Karnataka Move Towards P2P Solar Transactions with Blockchain

Karnataka is modernizing its energy system with new KERC rules allowing direct solar transactions using blockchain.

By Sunil Sonkar
2 Min Read
Karnataka Move Towards P2P Solar Transactions with Blockchain

Karnataka is taking big steps to update its energy system. The Karnataka Electricity Regulatory Commission (KERC) is introducing new rules to manage solar energy transactions directly between people using blockchain technology.


The genesis of these regulations lies in KERC’s earlier acknowledgment of solar rooftop photovoltaic (SRTPV) projects under self-investment by consumers. The existing framework allows for net or gross metering arrangements for injecting energy into the grid, with the commission determining the tariff payable to prosumers. Building upon this foundation, the KERC, through a December 9, 2019 order, opened avenues for third-party investments in SRTPV projects on consumers’ rooftops, enabling diverse business models and power purchase agreements.

While current SRTPV arrangements facilitate energy transactions between consumers and distribution utilities, a novel concept has emerged – P2P solar energy transactions through a blockchain-based platform. This new way lets regular people or those who produce their own energy sell extra power directly to others at prices they both agree on. It is great because it spreads out the power sources, uses more renewable energy, works better and saves money as well.

Bringing in P2P transactions is expected to help people get their invested money back faster and make Karnataka’s energy system more eco-friendly and efficient.

If these rules happen, they will affect all the companies giving out power and the people who use it in Karnataka. They are made to work together with the current rules about solar panels on roofs, the rules for how the power grid works and the technical standards for making electricity in different ways. The mandates stipulate that distribution licensees must provide gross or net metering arrangements to eligible consumers on a non-discriminatory and first-come, first-served basis. Participants in P2P transactions must install grid-connected SRTPV plants as per specified capacity requirements and relevant regulations.

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