Uttar Pradesh is set to buy solar power at rates as low as Rs 2.91 per unit under the Centre’s PM-KUSUM scheme. The Uttar Pradesh Electricity Regulatory Commission (UPERC) has approved tariffs for 10 power purchase agreements (PPAs) with a total solar capacity of 19.7 MW.
The order, issued on October 13, 2026, covers solar projects that will supply power to Uttar Pradesh Power Corporation Ltd (UPPCL). The plants will connect to selected agricultural feeders and distribution substations. This will help bring solar power closer to the farms that need it.
Tariffs range from Rs 2.91 to Rs 2.99 per unit
Bhaskar Renewable Energy Pvt Ltd received the lowest approved tariff of Rs 2.91 per kWh for its 1.7 MW project in Chitrakoot. M/s APS Developers secured a tariff of Rs 2.93 per kWh for a 2.3 MW project in Mathura.
Shakti Renew Private Ltd received a tariff of Rs 2.95 per kWh for its 1.3 MW project in Kanpur Nagar. The remaining seven projects received an approved tariff of Rs 2.99 per kWh.
| Developer | Location | Capacity | Tariff |
|---|---|---|---|
| Bhaskar Renewable Energy | Chitrakoot | 1.7 MW | Rs 2.91/kWh |
| M/s APS Developers | Mathura | 2.3 MW | Rs 2.93/kWh |
| Shakti Renew | Kanpur Nagar | 1.3 MW | Rs 2.95/kWh |
| Other approved projects | Several districts | 14.4 MW | Rs 2.99/kWh |
What PM-KUSUM Component C-2 means
PM-KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. Component C-2 focuses on the solarisation of agricultural feeders.
Under this model, grid-connected solar plants generate power for feeders that serve farms. The approach can reduce the need to draw all farm power from distant generating stations. It can also support cleaner electricity supply for irrigation and other agricultural needs.
Think of an agricultural feeder as a power lane for farms. Adding a solar plant near that lane can make the power supply more local. It is not magic, but it is a useful bit of planning.
Large tender attracted 153 bidders
The 19.7 MW approved in the latest order is part of a much larger procurement plan. The original tender covered 3,205 MW of grid-connected solar capacity under PM-KUSUM Component C-2.
The tender capacity was later reduced to 2,553.5 MW after changes in the capacity of selected substations and feeders. UPNEDA invited bids in July 2024. The bidding process took place through the ISN-ETS portal in January 2025.
- 153 bidders took part in the tender.
- Bids were received for 494 substations.
- The bids covered 1,529.1 MW of capacity.
- Letters of Award were issued for 566 substations.
- The awarded capacity reached 1,686.4 MW.
UPNEDA and UPPCL used tariff-based competitive bidding to select developers. In this process, developers compete by offering the price at which they can supply power. Lower tariffs can help the buyer control long-term electricity costs, while project returns still depend on construction, financing, plant output and grid connection.
UPERC asks developers to speed up work
UPERC said the PPAs were signed with successful bidders in line with the tender documents and earlier commission orders. The commission also asked the developers to take proactive steps for smooth implementation and timely completion.
This direction matters because tariff approval is only one stage of a solar project. Developers must still arrange finance, complete land and site work, install solar panels, connect the plant to the right substation and meet project timelines.
The selected plants will supply power to UPPCL through grid-connected photovoltaic systems. Their output will support agricultural feeders identified under the scheme. The projects will also add to Uttar Pradesh’s growing solar procurement base.
Why the tariff matters for Uttar Pradesh
A tariff of Rs 2.91 per unit gives UPPCL access to solar power at a competitive rate in this group of PPAs. The difference between the lowest and highest approved tariff is only eight paise per unit, showing a narrow price range among the selected projects.
For farmers, the key issue will be the quality and timing of supply. Solarisation can support daytime power for irrigation, but the final benefit will depend on plant performance, feeder design, grid capacity and project execution. Panels alone cannot fix a weak connection. The wires need to do their part too.
With the latest approvals, 10 more PPAs can move towards execution under PM-KUSUM Component C-2. The next steps will focus on building the plants, linking them to the designated substations and bringing the approved solar capacity into service.
