government subsidy for solar panels in tamilnadu

Tamil Nadu is one of the most industrialised states in India with a high Human Development index. It is situated at the south eastern end of the Indian peninsula , between  Latitude 8° 5′ N and 13° 35′ N and between Longitudes 76° 15′ E and 80° 20’E.
Tamil Nadu Electricity Board (TNEB) was formed on July 1, 1957 under section 54 of the Electricity (Supply) Act 1948 in the State of Tamil Nadu as a vertically integrated utility responsible for power generationtransmission and distribution.

Solar Panel Cost 

Solar Panel TypePrice
Cost of one Solar PanelRs. 1,000 to 25,000
Cost of small Solar PanelRs.1,000 to 3,000
Cost of Portable Solar PanelRs 3,000 to 7,000
Cost of 12v Solar PanelRs.1,000 to 9,500
Cost of 24v Solar PanelRs 20,000 to 25,000

Application: Solar power system is looked as an independent of power solution by many and similarly a lot believe it to be a power backup solution. Technically both are true as the solar system can independent power source -ie –

Off Grid Solar Power System – Such system are deployed where the power outage is too frequent, or long power cuts or low voltage conditions. Also places where getting electricity to reach is still a challenge, such a solution is a boon. Subsidy in such a case is not an option.

Price of Off Grid Solar Power System

Solar System Size Price
1 kW Off Grid Solar SystemRs. 96,000
2 kW Off Grid Solar SystemRs. 1,92,000
3 kW Off Grid Solar SystemRs. 2,88,000
5 kW Off Grid Solar SystemRs. 4,80,000
7.5 kW Off Grid Solar SystemRs. 7,20,000
10 kW Off Grid Solar SystemRs. 9,60,000

On Grid Solar Power System -this system is connected with the Grid and is provisioned to avail subsidy. More interestingly the MNRE has recently introduced a new process that will help the home owners to avail the subsidy by getting few entries along with the digital pic of theirs on a specified portal. This initiative has made the entire process for users very convenient and simple. Users who want to leverage the subsidy and the benefits of lower electricity bills tend to avail this.

Price of On Grid Solar Power System

Solar System SizePrice
1 kW On Grid Solar SystemRs. 60,000
2 kW On Grid Solar SystemRs. 1,20,000
3 kW On Grid Solar SystemRs. 1,80,000
5 kW On Grid Solar SystemRs. 3,00,000
7.5 kW On Grid Solar SystemRs. 4,00,000
10 kW On Grid Solar SystemRs. 6,00,000

The Benchmark costs for Grid Connected Rooftop Solar Power Plants for the Year 2020-21 communicated by MNRE is as under:-

CapacityBenchmark cost (Rs/Wp)
Up to 1KW54
Above 1 kW and upto 2 kW43
Above 2 kW and upto 3 kW42
Above 3kW and upto 10kW41
Above 10 kW and upto 100 kW38
Above 100 kW and upto 500 kW36

PHASE-II Grid connected Solar rooftop programme

The Cabinet Committee on Economic Affairs (CCEA) has approved the Phase-2 of Grid Connected Roof top Solar programme for achieving cumulative capacity of 40 GW from Roof top Solar (RTS) projects by 2022 through a total Central Financial support of Rs.11,814 Cr. This scheme is proposed to be implemented through the Electricity Distribution Companies (DISCOMs).

The brief of different components/ incentives are as follows:

Component A : Central Financial Assistance (CFA) to residential sector – 4GW:

  • CFA at 20% for capacity beyond 3 kWp and upto 10 kWp
  • CFA at 20% for Group Housing Societies (GHS)/Residential Welfare Associations (RWA) capacity upto 500 kWp (limited to 10 kWp per house and total upto 500 kWp).
  • Domestic manufactured modules and Solar cells to be used.
  • CFA shall be on benchmark cost of MNRE for the State/UT or lowest of the cost discovered in the tenders for that State/UT in that year, whichever is lower.

Component B: Incentives to DISCOMs – for initial 18 GW Capacity:

  • Progressive incentive for DISCOMs for achievements above baseline (the cumulative RTS capacity installed at the end of previous financial year).
  • No incentives for capacity addition up to 10%
  • 5% incentives for addition beyond 10% and upto 15%
  • 10% incentives for addition beyond 15%

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