The Karnataka Electricity Regulatory Commission (KERC) has retained the deviation settlement mechanism (DSM) tolerance band for solar projects to ±5%, rejecting stakeholder suggestions to keep it at ±10% for at least two years.In April 2026, the Karnataka High Court stayed enforcement of CERC’s revised DSM norms for renewable energy developers, including the narrower ±5% solar deviation band, allowing developers to comply with the earlier norms for now.
