What this means
Two new draft amendments — the 5th and 6th — propose to extend the current ₹1.50/unit banking charge, then replace it with a scientifically determined rate from September 2026 onwards. Here's what it means for C&I consumers in Gujarat.
What Is Banking and Why Does the Charge Matter?
Banking is one of the most commercially important features of Green Energy Open Access for C&I consumers in Gujarat.
Banking in plain language: when your solar or wind plant generates more power than you consume in a 15-minute slot, the surplus units are “banked” — virtually stored with the DISCOM. You can draw them back later when your consumption exceeds generation. This lets you run a solar-heavy plant without worrying about slot-by-slot matching of generation and consumption.
The banking charge is what you pay the DISCOM for providing this service — it compensates the utility for the cost of managing the surplus energy on your behalf. For a typical C&I GEOA project in Gujarat consuming 1 MU/month, the difference between ₹1.50/unit and ₹1.00/unit banking charge translates to approximately ₹4–6 lakhs per year in savings, depending on your banking utilisation rate.
Key Banking Rules Under GERC GEOA Regulations 2024
| Parameter | Rule |
|---|---|
| Banking period | One calendar month (billing cycle) — no carry-forward to next month |
| Banking limit | Maximum 30% of total monthly consumption from DISCOM in a billing cycle |
| Off-peak to peak use | Energy banked in off-peak slots cannot be drawn in peak slots |
| Peak to off-peak use | Energy banked in peak slots can be drawn in both peak and off-peak slots |
| Lapse rule | Any banked energy unused at month-end is deemed lapsed — no compensation |
| No-banking option | Consumers can opt out of banking; surplus then treated as inadvertent flow |
The ₹1.50 Journey — Six Extensions and Counting
GERC originally set the banking charge at ₹1.50/unit as an interim measure when GEOA regulations were first notified in February 2024. The rate has since been extended five times — and a sixth is now proposed. Developing a scientifically sound methodology requires 15-minute slot-level data from all DISCOMs (DGVCL, MGVCL, PGVCL, UGVCL, Torrent Power, and smaller licensees) — collecting, validating and analysing this across 165+ GEOA consumers tracked in the latest study has taken longer than initially anticipated.
Draft 5th Amendment — Bridging the Gap to 31 August 2026
Stakeholder comments invited until 20 June 2026. Public hearing: 22 June 2026. Will come into force only upon publication in the Official Gujarat Gazette.
With the 4th Amendment’s ₹1.50/unit validity expiring on 30 June 2026, and the comprehensive 6th Amendment methodology still undergoing consultation, GERC proposes a two-month extension to avoid a regulatory gap.
| Aspect | Detail |
|---|---|
| Regulation amended | Regulation 1(4) and 17.6(viii) of GEOA Regulations 2024 |
| What changes | Banking charge of ₹1.50/unit extended until 31 August 2026 (or earlier if GERC notifies separately) |
| What does NOT change | All other banking rules — limits, ToD slot restrictions, lapse rules — remain unchanged |
| Stakeholder comments due | 20 June 2026 |
| Public hearing | 22 June 2026 (hybrid mode) |
No action needed for July–August 2026 — your existing GEOA project economics remain unchanged at ₹1.50/unit. Focus on the 6th Amendment, which makes the substantive change from September 2026 onwards.
Draft 6th Amendment — The Big Change: New Rate + New Methodology
Stakeholder comments invited until 20 July 2026. Public hearing: 21 July 2026, hybrid mode, GERC office at GIFT City, Gandhinagar.
Part A — The New Rates
| Period | Proposed Rate | Basis |
|---|---|---|
| 1 Sep 2026 – 31 Mar 2027 | ₹1.00/unit | Based on GERC study of 165 GEOA consumers (Apr 2025–Jan 2026). Estimated actual cost ₹1.06/unit, rounded down to ₹1.00 acknowledging data limitations. |
| 1 Apr 2027 onwards | Data-based (annual) | Determined each FY from preceding calendar year DISCOM data. Floor ₹0.50/unit, Ceiling ₹1.50/unit. |
Part B — Floor and Ceiling Mechanism (from FY 2027-28)
Banking charge cannot fall below ₹0.50/unit regardless of actual cost computation (protects DISCOM revenue adequacy) and cannot exceed ₹1.50/unit (protects GEOA consumers from runaway increases). This floor-ceiling applies only if the DISCOM provides complete, accurate data via sworn affidavit in the specified format and timeline — if a DISCOM fails to provide adequate data, its banking charge is deemed Nil for that period.
Part C — DISCOM-wise vs. Common Charge
| Category | Approach |
|---|---|
| State DISCOMs (DGVCL, PGVCL, MGVCL, UGVCL) | Commission may determine a common banking charge applicable to all four |
| Private licensees with common procurement | Commission may apply a common charge |
| SEZ/SIR/Port DISCOMs and new licensees | Commission may apply the same charge as state DISCOMs |
| Torrent Power (private, independent) | Individual determination based on Torrent’s own data submission |
How Will the Banking Charge Be Calculated from FY 2027-28?
The key formula: Banking Charge (₹/unit) = Aggregate Net Banking Cost ÷ Total Banked Energy. “Net banking cost” is the DISCOM’s cost of managing banked energy (backing down thermal plants, buying/selling on IEX, using BESS) minus the revenue earned from those activities.
Key Inputs Used in the Methodology
| Input | Source | Why It Matters |
|---|---|---|
| IEX Market Clearing Price | Real-time (10.5%) + Day-ahead (89.5%) | Determines whether DISCOM sells surplus on exchange or uses internally |
| Variable cost of marginal thermal station | GERC Tariff Order | Benchmark for DISCOM’s internal generation cost |
| Backing down cost | 8% of total thermal cost (CEA Flexibilisation Report) | Cost of reducing thermal output when surplus RE is available |
| BESS LCOE | Average of BESS bids (without VGF) from preceding year | Cost of energy storage used by DISCOM to manage RE surplus |
| Transmission charges & losses | GERC Tariff Order, ISTS loss data | Adjusts the effective cost of IEX transactions |
| Distribution losses | Latest GERC True-up Order per DISCOM | Net injection = gross injection × (1 − loss%) |
What This Means for C&I Consumers in Gujarat
Impact on Project Economics
| Period | Banking Charge | Change vs. Today |
|---|---|---|
| Until 30 Jun 2026 | ₹1.50/unit | Baseline |
| Jul–Aug 2026 (5th Amendment) | ₹1.50/unit | No change |
| Sep 2026–Mar 2027 (6th Amendment) | ₹1.00/unit (proposed) | ▼ ₹0.50/unit saving — ~₹5 lakhs/MW/year* |
| From Apr 2027 onwards | ₹0.50–₹1.50/unit | Variable, depends on DISCOM data |
*Indicative only, based on ~10 MU/MW/year banking utilisation at ₹0.50/unit saving. Actual impact varies with consumption profile, banking utilisation rate, and DISCOM.
These are draft regulations undergoing stakeholder consultation. The final notified charge may differ from the draft — continue using ₹1.50/unit for project appraisals until official gazette notification.
ToD Banking Rules — Unchanged but Important to Re-review
| Solar generation period | Can bank in | Can draw back in |
|---|---|---|
| Off-peak slots (daytime solar hours) | Off-peak banking pool | Off-peak slots only |
| Peak slots (if any generation) | Peak banking pool | Both peak and off-peak slots |
| End of month surplus | Lapses — no compensation, no carry-forward | |
Sources & references
- GERC’s Draft Banking Charge — 5th & 6th Amendment Regulations for Green Energy Open Access, Gujarat Electricity Regulatory Commission. Full draft and consultation details at gercin.org. This page is for information only and is not legal advice; refer to the official regulation for binding text.
Quick answers
- What is the banking charge today?
- ₹1.50/unit, extended through the Draft 5th Amendment until 31 August 2026, pending the 6th Amendment.
- When does the new ₹1.00/unit rate take effect?
- If notified as drafted, from 1 September 2026 through 31 March 2027, after which it becomes a data-based annual determination (₹0.50–₹1.50/unit band).
- Should I use the new rate in my project appraisal now?
- No — these are draft regulations under consultation. Continue using ₹1.50/unit until official gazette notification.