Many Karnataka solar project delays start before the first drawing. The developer picks a grid route, prices the land and books a substation bay. Then it learns that the route changes the approval body, the fees and whether banking exists at all. The Karnataka solar policy settles most of those questions in writing, if you read the gazette instead of a summary.
Quick answer. Karnataka’s solar policy in 2026 is still the Karnataka Renewable Energy Policy 2022-27. It was notified on 16 April 2022 and runs from 6 May 2022 for five years or until a new policy is announced. It targets 10 GW of new renewable capacity, including up to 1 GW of rooftop solar. KREDL processes MW-scale applications, ESCOMs run rooftop, and KERC regulations decide wheeling, banking and surcharges.
TL;DR
- The governing document is the Karnataka Renewable Energy Policy 2022-27, amended once in February 2023. We found no notified successor as of 6 October 2026.
- A MW-scale solar project means at least 1 MWac. Captive and group captive projects have no minimum size.
- Your connection route (rooftop, intra-state, inter-state, or CTU through KPTCL) sets the approval body, the charges and the banking rules.
- Open access applications cost ₹15,000 to ₹35,000 per MW. Add ₹2 lakh per MW processing and a ₹5 lakh per MW bank guarantee.
- KERC regulations prevail over the policy. Open access is now governed by KERC's 2025 regulations after the High Court struck down the 2022 green energy rules.
This guide is written for the EPC or developer planning a C&I open access plant or a utility-scale project in Karnataka. For the rooftop net metering paperwork, use our BESCOM net metering guide. For how Karnataka compares with other states, see the state solar policies comparison.
All policy text below was read from the Karnataka Gazette copy of the policy and its first amendment, accessed 6 October 2026.
Which Karnataka Solar Policy Applies in 2026?
The Karnataka Renewable Energy Policy 2022-27 applies. It was issued by the Energy Department under Notification No. ENERGY/209/VSC/2021, dated 16 April 2022, and published in the Karnataka Gazette of 6 May 2022.
It replaced the Karnataka Solar Policy 2014-21 and the RE Policy 2009-14. The policy records 7,523 MW of solar installed by December 2021. The 2014-21 target was 6,000 MW.
The policy runs for five years or until a new one is announced. That puts the expiry window around May 2027. Before you sign a long-term deal, check the KREDL policies page for a successor.
What the 2023 amendment changed
The first amendment, Notification No. ENERGY/507/VSC/2022 dated 27 February 2023, fixed the transition rule. Applications filed with fees on or before 6 May 2022 stay under the old policies for fees, charges and timelines.
Applications received after that date for allotment, time extension, transfer or change of name follow the 2022-27 policy. Projects selected under the SECI ISTS-X tender of July 2021 stay under the Solar Policy 2014-21.
What Does the Policy Target?
Clause 3.2 sets 14 objectives. The ones that change a solar developer’s work are these:
- 10 GW of additional renewable capacity, with or without storage, including up to 1 GW of rooftop solar.
- Renewable energy parks, including solar-wind hybrid parks.
- Solarization of agriculture feeders and pumps, linked to PM-KUSUM.
- Energy storage, floating solar on hydro reservoirs, and solar for EV charging.
The solar section (clause 5.2.3) names six solar markets: intra-state MW-scale, inter-state MW-scale, rooftop, distributed generation, solar for EV charging, and floating solar.
Which Grid Route Fits Your Project?
The route is the first engineering decision, because each one has a different approval body and charge basis. Clause 5.1(c) defines the grid routes. The table below adds rooftop and within-premises plants from clause 5.2.3.
| Route | Who approves or connects | Charges basis | Banking |
|---|---|---|---|
| Rooftop (net or gross metering) | ESCOM is nodal agency | KERC rooftop regulations and tariff orders | Per KERC rules |
| Within premises, grid-connected, no export | ESCOM informed | Grid support charges set by KERC | No net metering; injection not paid |
| InSTS (sale inside Karnataka) | KPTCL evacuation approval within 60 days; ESCOM within 45 days if its network is used | Transmission, wheeling, CSS set by KERC | As determined by KERC |
| ISTS (sale outside Karnataka) | CTU, under CERC connectivity regulations | Transmission charges and losses set by CERC | No banking |
| CTU through a KPTCL substation | KPTCL checks feasibility; central procedure applies | Developer pays the full upstream network cost | No banking (ISTS category) |
Source: Karnataka RE Policy 2022-27, clauses 5.1(c) and 5.2.3. Verify current charges in KERC and CERC orders.
The CTU-through-STU option is easy to misjudge. The developer builds the line, substations and upstream network up to the CTU at its own cost. Assets other than its own pooling substation and radial EHV line are handed to KPTCL after commissioning.
If the difference between the two transmission utilities is unclear, the CTU vs STU glossary entry explains it. Our STU vs CTU transmission planning guide covers the bay and cost trade-offs. Technical connection rules still come from the CEA connectivity regulations.
How Big Must a Project Be?
Clause 5.2.3(b) defines a MW-scale grid-connected solar project as at least 1 MWac. Captive and group captive projects have no minimum capacity for allotment.
A MW-scale plant may sit on land, a rooftop, a floating structure, a canal top, or a mix of these. Each option is subject to evacuation feasibility. Renewable energy parks must be at least 25 MW (clause 5.2.2).
How Does Allotment Through KREDL Work?
KREDL (Karnataka Renewable Energy Development Limited) is the nodal agency for project applications. For solar projects, solar parks and storage, KREDL scrutinizes the file and recommends it. The Energy Department then issues the Government Order (GO).
Wind and hybrid projects go to the State Level Allotment Committee (SLAC) instead. So a solar-wind hybrid follows a different approval path from a pure solar plant.
The application needs tentative land documents and a topo sheet. The applicant’s net worth must be at least 30% of the project cost. For standard solar, that cost is the capital cost per MW in KERC’s tariff orders.
What Fees Does an Open Access Project Pay?
Clause 7.2(b) sets the fees for open access projects, both InSTS and ISTS. Projects won in a state tender follow the tender terms instead.
| Fee head | Solar (incl. floating) |
|---|---|
| Application fee (₹ per MW) | 15,000 up to 10 MW; 25,000 for 11 to 50 MW; 35,000 for 51 MW and above |
| Processing fee (₹ per MW) | 2,00,000 |
| Performance bank guarantee (₹ per MW) | 5,00,000 |
| Net worth | 30% of project cost determined by KERC |
| Time extension fee (₹ per MW per year) | 1,00,000 |
| Transfer fee (₹ per MW) | 1,50,000 |
Source: Karnataka RE Policy 2022-27, clause 7.2(b). Fees are as gazetted; taxes, KPTCL supervision charges and KERC charges are separate.
Worked example: a 20 MW group captive plant
Take a 20 MWac solar plant selling to group captive consumers inside Karnataka. On the clause 7.2 table, the policy-level outlay before construction looks like this:
| Item | Calculation | Amount |
|---|---|---|
| Application fee | 20 MW x ₹25,000 | ₹5 lakh |
| Processing fee | 20 MW x ₹2,00,000 | ₹40 lakh |
| Performance bank guarantee | 20 MW x ₹5,00,000 | ₹1 crore (guarantee, not a fee) |
| One year of time extension, if needed | 20 MW x ₹1,00,000 | ₹20 lakh |
| Maximum land under clause 6.2 | 20 MW x 3.5 acres | 70 acres |
That is ₹45 lakh in fees and ₹1 crore in guarantees before a module arrives. Missing the two-year deadline costs ₹20 lakh a year at this size. It is an illustration only; your actual liability depends on the GO and current notifications.
What Are the Land and Timeline Rules?
Land is the developer’s job. After Energy Department or SLAC approval, and the Revenue Department procedure, the land is treated as deemed converted (clause 5.1(b)). Work may start once the conversion application and fee are filed.
Clause 6.2 caps land use for solar PV at 3.5 acres per MWac. Trackers beyond that are reviewed case by case. Rooftop solar is capped at 100 sq ft per kWp.
Clause 7.1 sets the build deadlines:
| Project type | Commission within | Maximum extension |
|---|---|---|
| Solar, including floating, and solar parks | 2 years from GO | 2 years, with fee |
| Energy storage (non-pumped hydro) | 1 year | 1 year |
| Pumped hydro storage | 4 years | 2 years |
Request an extension from KREDL at least three months before the scheduled commissioning date. If the project misses the extended date, the GO is cancelled and the bank guarantee is forfeited. A partly built plant keeps only its commissioned capacity.
These deadlines are why land, a site survey and feasibility check and the evacuation study should be complete before you file. A two-year clock leaves little room to redesign a pile layout after the GO.
How Are Rooftop and Within-Premises Plants Treated?
Grid-connected rooftop solar is run by the ESCOMs: BESCOM, MESCOM, HESCOM, GESCOM and CESC. They handle registration, approval, metering and safety protocols. Net and gross metering follow the KERC (Implementation of Solar Rooftop Photovoltaic Plants) Regulations, 2016, and later KERC orders.
The project needs safety approval from the Department of Electrical Inspectorate. The policy also allows peer-to-peer rooftop trading pilots under KERC rules.
A plant built inside a consumer’s premises without export is treated differently. If the premises are grid-connected, the consumer pays grid support charges set by KERC. Net metering does not apply, and accidental export is not paid for.
What Changed in Karnataka Open Access After 2024?
The policy leaves wheeling, banking and cross-subsidy surcharge to KERC (clause 5.1(c)). Clause 1.3 also says KERC regulations prevail where they conflict with the policy. So the open access rules matter more than the policy text.
On 20 December 2024, the Karnataka High Court struck down the central Green Energy Open Access Rules 2022. KERC’s own 2022 green energy open access regulations fell with them, as reported by Mercom India. The court held that the power to frame these rules sat with KERC.
KERC then issued the KERC (Terms and Conditions for Open Access) Regulations, 2025, Notification No. KERC-2-TR-2024-25/1805 dated 26 March 2025. According to Renewable Watch (April 2025), non-captive consumers need an HT contract demand or an LT sanctioned load of 100 kW or more. Banking is monthly. For how other states handled the same ruling, see our India solar open access state guide.
Charge levels come from KERC tariff orders, which change each year. Take the current figures from the KERC website before you build a tariff model. The open access glossary entry and energy banking entry explain the terms.
Which Engineering Documents Does the Policy Trigger?
The policy does not list drawings, but its clauses imply a minimum file. This is the checklist we would prepare before a Karnataka open access filing:
- Tentative land documents, survey numbers and a topo sheet (clause 5.1(e)).
- A layout showing land use within 3.5 acres per MWac (clause 6.2).
- An evacuation study and single-line diagram for the chosen KPTCL or ESCOM substation (clause 5.1(c)).
- A module list that complies with ALMM (clause 5.1(g)).
- A DPR, where the project is a park, floating plant or storage project (clause 7 net worth basis).
Our ground mount design service prepares the layout, civil and structural package for this stage. For the wider plant design method, see the ground mount solar design guide.
FAQ
Is the Karnataka Solar Policy 2014-21 still valid?
No, for new projects. The RE Policy 2022-27 superseded it. Under the 2023 amendment, projects that applied with fees by 6 May 2022 keep the old fee and timeline rules. So do the SECI ISTS-X projects of 2021.
Does Karnataka allow banking for solar sold outside the state?
No. Clause 5.1(c.2) states that no banking is extended to ISTS-category projects. Banking for intra-state projects follows KERC regulations.
Who approves a solar park in Karnataka?
The Energy Department approves solar parks on KREDL’s recommendation. A park must be at least 25 MW. Hybrid wind-solar parks go through SLAC instead.
Are renewable projects treated as industry in Karnataka?
Yes, with a limit. The policy treats RE projects as manufacturing industry for State Industrial Policy incentives, except investment promotion subsidies. Check the current Industrial Policy for what that includes.
Plan the Route Before You File
The Karnataka solar policy is generous on land and clear on deadlines. It is also strict once the two-year clock starts. Fix the grid route, land and evacuation design first, then file with KREDL.
If you want a feasibility layout, SLD and evacuation drawings for a Karnataka project, send us your project details. We reply within 1 business day. Verify every approval with KREDL, KPTCL, your ESCOM and KERC before you commit capital.