Tamil Nadu has again proved to be at the forefront of generating renewable energy by creating an investor and environmental friendly Solar Policy which puts in the right set of incentives to bridge the tremendous power gap as well as reduce dependence on centralized generation. Click here for Tamil Nadu_Solar_Energy_Policy_2012

Given the current decreasing costs for Solar and increasing power issues, we see TN more than meeting its objective ahead of time.

Salient Points below:

1. 3000 MW Installed by 2015, with a GW per year
2. Mandatory 6% Solar Purchase Obligation SPO with 3% upto Dec 2013 and 6% thereon
3. Applicable to SEZs, Industries, IT Parks, Telecom Towers, Educational Institues, Structures with 20,000 sq m of Built up area
4. SPO will be administered by TANGEDCO
5. Captive Generation permitted for SPO using separate meters
6. Rooftop GBI per KWh generted of Rs. 2 for initial 2 years, Rs. 1 for the next 2 years and 0.5% for the remaining 2 years for those installed before 31st March, 2014
7. All government / local bodies mandated to use solar power
8. Solar Water Heating mandated for entire state (A Boon for Solar Thermal Manufacturers), as well as for industries using hot / steam boilers
9. Solar Park developments promoted under the policy of upto 650MW, with a minimum of 50MW per district
10. Competitive bidding for public sectors
11. RECs and CDM can be availed in addition to GBI
12. Single Window Clearance
13. Indigenous products and panels will be promoted
14. Supporting organizations will be created for a balanced ecosystem
15. Preference in SEZs and Exclusive Manufacturing SEZs to be promoted
16. Reduction of T&D by installing solar plants at site recommended for Industries
17. Net Metering allowed at multiple voltage levels for rooftops
18. Exemption from electricity charges for initial 5 years as well as no demand cuts for captive / self use

Overall the policy is a path breaker for a state plagued by the poor deployment of wind which has brought the discom to the brink of failure.