The Telengana State Electricity Regulatory Commission (TSERC) has suggested norms for a pre-fixed levelized tariff for Rs 3.13 per kWh for solar projects under Component-A of the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) program. The projects may be set up by entities within a five-kilometre radius of the closest substations. The tariff is calculated for solar projects with capacities between 500 kW and 2 MW and is based on assumptions on parameters such as useful life, capital cost per MW, salvage value, depreciation, rate of interest among other parameters. The TSERC has called for suggestions and comments from stakeholders as well as the public. The deadline for submissions is November 11, 2020.
The central government released the guidelines for the PM-KUSUM programme in July 2020 with three components. Under Component A, the country is to set up decentralized ground-mounted grid-connected solar projects of individual project size of up to 2 MW aggregating to a total capacity 10 GW. In September 2020, the Rajasthan Electricity Regulatory Commission set the pre-fixed levelized tariff at Rs 3.14 per kWh under Component-A of the PM-KUSUM for a cumulative capacity of 725 MW.