The Sate of Tamil Nadu has recently released new solar policy with highly ambitious target of 9GW by 2023. Gensol has highlighted key areas of focus & inferences with respect to incentives, energy accounting, wheeling of power etc.

1. Tamil Nadu Solar Policy 2019
Sl.No Clause/Head Interpretation
1 Policy Tamil Nadu Solar Policy 2019
2 Policy Effective Date 04-02-2019
3 Operative Period
 Policy will be applicable and valid till further Amendments and modification proposed.
However, government will review the implementation of policy on an annual basis to evaluate
actual result.
4 Vision and Target
 Solar Energy target of 9000 MW from both ground mounted and rooftop project by 2023.
Out of which 40% from rooftop projects.
The energy targets are 4000 MW higher, compared to draft policy
5 Category System
 Utility Category System- Objective is to sale of power to distribution licensee/third
party/Self consumption at a remote location i.e. captive consumption
 Consumer Category System- Objective is self-consumption of solar energy and excess
feed to grid.
6 Gross Feed & Net Feed
 For Utility category gross feed in will be permitted at all voltage level subject to applicable
wheeling and other applicable charges.
 For consumer category net feed in will be available for all LT electricity consumer
categories
Gensol Engineering Pvt. Ltd
Solar Policy Review 2019: Tamil Nadu

2. 7 Settlement Period
 For consumer category: the net credited/surplus unit settlement will be done once in 12
month/ financial year.
8 Wheeling of Power
 Wheeling facility is not permitted at LT voltage level.
 For HT consumer open access regulation of TNERC will be applicable.
 Wheeling of Power is allowed only above 1 MW capacity and the wheeling facility is only
allowed during generation hours
9 Energy Accounting
 Energy accounting will be done on slot or block basis. Excess unconsumed generation
considered as infirm power under sale of Discom category only. The excess energy will be
paid at a tariff determined by TNERC.
However, the block/ slot time intervals are not defined. Generally, the accounting is done in
15 minute time block
10
Business Model for Solar
Project
 Upfront Ownership: which is basically a Capex model in which, the developer puts
upfront capital cost and takes ownership.
 Deferred Ownership: it is basically a RESCO business model in which the owner makes
system performance based payment to the developer.
11 Incentives
 Consumer Category solar energy will be exempted from electricity tax for two year from
the date of policy.
 Single window process for all department approval, with time limits.
Incentives are limited to major extent as exemption of major charges like electricity tax, grid
connectivity, open access, wheeling, and banking and cross-subsidy charges are proposed in
the draft policy.
12 Grid Connectivity
 Evacuation of power shall be allowed at all voltage level.
 For consumer category system capacity is restricted to 100% of sanctioned load.