Kochi: The Kerala State Electricity Board (KSEB) has come under criticism for underpaying solar power producers, ignoring a directive from the State Electricity Regulatory Commission to offer ₹4.36 per unit for power supplied to the grid. Instead, KSEB is paying just ₹3.26 per unit.

As per central electricity regulations, renewable energy producers must be compensated based on the average cost of power generated within the state and power purchased from outside. Following this guideline, the Commission had fixed the average power cost in Kerala at ₹4.36 per unit. However, KSEB opted to use an alternative method, adding a 3.15% inflation adjustment to last year’s rate of ₹3.15, to arrive at ₹3.26.

This marks a significant deviation from the pricing methodology the Commission has consistently followed for the past six years. Notably, KSEB did not raise any formal objections with the Commission before implementing the revised rate. No other state in India is known to have adopted such a pricing mechanism.

Despite a shortfall in hydroelectric generation last year, Kerala was able to meet its daytime electricity demand largely through solar energy. The state generated a total of 125 million units of power from renewable sources over the year.