Developers warn that the current ceiling is squeezing margins and deterring energy storage investments.

India’s Solar Industry Pushes for Higher Power Price Cap Amid Record Demand.

India’s solar industry has urged the Central Electricity Regulatory Commission (CERC) to raise the price cap on electricity traded on power exchanges, citing financial stress despite record-high demand. The National Solar Energy Federation of India (NSEFI) said the existing ceiling of ₹10 per unit prevents companies from recovering losses incurred during low-demand periods and is slowing fresh investment, particularly in energy storage. The appeal comes as peak power demand surged to unprecedented levels due to heatwaves, touching 260.45 GW, according to the Ministry of Power. While a separate high-price market segment exists, the industry body said it has seen limited traction due to a lack of willing buyers. Solar producers argue that being forced to sell power cheaply during slack periods, without the ability to earn more during peak demand, undermines project viability. NSEFI warned that maintaining the current cap could deter investment in storage and flexibility solutions critical for managing India’s future power needs. The regulator has heard the petition and reserved its order.