E-Paper
Punjab: PSERC approves PSPCL’s ₹123 crore rooftop solar plan
The rooftop solar installation project involves setting up 31.37 MW of grid-connected rooftop solar systems across 1,013 PSPCL buildings across Punjab
The Punjab State Electricity Regulatory Commission (PSERC) has approved a rooftop solar installation plan proposed by the Punjab State Power Corporation Limited (PSPCL), with an estimated capital expenditure of ₹123.3 crore. The project involves setting up 31.37 MW of grid-connected rooftop solar systems across 1,013 PSPCL buildings across Punjab.
The installations will cover administrative offices, substations, thermal and hydro stations. The implementation will follow the capital expenditure (CAPEX) model, where PSPCL owns and maintains the systems. The work has been divided into seven packages, with contracts already awarded in August 2024. Following this, the PSPCL has approached the PSERC for approval.
PSPCL had initially sought approval for ₹160 crore, which included ₹32.64 crore in administrative charges. PSERC disallowed the administrative cost, stating it overlapped with PSPCL’s regular business operations and would result in duplicate recovery from consumers. Only the actual capital cost of ₹123.3 crore has been approved.
“The solar systems are projected to generate 46.74 million units of solar electricity annually. During the loan repayment period of 15 years, the cost of generation will be ₹3.26 per unit. After that, electricity will be free for the remaining 10 years of the 25-year lifecycle,” a PSPCL official said, pleading anonymity.
PSPCL aims to complete the project within one year from the date of work order issuance.
PSERC clarified that if the project is delayed or underperforms, PSPCL will not be allowed to recover the costs through tariffs. “Separate energy meters must be installed to track solar generation, and PSPCL must include the data in its annual regulatory filings,” the regulatory authority further added.
This plan is part of the Union ministry of new and renewable energy’s target to install rooftop solar systems on all government buildings by December 2025.
PSPCL aims to use the power generated to meet internal consumption, reduce grid dependence, and meet renewable purchase obligations.
“The PSPCL has offices across Punjab, besides some open land. This will now be used to generate green energy. Not only will it increase the green power in Punjab, but the solar power remains beneficial as its costs are lower as compared to other sources of green energy”, a PSPCL engineer said.
