.10 per kWh

Canal Bank Solar Projects

• ₹4.10 per kWh

Canal Top Solar Projects

• ₹4.20 per kWh

Rooftop Solar Under Net Metering

• ₹2.00 per kWh

The revised framework provides greater transparency for developers, investors, and distribution companies.

Support for Renewable Energy Investment

The Commission also clarified that incentives available under Uttarakhand’s MSME policies will not reduce renewable energy tariffs unless those incentives are directly linked to solar project development.

This clarification provides additional policy certainty and improves investor confidence in the state’s renewable energy sector.

Boost for Solar and Energy Storage

Industry experts believe the latest tariff order strikes a balance between renewable energy development and consumer affordability.

Lower battery storage costs combined with stable solar tariffs are expected to:

• Encourage hybrid renewable projects
• Improve grid flexibility
• Accelerate renewable energy integration
• Strengthen long-term energy security

Battery Energy Storage Systems will play an increasingly important role as India expands solar and wind power generation.

Uttarakhand’s decision to retain the solar tariff at ₹4.10 per unit while reducing BESS capacity charges demonstrates the state’s commitment to promoting renewable energy investment.

The revised tariff framework offers greater certainty for developers, supports energy storage deployment, and strengthens the foundation for future solar and hybrid renewable energy projects across the state.