Karnataka Draft RPO 2026: 35.95% to 43.33% by FY2030 for C&I Users

What KERC Proposed

The Karnataka Electricity Regulatory Commission published a draft regulation in the State Gazette on October 22, 2026. It would replace the Commission's 2011 renewable procurement regulations and their amendments with a single new framework, the Karnataka Electricity Regulatory Commission (Procurement of Energy from Renewable Sources) Regulations, 2026.

The draft follows a September 2025 notification from the Ministry of Power under the Energy Conservation Act, which changed the central Renewable Consumption Obligation framework. According to the draft, differences between the central and state rules had made compliance monitoring, timelines and the use of Renewable Energy Certificates harder to manage. The new regulation is meant to line the state up with the central one.

Who Is Covered

For C&I developers, the second and third rows matter most. A factory or campus with a 1 MW captive plant or 1 MW of open access demand would carry its own obligation.

The Targets by Year

Over the period the target rises by 7.38 percentage points. The increases get smaller each year. The draft covers 2026-27, which started on April 1, 2026, so the first target would apply to a year that is already underway.

How the Obligation Is Divided

The total is split into four categories: wind, hydro, distributed renewable energy and other renewable energy. Public reports of the draft do not give the target for each category in each year.

• Distributed renewable energy covers projects below 10 MW, which includes rooftop solar.
• Other renewable energy covers wind and hydro projects commissioned before April 1, 2024, along with biomass pellets and charcoal made from municipal solid waste.
• Wind and hydro obligations must generally be met from projects commissioned after March 31, 2024.

Two rules shape how entities can mix sources. A surplus in some categories can make up for a shortfall in others. But a shortfall in distributed renewable energy cannot be covered by a surplus from other sources. That limit means rooftop and small solar cannot simply be replaced by buying wind power.

Ways to Comply

The draft allows an obligated entity to meet its target through:

• direct purchase of renewable electricity;
• storage-linked renewable power;
• captive generation from plants of at least 250 kW;
• Renewable Energy Certificates, bought or self-generated through mechanisms registered with the central regulator; or
• paying the buyout price set by the central regulator.

Obligated entities would send annual electricity consumption and renewable procurement data by July 31 after each financial year. The State Load Despatch Centre or another designated agency would report on compliance to KERC by August 31. Failure to comply or to provide information could lead to proceedings under Section 142 of the Electricity Act, 2003.

Dates

• October 22, 2026: draft published in the State Gazette.
• About November 21, 2026: comments, suggestions and objections due, 30 days from publication.
• After comments: KERC finalises the regulation. No date has been reported.
• July 31 each year: obligated entities report consumption and procurement data, starting with 2026-27 if the draft is adopted as written.

What This Means for Solar EPCs

• It adds a reason for C&I customers to build. A customer near the 1 MW line that has to meet a rising obligation can count captive generation of at least 250 kW. The rule gives EPCs a compliance argument for onsite or captive solar, as well as a savings argument.
• Distributed solar keeps its own lane. Because a distributed renewable energy shortfall cannot be covered by other sources, rooftop and small ground-mount solar below 10 MW is the one way to meet that part of the target. That is a durable reason to size systems to the obligation.
• Storage-linked renewable power counts. A solar plus battery design could meet the obligation, which supports offers that combine the two.
• Data matters. SLDC reporting means customers will need clean metering and generation records. Designs that make meter data easy to extract will help them report.
• Treat the details as provisional. The split of the target by category and year, whether existing captive plants count and how certificates will be treated are not clear from public reports. Customers should check the final regulation.

Where Design Software Fits

A customer weighing a captive plant against buying certificates will want sized options to compare. Design software like Reslink produces layouts, bills of material and single line diagrams for rooftop and ground-mount systems, and supports ground-mount feasibility up to 1 GW, so a proposal can show how much capacity a site can host. It does not calculate a customer's obligation.

See the full workflow → Book a demo

Frequently Asked Questions

Q1. What is Karnataka's draft RPO regulation?

A draft regulation from the Karnataka Electricity Regulatory Commission that replaces the 2011 renewable procurement rules and sets rising renewable energy obligations from 2026-27 to 2029-30.

Q2. What is the target?

35.95% in 2026-27, 38.81% in 2027-28, 41.36% in 2028-29 and 43.33% in 2029-30.

Q3. Who has to comply?

Distribution licensees, open access consumers with contracted demand of 1 MW or more, and consumers with grid-connected captive plants of 1 MW or more.

Q4. Can rooftop solar count?

Yes. Distributed renewable energy covers projects below 10 MW, including rooftop solar, and a shortfall in that category cannot be covered by other sources.

Q5. Can a company use certificates or pay a buyout price?

The draft allows Renewable Energy Certificates and payment of the buyout price set by the central regulator, in addition to direct purchase, storage-linked renewable power and captive generation of at least 250 kW.

Q6. When are comments due?

Within 30 days of publication in the Gazette on October 22, 2026, which is about November 21.

Q7. Is it final?

No. It is a draft, and KERC will consider stakeholder comments before finalising it.

Final takeaway

Karnataka's draft would raise the renewable obligation for large power users by about seven points over four years and protect a separate lane for distributed solar. For C&I EPCs the useful points are the 1 MW thresholds, the 250 kW captive route and the rule against covering a distributed shortfall with other sources, all subject to the final text.

You May Also Like

• Karnataka Solar Tariffs 2026-29: Net Metering, BESS Rules
• Your First C&I Open Access Project: A Step-by-Step Entry Guide
• India's New Electricity Rules 2026: What Solar EPCs Must Know

Sources

• SolarQuarter, KERC Proposes Renewable Energy Obligations To Reach 43.33% By FY2030 In Karnataka (October 28, 2026)
• Mercom India, Karnataka Proposes 43.33% Renewable Purchase Obligation by FY 2030 (October 28, 2026)

This guide reflects published summaries of KERC's draft regulation as of November 2, 2026. Check the Gazette notice and KERC's website for the draft text and the final regulation before relying on a figure or date.