Tamil Nadu Solar Energy Policy 2012 : Seeks to Tap 3,000 MW

With the Tamil Nadu (TN) state reeling under acute power crisis, TN government recently unveiled a solar energy policy under which installation of solar panels in all new government & local body buildings would be made mandatory.

3,000 MW of Power.!

Chief Minister Ms.J. Jayalalithaa announced the new policy, which seeks to tap 3,000 MW of power in the next 3 (three) years through solar energy. The policy hopes to generate 1,000 MW each year till 2015.

Creation of solar energy parks, encouragement to people to install solar panels at house and gradual installation of solar panels in government & local body buildings are some of the salient features of the new policy.

Salient Features ..!

* Street lighting & drinking water distribution would be managed gradually through solar energy in local body & government buildings.

* Big industries & high tension power consumers should use certain percentage of power only through solar energy

* Producers of solar energy equipments would be given encouragement such as net metering (which enables the rooftop solar plant to put in the surplus energy into the grid), exemption from electricity tax & power cut.

* Making Tamil Nadu a frontrunner in the solar power generation.

Captive Power Generation..!

* The TN State Government will mandate 6% solar purchase obligation from January 2014. Initially, till December 2013, it will be 3%. This means HT power consumers including SEZs, industries guaranteed uninterrupted power, IT parks, telecom towers, colleges and residential schools &  buildings of more than 20,000 square meter will have to meet the mandated power requirement from solar power.

* The solar policy also provides for generation based incentives for domestic solar power production through roof top installations. The target will be to set up 50 MW of generation through this scheme.

* Utility scale solar power parks of 1 to 10 MW each will be encouraged to bring in over 1,500 MW of solar power generation capacity. Developers will be selected through the competitive and reverse bidding routes.

* To attract solar power equipment production, preference will be given for investors in this sector for land allocation in industrial estates, tax incentives will be provided and the Government will also encourage integrated generation and manufacturing facilities.

* Net metering will also be introduced in residences & commercial establishments to offset the solar power generated from the electricity consumption that is billed.

* The policy also provides for a range of tax incentives in line with the industrial policy.

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