PSERC Approves PSPCL's Rooftop Solar Initiative on Over 1,000 Office Buildings
Punjab State Electricity Regulatory Commission has approved Punjab State Power Corporation’s plan to install 31.37 MW of rooftop solar systems on 1,013 office buildings state-wide under the CAPEX model. The regulatory commission has approved a capital expenditure of INR 123.3 crore while disallowing additional INR 32.64 crore in administrative charges.
July 16, 2025. By Mrinmoy Dey
The project, with a proposed capacity of 31.37 MW and an expected cost of INR 123.3 crore (excluding administrative overheads), will be implemented under the capital expenditure (CAPEX) model.
The initiative, aligned with the Ministry of New and Renewable Energy’s (MNRE) guidelines for rooftop solar saturation of government buildings, aims to make PSPCL’s infrastructure self-sufficient in power consumption, enhance renewable energy integration, and contribute toward meeting the state’s Renewable Purchase Obligation (RPO) targets.
The installations, spread across various PSPCL zones and key operational sites including thermal and hydel stations, are expected to generate approximately 46.74 million units (MUs) annually. For the first 15 years, the estimated per-unit generation cost is INR 3.26, after which energy will be available at zero cost for the remaining 10 years of the projected 25-year plant life.
Seven packages have been awarded to successful bidders including Sugs Lloyd, Neo Energy Solutions, Eco Global Sales Corp, A.P. Technologies, and Solizer Energytech, following a competitive tendering process. The Commission has directed PSPCL to complete the project within one year of work order issuance, failing which penalties may apply.
While PSPCL had initially projected the project cost at INR 160 crore, PSERC has approved only the direct capital cost of INR 123.3 crore, disallowing an additional INR 32.64 crore in administrative charges on grounds of double-counting, as such costs are already covered under the utility’s annual revenue requirement.
The Commission emphasized that all solar generation under this initiative must be transparently metered and accounted for in PSPCL’s ARR filings, with the resulting cost benefits directly passed on to consumers. The rooftop solar capacity will be integrated into PSPCL’s gross fixed assets, enabling full recovery of related financing and operational costs via regulated tariffs.
In a context of surging electricity demand, peaking at 16,058 MW in June 2024, and growing clean energy obligations, this decentralized solar deployment is expected to strengthen grid resilience, stabilize long-term power costs, and advance Punjab’s clean energy transition.
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