Supreme Court Confirms Higher Solar Tariff, Backs Tribunal’s Decision for Karnataka Projects

The Supreme Court has confirmed a decision by the Appellate Tribunal for Electricity (APTEL) to restore the tariff of ₹8.40 per unit for several solar power developers in Karnataka. The decision also allows an extension for the commissioning date of a solar power project under the force majeure clause, which applies to unforeseen circumstances.

The Supreme Court emphasized that constitutional courts should be cautious when reviewing decisions made by specialized tribunals, especially in areas that require technical expertise. The court stated that this caution is necessary to allow regulators and tribunals to develop sector-specific laws in a consistent and principled way.

The Supreme Court overturned an earlier order by the Karnataka Electricity Regulatory Commission (KERC) that had reduced the tariff. The court agreed with the tribunal’s decision to restore the original tariff and ordered Bangalore Electricity Supply Company (BESCOM) to pay the farmers the difference in tariff per unit, along with any late payment charges.