Tamil Nadu Solar Energy Policy-2012


The aim of this policy is to project Tamil Nadu as a Solar Hub, thereby establishing 3000 M.W by 2015.The policy led by the chief minister of Tamil Nadu envisages towards making Tamil Nadu a world leader in solar energy. It focuses on reducing carbon emissions and promoting Research and development in the solar energy sector.

This development of solar power will be carried out in a 3 year phase (2013-2015).Every year the target would be to produce to 1000 MW, adding up to 3000 MW by the end of year 2015. An SPO of 6% (starting with 3% till December 2013 & 6%from January 2014) will be mandated on HT consumers which includes SEZs, Industries guaranteed with 24/7 power supply, IT Parks, Telecom Towers. Colleges & Residential Schools. A set of consumers are exempted from the SPO under LT commercial category which includes Domestic consumers, Huts, power looms, cottage & tiny industries and agricultural consumers.

The policy shows the breakdown as in how to achieve the 3000 MW of solar power through utility scale, solar roof tops and REC.In the utility scale out of 1500 MW, 1000 MW will be funded through SPO and balance 500 MW through Generation Based Incentive (GBI) provided by the Government.

Government of Tamil Nadu is adopting various measures to promote solar roof tops systems by targeting domestic consumers. A generation based incentive (GBI) of Rs 2 per unit for first two years, Re 1 per unit for next two years, and Re 0.5 per unit for subsequent 2 years will be provided for all solar or solar-wind hybrid rooftops being installed before 31 March, 2014.They also intend to promote solar water heating systems and Solar parks to stir the awareness among wide array of consumers.

As solar power is expensive compared to conventional/other renewable energy, the government aims to adopt a cost effective approach, wherein they will select the developers through a tariff based/reverse bidding. Another means of procuring are the REC, Carbon Credits and Single window (TEDA).

One good initiative taken in this policy is extending Net metering solar power systems installed in commercial establishments and individual homes connected to the electrical grid. It has also announced exemption from electricity tax, tax concessions, exemption from demand cut to those who produce solar power from their rooftop. The below table shows few of the policy initiatives:

Open Access at 33 K v Unit HT IND Consumer
Transmission Losses % 5%
Wheeling Losses % 7%
Banking Charges % 0
Wheeling Charges R.s/kWh 0.14
Cross Subsidy Charges R.s/kWh 2.07
Electricity Tax % 0%
Base Rate (Assumed) R.s/kWh 5
Demand cut % 0
Open Access Charges R.s/kwh 6483

Tamil Nadu is considered to be one of the most suitable regions in the country for the development of solar power projects. These kind of policies aiming at the development of solar power acts like a push strategy and also sets a tone for the development, which every state should look upon, as conventional energy source is depleting day by day.

For more information read here: T N Solar Policy 2012

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One response to “Tamil Nadu Solar Energy Policy-2012

  1. We are relaunching tamilnadu.com to be a global site for tamilnadu-related news, across a range of topics. I’d like you to be a regular contributor. If you’d like to repost or blog on the site, which will be new, and freshly designed, let me know asap.

    Please email me at vashiva@vashiva.com
    VA SHIVA

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