PSERC Draft MYT Regulations 2025 Impact on Solar Tariffs

Posted Date:

July 17, 2025

PSERC Draft MYT Regulations 2025 Impact on Solar Tariffs

The Punjab State Electricity Regulatory Commission (PSERC) has released its Draft Multi-Year Tariff (MYT) Regulations for 2025, setting the stage for significant changes in solar tariff policies across the region. Solar developers must analyze these regulations carefully as they will impact energy costs, grid access, and project profitability throughout Punjab’s power sector.

Key Factors Affecting Solar Projects Under New Regulations

The MYT framework establishes critical rates that directly affect solar viability:

Revised feed-in tariffs for grid-connected systems
Updated wheeling charges for power transmission
Modified cross-subsidy surcharges

Rooftop Solar Developments

PSERC’s proposals include significant net metering policy revisions that could reshape the economics of distributed generation. These changes particularly affect:

Homeowners with residential solar installations
Commercial properties with on-site generation
Industrial facilities implementing sustainable rooftop solar for manufacturing

Opportunities and Challenges in the Draft Regulations

While introducing stricter cost controls, the policy simultaneously pushes for greater renewable integration, creating both constraints and potential benefits:

Project Incentives

Enhanced depreciation benefits for new solar installations
Possible transmission loss waivers for captive plants
Streamlined banking for excess solar generation

Energy Storage Considerations

The regulations’ approach to storage-linked tariffs could transform grid stability as battery costs decline, potentially creating new revenue streams for solar+storage projects.

Notable Regulatory Gaps

PSERC’s draft lacks clarity on hybrid energy systems, leaving solar-wind and solar-diesel projects in regulatory uncertainty – a situation reminiscent of Maharashtra’s 2022 policy challenges.