Karnataka Open Access Solar Charges FY 2026-27: Wheeling, CSS
Open Access

Karnataka Open Access Solar Charges FY 2026-27: Wheeling, CSS

Sun Wave Technologies7 August 202621 min read

Direct Answer: Karnataka Open Access Solar Charges FY 2026-27

For FY 2026-27, the total landed cost of open access solar in Karnataka ranges from approximately ₹4.20 to ₹5.00 per unit for captive consumers and approximately ₹5.50 to ₹6.80 per unit for third-party open access consumers. The key charges include wheeling charges of approximately ₹0.29 to ₹1.00 per unit (among the lowest in India), cross-subsidy surcharge (CSS) of ₹0.40 to ₹1.20 per unit, additional surcharge of ₹0.40 per unit (reduced from ₹0.82 per unit in February 2026), and an 8 percent banking charge in kind under the KERC Open Access Regulations 2025.

The bottom line is that Karnataka has one of India's most competitive open access solar markets due to its relatively low wheeling charges and moderate CSS. The state's active ESCOM ecosystem (BESCOM, MESCOM, GESCOM, HESCOM, CESC) and the KERC Multi-Year Tariff framework for FY 2025-26 to FY 2027-28 provide tariff predictability that most other states lack.

Key Takeaways

  • Karnataka has among the lowest wheeling charges in India: Approximately ₹0.29 per unit at the most competitive end, making it a leading open access market
  • CSS ranges from ₹0.40 to ₹1.20 per unit: Lower than Tamil Nadu (₹1.00 to ₹1.50) and Maharashtra (₹1.50 to ₹2.50), but still significant for third-party OA
  • Additional surcharge halved in February 2026: KERC approved BESCOM's request to reduce the additional surcharge from ₹0.82 per unit to ₹0.40 per unit
  • 8 percent monthly banking: Renewable energy banking permitted monthly until March 31, 2030, with an 8 percent in-kind charge
  • Multi-Year Tariff (MYT) provides predictability: KERC's MYT order covers FY 2025-26, FY 2026-27, and FY 2027-28, giving consumers a three-year tariff visibility
  • Open access threshold is 100 kW: Among the lowest in India, enabling mid-market C and I consumers to participate
  • Karnataka High Court upheld CSS: In June 2026, the Karnataka HC upheld Regulation 12(c) of the KERC OA Regulations 2025, confirming the legal basis for CSS on open access consumers

Karnataka Open Access Solar Charges: Voltage-Wise Breakdown

The table below presents the voltage-wise open access solar charge framework for Karnataka in FY 2026-27, based on the KERC Terms and Conditions for Open Access Regulations 2025, the KERC Multi-Year Tariff Order for FY 2025-26 to FY 2027-28, and subsequent KERC orders. Specific per-unit wheeling rates are determined through periodic tariff orders under the MYT framework; the ranges below are compiled from secondary sources and should be verified with KERC or the relevant ESCOM directly.

Charge ComponentLT (below 33 kV)HT (33 kV and above)EHT (110 kV and above)Applicability
Wheeling Charges₹0.70 to ₹1.00 per unit₹0.40 to ₹0.70 per unit₹0.29 to ₹0.50 per unitAll OA consumers (per MYT tariff order)
Transmission Charges (KPTCL)Not applicable (distribution only)₹0.25 to ₹0.45 per unit₹0.25 to ₹0.45 per unitWhen using STU transmission network
Cross-Subsidy Surcharge (CSS)₹0.80 to ₹1.20 per unit₹0.60 to ₹1.00 per unit₹0.40 to ₹0.90 per unitThird-party OA only (captive exempt)
Additional Surcharge₹0.40 per unit₹0.40 per unit₹0.40 per unitApproved by KERC February 2026 (reduced from ₹0.82)
Banking Charges8 percent in kind8 percent in kind8 percent in kindMonthly banking for RE until March 2030
SLDC Scheduling Charges₹0.02 to ₹0.05 per unit₹0.02 to ₹0.05 per unit₹0.02 to ₹0.05 per unitAll OA transactions
Standby Charges125 percent of normal energy rate125 percent of normal energy rate125 percent of normal energy rateDuring generator outages
Transmission and Wheeling LossesAs determined by KERC (in kind)As determined by KERC (in kind)As determined by KERC (in kind)Energy deducted from delivered units

Landed Cost Calculation: Captive vs Third-Party

To summarize, the total landed cost of open access solar in Karnataka depends on whether you use a captive structure or a third-party PPA. The following calculation uses a reference PPA tariff of ₹3.50 per unit and monthly consumption of 40,000 units, based on indicative charge ranges from the KERC MYT framework.

Captive Structure Landed Cost

ComponentRateMonthly Cost (40,000 units)
Solar generation cost₹3.00 per unit₹1,20,000
Wheeling charges (HT)₹0.55 per unit₹22,000
Transmission charges (KPTCL)₹0.35 per unit₹14,000
SLDC scheduling₹0.03 per unit₹1,200
CSSExempt₹0
Additional surchargeExempt₹0
Losses (8 percent)3,200 units equivalent₹9,600
Total delivered cost₹4.18 per unit₹1,66,800

Third-Party PPA Landed Cost

ComponentRateMonthly Cost (40,000 units)
PPA tariff₹3.50 per unit₹1,40,000
Wheeling charges (HT)₹0.55 per unit₹22,000
Transmission charges (KPTCL)₹0.35 per unit₹14,000
SLDC scheduling₹0.03 per unit₹1,200
CSS₹0.80 per unit₹32,000
Additional surcharge₹0.40 per unit₹16,000
Losses (8 percent)3,200 units equivalent₹11,200
Total delivered cost₹5.91 per unit₹2,36,400

In short, the captive model delivers a landed cost of approximately ₹4.18 per unit versus ₹5.91 per unit for third-party OA — a difference of ₹1.73 per unit or roughly ₹69,200 per month for a 40,000-unit consumer. This means captive structures remain the preferred economic choice in Karnataka, though the gap is narrower than in high-CSS states like Maharashtra or Tamil Nadu, making third-party OA more viable here than in many other states.

Voltage-Wise Example: Impact on Landed Cost

The voltage level at which you connect significantly affects both wheeling charges and transmission charges in Karnataka. Here is a comparison across three connection scenarios.

ParameterLT (below 33 kV)HT (33 kV)EHT (110 kV and above)
PPA / Generation tariff₹3.50 per unit₹3.50 per unit₹3.50 per unit
Wheeling charge₹0.85 per unit₹0.55 per unit₹0.35 per unit
Transmission charge (KPTCL)₹0 (distribution only)₹0.35 per unit₹0.35 per unit
SLDC charge₹0.03 per unit₹0.03 per unit₹0.03 per unit
CSS (captive exempt)₹0₹0₹0
Additional surcharge (captive exempt)₹0₹0₹0
Losses (in kind)7 percent6 percent4 percent
Landed cost (captive)₹4.56 per unit₹4.46 per unit₹4.23 per unit

This means connecting at EHT voltage yields the lowest landed cost due to lower wheeling charges and reduced losses. The bottom line is that voltage selection can save ₹0.30 to ₹0.50 per unit in Karnataka, similar to the savings seen in other states. For larger consumers with access to EHT connectivity, this is a meaningful advantage.

For a comprehensive comparison of open access charges across Indian states, see our solar open access state comparison guide.

Captive and Group Captive Treatment

Captive generating plants in Karnataka enjoy automatic open access rights under Section 9 of the Electricity Act 2003 and are exempt from both CSS and additional surcharge. The KERC Open Access Regulations 2025 explicitly state that the minimum load condition of 100 kW "will not apply to captive consumers," making captive structures even more accessible.

For consumers with demand in the 100 kW to 1 MW range, group captive solar arrangements are particularly attractive in Karnataka. The state's low open access threshold (100 kW, among the lowest in India) combined with the CSS exemption makes group captive the optimal structure for mid-market C and I consumers.

To qualify as captive under the Electricity Act 2003:

  • The consumer must hold at least 26 percent equity in the generating plant
  • The consumer must consume at least 51 percent of the energy generated for captive use

This means a group of manufacturing units in Bengaluru, for example, can jointly invest in a solar plant in North Karnataka (where land and solar irradiation are favorable) and wheel the power to their facilities while avoiding CSS and additional surcharge entirely. The savings of ₹1.20 to ₹1.60 per unit compared to third-party OA often justify the equity investment.

Banking Charges Under KERC Open Access Regulations 2025

The KERC Terms and Conditions for Open Access Regulations 2025, issued in April 2025, established a new banking framework for renewable energy in Karnataka.

Key Banking Provisions

  • 8 percent in-kind banking charge: Applies to all renewable energy banked under open access (solar, wind, mini-hydel, hybrid)
  • Monthly banking settlement: Excess energy must be utilized within the same month; no carry-forward is permitted
  • Unutilized energy lapses: Any banked energy not withdrawn by month-end lapses, though generators may claim Renewable Energy Certificates (RECs) for the lapsed energy
  • Banking permitted until March 31, 2030: The banking facility is available for five years from the effective date of implementation
  • Interim banking at 4 percent: As per the Karnataka High Court's directive, interim banking charges were set at 4 percent until the 2025 regulations were fully operationalized

This means Karnataka's banking regime is more structured than under the previous (struck-down) GEOA framework, but the monthly settlement requirement demands accurate load forecasting and scheduling. For commercial and industrial solar consumers with predictable daytime consumption profiles, the banking impact is manageable. For consumers with highly variable loads, the 8 percent charge and monthly settlement can add ₹0.05 to ₹0.10 per unit to the effective landed cost.

The Additional Surcharge Story: From ₹0.82 to ₹0.40

The additional surcharge in Karnataka has seen significant regulatory activity in FY 2025-26 and FY 2026-27.

PeriodAdditional Surcharge RateKey Event
Prior to February 2026₹0.82 per unitApproved by KERC for BESCOM
October 2025BESCOM sought ₹1.65 per unitPetition to KERC for FY 2025-26
February 18, 2026₹0.40 per unitKERC approved BESCOM's plea, halving the surcharge
FY 2026-27₹0.40 per unit (current)Applicable unless revised by KERC

The bottom line is that KERC reduced the additional surcharge by approximately 51 percent, from ₹0.82 to ₹0.40 per unit, providing significant relief to open access consumers. BESCOM had initially sought ₹1.65 per unit based on an estimated ₹1,028.29 crore in stranded power costs, but KERC approved a lower rate to balance DISCOM revenue recovery with consumer interests.

For captive consumers, the additional surcharge is exempt, so this change primarily benefits third-party OA consumers.

KERC Multi-Year Tariff Framework: FY 2025-26 to FY 2027-28

Karnataka's tariff framework benefits from a Multi-Year Tariff (MYT) mechanism that provides three-year predictability. The KERC MYT order, announced on March 27, 2025, covers FY 2025-26, FY 2026-27, and FY 2027-28.

Key HT Tariff Rates Under the MYT Order

Consumer CategoryFY 2025-26 Energy ChargeFY 2026-27 Energy ChargeFY 2027-28 Energy Charge
HT-2a (Industrial)₹6.70 per unit₹6.60 per unit₹6.50 per unit
HT-2b (Commercial)₹6.90 per unit₹5.75 per unit₹5.40 per unit
HT-2a (Industrial) — original order₹6.60 per unit₹6.60 per unit₹6.50 per unit
HT-2b (Commercial) — original order₹5.95 per unit₹5.75 per unit₹5.40 per unit

Note: The original MYT order (March 27, 2025) reduced HT-2b commercial energy charges from ₹8.00 to ₹5.95 per unit — a reduction of 205 paise per unit. A subsequent review petition by ESCOMs (March 2026) revised some rates upward by 10 to 95 paise per unit for select industrial and commercial categories. Verify the exact applicable rate with KERC or your ESCOM.

This means the DISCOM retail tariff for HT industrial consumers is approximately ₹6.50 to ₹6.70 per unit in FY 2026-27. Open access solar at a landed cost of ₹4.18 per unit (captive) or ₹5.91 per unit (third-party) offers savings of ₹0.60 to ₹2.50 per unit against the DISCOM tariff — a 9 to 37 percent reduction.

Commonly Missed Costs

Many open access solar cost models in Karnataka overlook several charges that can add ₹0.15 to ₹0.35 per unit to the landed cost.

  1. Scheduling and System Operating Charges: Separate from SLDC charges, these cover system operation costs and are determined by KERC
  2. Deviation Settlement Mechanism (DSM) charges: Penalties for deviations from scheduled energy injection or drawal; the Karnataka High Court stayed certain CERC DSM 2024 provisions in May 2026, but deviation charges still apply under the state framework
  3. Reactive power charges: Applicable for poor power factor; can add ₹0.03 to ₹0.10 per unit
  4. Meter reading charges: Monthly charges for special energy meter reading and data communication
  5. Connectivity bank guarantees: ₹10,000 per MW for long-term and medium-term OA applications
  6. Application fees: ₹5,000 for long-term/medium-term OA; ₹1,000 for short-term OA
  7. Curtailment risk: While not a direct charge, renewable energy curtailment during grid congestion reduces effective energy delivered, impacting per-unit economics

In short, these commonly missed costs are smaller in Karnataka than in some other states due to the structured MYT framework, but they still need to be included in any financial model.

Verification Steps for Your Project

Before committing to an open access solar project in Karnataka, follow these verification steps.

  1. Check the latest KERC tariff order: Visit kerc.karnataka.gov.in for the MYT order and any subsequent review orders
  2. Confirm your ESCOM jurisdiction: BESCOM (Bengaluru region), MESCOM (coastal Karnataka), GESCOM (Gulbarga region), HESCOM (Hubli region), or CESC (Chamundeswari/Mysore region)
  3. Verify CSS for your consumer category: CSS is determined by KERC tariff order using the National Tariff Policy methodology; confirm the applicable rate for your specific HT or LT category
  4. Validate the additional surcharge: Currently ₹0.40 per unit (February 2026 order); check for any subsequent KERC orders
  5. Confirm banking eligibility: Verify whether your transaction type qualifies for the 8 percent monthly banking facility
  6. Check transmission charges (TTSC): For medium-term and long-term OA, transmission charges are calculated as Total Transmission System Charges divided by contracted capacity; confirm the current TTSC with KPTCL
  7. Assess curtailment priority: Under the 2025 regulations, renewable short-term OA consumers are curtailed before distribution licensees but after non-renewable short-term OA; understand your curtailment risk

Stress-Testing Your Open Access Economics

To summarize, stress-testing your open access solar project in Karnataka requires modeling multiple scenarios.

ScenarioPPA TariffWheelingCSSAdditional SurchargeBanking ImpactLanded Cost
Best case (captive, EHT, low losses)₹3.00₹0.35₹0₹0Minimal₹3.73 per unit
Base case (captive, HT, moderate charges)₹3.50₹0.55₹0₹0₹0.05₹4.46 per unit
Worst case (third-party, LT, high CSS)₹4.00₹0.85₹1.20₹0.40₹0.08₹6.93 per unit

This means the spread between best and worst case is approximately ₹3.20 per unit — an 86 percent difference. For a consumer using 1 lakh units per month, that is a swing of ₹3.20 lakh per month or ₹38.4 lakh per year. The most impactful decisions are: choosing captive over third-party (saves ₹1.60 per unit), connecting at EHT voltage (saves ₹0.50 per unit), and negotiating a competitive PPA tariff (saves ₹1.00 per unit).

For a detailed solar IRR calculation methodology, factor in these scenario ranges to model your project's risk-adjusted returns.

Frequently Asked Questions

What is the minimum load requirement for open access solar in Karnataka?

Under the KERC Open Access Regulations 2025, the minimum load requirement is 100 kW of sanctioned load or contract demand for HT consumers, or an aggregated load of 100 kW or more within the same division for LT consumers. Captive consumers are exempt from this minimum load condition. This is among the lowest thresholds in India, enabling mid-market C and I consumers to participate. For a broader understanding of open access rules, see our open access solar India guide.

How much is the cross-subsidy surcharge (CSS) in Karnataka for FY 2026-27?

The CSS for third-party open access consumers in Karnataka is approximately ₹0.40 to ₹1.20 per unit, depending on consumer category and voltage level. The Karnataka High Court upheld the CSS mechanism in June 2026 (Soham Infrastructure v. KERC, WP No. 15316 of 2025), confirming that Regulation 12(c) of the KERC OA Regulations 2025 is intra vires the Electricity Act 2003 and the National Tariff Policy. Captive and group captive consumers are exempt from CSS. Verify the exact current rate with KERC or your ESCOM.

What is the additional surcharge for open access in Karnataka?

The additional surcharge is currently ₹0.40 per unit, approved by KERC on February 18, 2026. This represents a 51 percent reduction from the previous rate of ₹0.82 per unit. BESCOM had initially sought ₹1.65 per unit for FY 2025-26 based on approximately ₹1,028.29 crore in stranded power costs, but KERC approved the lower ₹0.40 per unit rate. The additional surcharge applies to third-party OA consumers; captive consumers are exempt.

What are the wheeling charges for solar open access in Karnataka?

Karnataka has among the lowest wheeling charges in India, approximately ₹0.29 per unit at the most competitive end. Indicative ranges are ₹0.70 to ₹1.00 per unit for LT connections, ₹0.40 to ₹0.70 per unit for HT connections, and ₹0.29 to ₹0.50 per unit for EHT connections. Wheeling charges are determined through periodic tariff orders under the KERC Multi-Year Tariff (MYT) framework. Verify exact rates with KERC or your ESCOM.

How does banking work for open access solar in Karnataka?

Under the KERC Open Access Regulations 2025, renewable energy banking is permitted on a monthly basis with an 8 percent in-kind banking charge. Banked energy must be utilized within the same month; unutilized energy lapses (though RECs can be claimed). The banking facility is available until March 31, 2030. For interim periods, the Karnataka High Court directed banking charges at 4 percent until the 2025 regulations were fully operationalized. This monthly settlement requirement demands accurate load forecasting.

Is Karnataka a good state for open access solar?

Yes. Karnataka is consistently ranked among India's top open access solar markets. Key advantages include: low wheeling charges (₹0.29 per unit at the lowest end), moderate CSS (₹0.40 to ₹1.20 per unit), a low 100 kW open access threshold, a Multi-Year Tariff framework providing three-year predictability, over 8,000 MW of installed solar capacity (as of 2025), and a strong C and I demand base in Bengaluru. The state ranked 8 out of 10 on the Open Access attractiveness score in comparative analysis. See our state comparison guide for details.

What is the regulatory framework governing open access solar in Karnataka?

Open access solar in Karnataka is governed by the KERC (Terms and Conditions for Open Access) Regulations, 2025, issued in April 2025. These regulations replaced the 2022 Green Energy Open Access rules, which were struck down by the Karnataka High Court in January 2025 for exceeding the Centre's authority under the Electricity Act 2003. The 2025 regulations define eight charges applicable to OA consumers: transmission charges, wheeling charges, CSS, additional surcharge, banking charges, standby charges, losses in kind, and other fees. KERC has also released draft Connectivity and General Network Access Regulations 2026 (published in the Karnataka Gazette on June 11, 2026) that will further refine the framework.

How do Karnataka's open access charges compare to Tamil Nadu and Maharashtra?

Karnataka's open access charges are lower than both Tamil Nadu and Maharashtra. The effective OA charge for captive consumers is approximately ₹1.6 to ₹2.5 per unit in Karnataka, compared to ₹1.4 to ₹2.0 in Tamil Nadu (though Tamil Nadu's CSS is higher) and ₹2.5 to ₹3.5 in Maharashtra. Karnataka's wheeling charges (₹0.29 per unit at the lowest) are the lowest in India, while Maharashtra's CSS (₹1.50 to ₹2.50 per unit) is among the highest. This means Karnataka offers the best third-party OA economics among these three states. Use our solar panel ROI and payback period guide to model state-specific returns.

How to Get Started with Open Access Solar in Karnataka

  1. Assess your eligibility: Confirm your sanctioned load or contract demand meets the 100 kW threshold
  2. Choose your structure: Evaluate captive vs group captive vs third-party — use our solar IRR calculation methodology to model returns
  3. Identify your ESCOM: BESCOM (Bengaluru), MESCOM (coastal), GESCOM (Gulbarga), HESCOM (Hubli), or CESC (Mysore)
  4. Identify a solar generator: Find existing plants with available OA capacity in North Karnataka (Gadag, Koppal, Bellary) or develop a new project with an experienced solar EPC company
  5. Submit OA application: Apply through the State Nodal Agency portal; approval timeline is 15 working days (deemed approved if no response)
  6. Register with Karnataka SLDC: Obtain scheduling ID via KPTCL and install special energy meter
  7. Model the complete cost: Include all eight charges, losses, banking impact, and commonly missed costs
  8. Monitor KERC orders: Charges may be revised through review petitions and supplementary orders

For consumers evaluating whether open access or net metering is the better fit, the key decision factor is total demand. Consumers under 100 kW should consider rooftop net metering, while those above 100 kW should evaluate open access or group captive structures. A qualified solar provider in India can help you navigate this decision.

For consumers who prefer a zero-investment model, the RESCO or OPEX solar model shifts the capital investment to the developer while still enabling open access procurement.

Sources

  1. Mercom India — Karnataka Halves Additional Surcharge for Open Access Power (February 18, 2026): https://cms.mercomindia.com/karnataka-halves-additional-surcharge-for-open-access-power/
  2. KERC Open Access Regulations 2025 — Renewable Watch (April 25, 2025): https://renewablewatch.in/2025/04/25/karnataka-announces-open-access-regulations-2025/
  3. Mercom India — Karnataka Issues Open Access Regulations 2025: https://www.mercomindia.com/karnataka-open-access-regulations-2025
  4. The Hindu — KERC announces major power tariff cuts (March 27, 2025): https://www.thehindu.com/news/national/karnataka/karnataka-electricity-tariff-energy-charges-come-down-by-10-paise-for-domestic-consumers-fixed-charges-go-up/article69381490.ece
  5. The Hindu — Industries warn of higher costs as BESCOM seeks Rs 1.65 per unit surcharge: https://www.thehindu.com/news/national/karnataka/industries-warn-of-higher-costs-as-bescom-seeks-165-per-unit-surcharge/article70217423.ece
  6. The Hindu — KERC hikes commercial, industrial power tariffs (March 3, 2026): https://www.thehindu.com/news/cities/bangalore/kerc-hikes-commercial-industrial-power-tariffs-agri-pump-set-rate-cut/article70700546.ece
  7. LiveLaw — Karnataka High Court Upholds Regulations Allowing Cross-Subsidy Surcharge (June 26, 2026): https://www.livelawbiz.com/others-taxes/karnataka-electricity-regulatory-commission-electricity-act-cross-subsidy-surcharge-on-open-access-electricity-consumers-539078
  8. Mercom India — KERC Proposes Reducing Cross-Subsidy and Cross-Subsidy Surcharge from FY 2029: https://mercomindia.com/kerc-proposes-reducing-cross-subsidy-and-cross-subsidy-surcharge-from-fy-2029
  9. Mercom India — Karnataka Notifies Power Cross-Subsidy Reduction Regulations 2026: https://cms.mercomindia.com/karnataka-notifies-cross-subsidy-reduction-regulations-2026/
  10. SolarQuarter — KERC Unveils Draft 2026 Regulations for Open Access (June 12, 2026): https://solarquarter.com/2026/06/12/kerc-unveils-draft-2026-regulations-for-open-access-and-general-network-access-in-karnataka/
  11. SolarQuarter — KERC Extends Discounted Energy Rate Scheme Till FY28 (April 2, 2026): https://solarquarter.com/2026/04/02/kerc-extends-discounted-energy-rate-scheme-till-fy28-eases-open-access-rules-for-consumers-in-karnataka/
  12. Open Access Exchange — Karnataka Open Access Regulatory Policy: https://www.openaccessexchange.com/policies/karnataka-open-access-regulatory-policy/
  13. Wattency — Guide to Open Access Solar in Karnataka 2026: https://wattency.com/guides/open-access-solar-karnataka-2026
  14. Saur Energy — Consumers in Karnataka to Pay 8 Charges for Open Access: KERC: https://www.saurenergy.com/solar-energy-news/consumers-in-karnataka-to-pay-8-charges-for-open-access-kerc
  15. Business Standard — Karnataka HC strikes down central rules on green energy open access: https://www.business-standard.com/india-news/karnataka-hc-strikes-down-central-rules-on-green-energy-open-access-125010800945_1.html

Regulatory status last checked: August 7, 2026. Charges are subject to periodic revision by KERC. The KERC Multi-Year Tariff framework covers FY 2025-26 to FY 2027-28, but supplementary orders (such as the additional surcharge reduction in February 2026) can modify charges mid-period. Verify all figures with KERC (kerc.karnataka.gov.in) or your relevant ESCOM directly before financial modeling or project commitment.

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