Tamil Nadu – Solar PV Tariff set at Rs. 7.01/kWh

Some good news for Tamil Nadu Solar at last. The Tamil Nadu Electricity Regulatory Commission(TNERC) has finally released the tariff order on solar power. The tariff order comes more than a year after the TNERC released a consultative paper proposing a tariff of Rs.5.78/kWh.
The tariff, applicable for a control period of one year, will be Rs 7.01/kWh without Accelerated Depreciation(AD), and Rs. Rs 6.28/kWh with AD. The duration of the Power Purchase Agreement(PPA) will be 25 years, and there will be no tariff escalation. It  may be recalled that the “workable tariff” under the state’s solar policy was Rs. 6.48/kWh with an escalation of 5% per annum for 10 years for a PPA of 20 years.
The TNERC has clarified that this is a generic tariff, and is not applicable for the projects under the state solar policy. According to The Times of India, a decision on those projects will be taken very soon. It is also expected that the Solar RPO for the state will be increased from 0.25% to 2% as proposed by the TNERC(more here).
Considering the unpredictable nature of the state’s solar policy(and the opposition to it), one has to wait and see if this relatively attractive tariff will lead to a boom in solar installations in the state.
The tariff order can be downloaded here. A story from The Hindu Businessline can be accessed here.


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2 thoughts on “Tamil Nadu – Solar PV Tariff set at Rs. 7.01/kWh”

  1. There is no clarity w.r.to wheeling charges, cross subsidy. What will be theprice if REC is to be considered. Can anyone advise.

  2. Is it possible that those companies who are already winners of 700MW project, can drop those project. And apply themselves in this new order?

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