PSERC approves Rs 123.3 crore rooftop solar plan for its buildings

The Punjab State Electricity Regulatory Commission (PSERC) has approved a rooftop solar installation project proposed by the Punjab State Power Corporation Limited (PSPCL), clearing a capital expenditure of Rs 123.3 crore. The project will add 31.37 MW of grid-connected rooftop solar capacity across 1,013 PSPCL-owned buildings in the state.

The approved installations will cover administrative offices, substations, thermal plants, and hydro stations. PSPCL will implement the systems under a capital expenditure (CAPEX) model, retaining ownership and responsibility for maintenance.

Contracts for the project were awarded in August 2024, divided across seven implementation packages. Following this, PSPCL sought PSERC’s approval for a total outlay of Rs 160 crore, which included Rs 32.64 crore in administrative charges. The commission disallowed the administrative cost, ruling that it overlapped with PSPCL’s regular operations and would have led to duplicate cost recovery from consumers.

According to PSPCL estimates, the rooftop systems are expected to generate 46.74 million units of solar electricity annually. During the 15-year loan repayment period, the generation cost will be Rs 3.26 per unit. Electricity produced during the remaining 10 years of the 25-year project life will be cost-free.

The power utility aims to complete the installation within a year from the date of work order issuance. The generated electricity will be used for PSPCL’s own operations, helping reduce grid dependency and meet renewable purchase obligations.

The commission has directed PSPCL to install separate energy meters for each system and include solar generation data in its annual filings. It also clarified that PSPCL will not be allowed to recover project costs through tariffs if the systems underperform or face delays.

Source: Hindustan Times