Karnataka data centre policy 2022- Green Power Tariff Reimbursement

The incentive is part of the Karnataka Data Centre Policy 2022-27, administered by the Karnataka Innovation & Technology Society under the Department of Electronics, IT, Biotechnology & Science & Technology, Government of Karnataka. The purpose of the Green Power Tariff Reimbursement is to encourage data centre entities to consume renewable energy by providing a financial reimbursement linked to green/renewable power usage. For your business this means if you use a high proportion of renewable energy, you can recover part of your cost through this reimbursement, improving your operating economics and supporting sustainability.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Eligible only for data centre entities using renewable energy beyond a threshold (50%+): The policy states that data-centre units that use energy from renewable sources above 50% of their total power consumption will qualify for the green power tariff reimbursement.
Reimbursement rate of INR 0.50 per unit of power, surcharge on green component, for 5 years: The policy mentions that for data centres meeting the green-energy threshold, the state will reimburse ₹ 0.50 per unit for 5 years.
Additional power‐tariff concession: Industrial tariff instead of commercial for data centres with minimum 30% green energy component: The Policy also provides that data centre entities that have minimum 30% green energy component can be eligible for industrial power tariff rather than commercial tariff lowering their tariff cost further.
Cap on reimbursement: up to 5 MW equivalent or ceiling in ₹ (₹ 1.25 crore) for first 5 years: In the original policy, the green power reimbursement incentive was capped for up to 5 MW and up to ₹ 1.25 crore (with annual ceiling of ₹ 25 lakh).
Amendment in 2025: removal of 5 MW cap: A recent update indicates that the Karnataka Cabinet removed the 5 MW cap for data‐entities to qualify for green power tariff reimbursement up to ₹ 1.25 crore.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Reimbursement for green power usage	₹ 0.50 per unit for eligible green energy usage for 5 years	Example: Suppose your data centre consumes 100 million kWh in a year, of which >50% is from renewable sources - you may claim reimbursement of 60 million × ₹ 0.50 = ₹ 3 crore .
Cap on reimbursement	Up to 5 MW capacity equivalent / up to ₹ 1.25 crore	Example: If you consume green power beyond what the cap allows, the reimbursement will be limited to the cap (e.g., ₹ 1.25 crore) unless amended.
Power‐tariff concession	Eligibility for Industrial tariff vs Commercial tariff (with ≥30% green usage)	Example: Because you have 30% green usage, your data centre is charged industrial tariff instead of commercial, reducing cost per kWh.

Eligibility Criteria

Who can apply:

A legal entity registered as a Data Centre Developer / Data Centre Operator / Cloud Service Provider under the Karnataka Data Centre Policy 2022-27.
Must be located in Karnataka but this green power reimbursement part generally applies state-wide.
Must have a minimum of 50% of its total power consumption from renewable sources to claim the reimbursement.
For the power tariff concession part: at least 30% green energy component to avail industrial tariff instead of commercial.

Who cannot apply:

Entities not registered under the Policy or not recognised as Data Centre entities will not qualify.
Entities that do not meet the green usage threshold (50% for reimbursement or 30% for tariff concession) will not get these incentives.
In the original policy, if the entity’s green usage exceeds the cap or the reimbursement claimed would go beyond the cap, only up to the cap is eligible.
Entities commuting to alternative schemes or that have already claimed incompatible benefit may be excluded.

Documents Required

Certificate of registration under Karnataka Data Centre Policy 2022-27 .
Power consumption data and bills for the claim period; meter readings, energy audit report showing renewable share >50%.
Power purchase agreement / open access agreement or captive RE documentation showing renewable supply to the data-centre.
Application form for Green Power Tariff Reimbursement .
Bank account details for reimbursement.
Any prior claim certificate or capacity declaration if applicable (in case of earlier cap/no cap change).

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.
Recommended for: Large data centres or park-developers expending high capital who wish to ease claim process.

Option 2: Via KITS / Single Window Portal

Register your data-centre entity under Karnataka Data Centre Policy 2022-27 with KITS and obtain eligibility certificate.
Ensure your power draw / consumption records show >50% renewable energy sourcing for the claim period; submit power purchase agreements, open-access RE documentation, energy bills.
Apply for reimbursement via the nodal portal citing the clause: “Green Power Tariff Reimbursement”. Attach invoices, meters/consumption data, audit certificate.
On approval, reimbursement of ₹ 0.50 per unit surcharge for five years will be disbursed—subject to capacity/previous cap and annual ceilings.

Option 3: Via Energy / Open-Access Consultant Support

Engage a consultant or open-access specialist to structure your renewable sourcing ensuring >50% share.
Document the energy consumption and sourcing ratio; secure certification from an approved auditor.
Submit the reimbursement application according to steps in Option 2; the consultant may assist with measurement, calculation, documentation and follow-up.