Tamil Nadu Solar Energy Policy 2012 - Full Text - India Renewable Energy Consulting – Solar, Biomass, Wind, Cleantech
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I have gone through the entire text of the Tamil Nadu Solar Energy Policy released earlier today and providing the policy document in detail. I have deliberately left out some of the sections as they are not specific to the policy but general information on technology, global installations etc.

(Excerpts of the Consultation Meeting held for bidding up to 1000 MW over here)

Hope you find this document useful – Narasimhan

Tamil Nadu Solar Energy Policy 2012

Government of Tamil Nadu

Tamil Nadu Solar Energy Policy


1. Preamble

2. Vision of the Government of Tamil Nadu

3. Title and Enforcement

4. Objectives

5. Target for promotion of solar energy in the state

6. Shortages and constraints in fossil fuel

7. Renewable energy installations in Tamil Nadu

8. Experience of Solar Energy in India

8.1  Global Solar Scenario

9. Technology Cost

10. Advantages of Solar Power

11. Solar Technologies

11.1 Solar Photovoltaic

11.2 Concentrated Solar Power (CSP) based Solar Thermal Power Plant

11.2.1 Parabolic Trough Systems

11.2.2 Power Tower Systems

11.2.3 Parabolic Dish Systems

11.2.4 Thermal Storage Systems

12. Development of Solar Power in Tamil Nadu

13. Solar Purchase Obligation (SPO)

14. Mechanism to Generate 3000 MW by 2015

15. Promoting Solar Rooftop Systems

16. Promotion of Solar Water Heating Systems

17. Development of Solar Parks

18. Procurement Policy of Solar Power

19. Single Window Agency (TEDA)

20. Solar Manufacturing Facilities

21. Establishment of Solar Power Plants in Industrial Estates

22. Policy Initiatives

23. Plant and Machinery

24. Formation of Empowered Committee

25. Research & Development and Capacity Building


Solar Energy policy 2012

Government of Tamil Nadu

Energy Department

 ==I am leaving out the general knowledge stuff and going straight to stuff that matters. So, some of the sections present in the Policy Document will not be here.==

2.     Vision of the Government of Tamil Nadu

The Honourable Chief Minister Selvi J Jayalalitha has a vision of developing Tamil Nadu as a world leader in Solar Energy by establishing 3000 MW  by 2015.

Tamil Nadu is committed to leading the country by generating 3000 MW of Solar Power by 2015 through a policy conducive to promoting solar energy in the state. This Government headed by the Hon’ble Chief Minister Selvi J Jayalalitha, intends to make Solar Energy a people’s movement just as it did earlier in the case of Rain Water Harvestig.

3.     Title and Enforcement

This policy will be known as the “Tamil Nadu Solar Energy Policy – 2012”. The Government of Tamil Nadu will undertake a review of this Policy as and when required in view of any technological breakthrough or any changes taking place in the policy at the National level.

4.     Objectives

  • To achieve energy security
  • To reduce carbon emissions
  • To project Tamil Nadu as a Solar Hub
  • To generate 3000 MW of Solar Energy by 2015
  • To achieve grid parity by 2015
  • To encourage indigenous solar manufacturing facilities in the State
  • To promote Research and Development in the solar energy sector and hybrid systems
  • To create skilled man power and employment in a new industry
  • Target for promotion of Solar Energy in the State
  • It is proposed to generate 3000 MW of Solar Energy by 2015

==We are jumping to Point 12, the rest of stuff in the middle is general knowledge stuff, not relevant to the policy==

12. Development of Solar Power in Tamil Nadu

Phase (2013-2015)                Target (MW)

2013                                          1000

2014                                          1000

2015                                          1000

Total (by 2015)                        3000

With average solar incidence of 5.5-6 kWh/m2/day, Tamil Nadu is amongst the states with the highest solar insolation in India. To retain its leadership position, Tamil Nadu will promote setting up solar power projects to the extent of 3000 MW over a period of 3 years, as furnished above.

Tamil Nadu will actively promote the solar energy sector by prescribing a certain percentage of electricity consumption through solar energy as mandatory. This will be progressively increased.

13. Solar Purchase Obligation (SPO)

The State will mandate 6% SPO (starting with 3% till December 2013 and 6% from January 2014) for the following category of consumers:

a.       HT Consumers (HT Tariff I to V)

This category will cover all HT consumers including:

  • Special Economic Zones (SEZs)
  • Industries guaranteed with 24/7 power supply
  • IT Parks, Telecom Towers
  • All Colleges & Residential Schools
  • Buildings with a built up area of 20,000 sq.m or more

b.      LT Commercial (LT Tariff V)

The following categories of consumers will be exempted from SPO:

  • Domestic consumers
  • Huts
  • Cottage and Tiny Industries
  • Powerlooms
  • LT Industrial consumers
  • Agricultural consumers

The SPO will be administered by TANGEDCO.

The above obligated consumers may fulfill their SPO by

  • Generating captive Solar Power in Tamil Nadu equivalent to or more than their SPO
  • Buying equivalent to or more than their SPO from other third party developers of Solar Power projects in Tamil Nadu
  • Buying RECs generated by Solar Power projects in Tamil Nadu equivalent to or more than their SPO
  • Purchasing power from TANGEDCO at Solar Tariff
  • Consumers desirous of availing SPO exemption by captive solar generation shall necessarily install separate meters to measure captive generation

This mechanism will require generation of 1000 MW by 2015

14. Mechanism to generate 3000 MW by 2015

The 3000 MW of Solar Power will be achieved through Utility Scale Projects, Rooftops, and under REC mechanism as follows

Utility Scale (MW) Solar Roof Tops (MW) REC (MW) Total (MW)
(a) (b) (c) a + b +c
2013 750 100 150 1000
2014 550 125 325 1000
2015 125 125 675 1000
Total 1500 350 1150  3000


In utility scale out of 1500 MW, 1000 MW will be funded through SPO and balance 500 MW through Generation Based Incentive (GBI) provided by the Government.

15. Promoting Solar Roof Top Systems

The Government of Tamil Nadu will promote Solar Rooftops through the following measures

i. Domestic Rooftop GBI

All domestic consumers will be encouraged to put up roof-top solar installations. A generation based incentive (GBI) of Rs 2 per unit for first two years, Re 1 per unit foe next two years, and Re 0.5 per unit for subsequent 2 years will be provided for all solar or solar-wind hybrid rooftops being installed before 31 March, 2014. A capacity addition of 50 MW is targeted under this scheme.

Consumers desirous of availing GBI shall necessarily install separate meters to measure rooftop generation.

ii. Promoting Rooftops in Government

  1. Solar Home Lighting is being installed in 3 lakh houses under the Chief Minister’s Sola Powered Green House Scheme (CMSPGHS) and will be completed by 2015-16.
  2. Energisation of Street Lights with solar energy. The State will be energizing 1 lakh street lights through solar energy by 2015-2016
  3. All new Government/Local Body buildings shall necessarily install solar rooftops.
  4. Existing Government/Local Body buildings will be provided with solar rooftops in a phased manner
  5. All Street Lights and Water Supply installations in local bodies will be energized through solar power in a phased manner

16. Promotion of Solar Water Heating Systems

i.                    Public Buildings

The Government of Tamil Nadu has issued amendments to the Building Rules through the following Government Orders, making the use of solar water heating systems mandatory for all designated new Houses/buildings/Marriage halls/hotels etc.

  • G.O. Ms. No. 112, Municipal Administration and Water Supply (MA1 Dept. dated 16.8. 2002
  • G.O. Ms. No. 277, Housing and Urban Development (UD 1) Dept. dated 14.11.2002

The State will promote Solar Water Heating systems by suitably amending the relevant Acts of Municipalities/Corporations

ii.                  Industries

Installation of Solar water heating systems will be made mandatory for industries having hot water boiler/steam boiler using fossil fuel

17. Development of Solar Parks

tility scale solar parks may comprise 250 MW in sizes of 1 to 5 MW, 600 MW in sizes of 5 to 10 MW and 650 MW of sizes above 10 MW. Solar Power projects will be developed through competitive/reverse bidding. Solar Parks with a capacity of about 50 MW will be targeted in 24 districts

18. Procurement Policy of Solar Power

18.1 Tariff based competitive bidding

As solar power is expensive compared to conventional/other renewable energy, a cost effective methodology needs to be evolved to promote solar power generation systems.

Tamil Nadu will select developers through Tariff based reverse/competitive bidding. The recent experiences of Germany and Spain also prove that competitive bidding is the best way for adoption by Governments. The Government of India through NTPC Vidyut Vyapar Nigam (NVVN) also follows the competitive bidding process.

Investments through Joint Ventures by State Public Sector Undertakings will also be encouraged at competitive tariffs

18.2 Renewable Energy Certificate and Carbon Credits

Renewable Energy Ceritificate (REC) mechanism promotes trading of solar power to meet solar purchase obligations (SPO). All the obligated entities committed to meeting SPO will necessarily will have to wither produce solar power (captive) or buy solar power from TANGEDCO or purchase solar RE certificates for an equivalent  quantity through the Power Exchange from the Promoters who have tradable RE Certificates.

Under this mechanism Solar power developers are eligible to possess one tradable RE Certificate per every 1000 units of energy (1 MWh) wheeled to the Distribution utility or to any other licensee.

All solar power producers are eligible to avail of the Clean Development Mechanism (CDM) benefits to enhance the viability of the projects.

19 Single Window Agency (TEDA)

Various statutory clearances that are essential for the development and commissioning of Solar Energy Projects will be handled by TEDA in co-ordination with the concerned departments/agencies. Guaranteed single window clearance will be provided through TEDA in 30 days so that the plants can be commissioned in less than 12 months

20. Solar Manufacturing Facilities

The Government of Tamil Nadu will promote integrated solar generation and manufacturing parks which will house the entire ecosystem for solar manufacturing including wafer, cell and module making, and Balance of System (BoS) component manufacturing. Local solar manufacturing industry (around 1000 MW/annum) will result in substantial direct and indirect job creation in the supporting sectors. Manufacturing of Solar Thermal components will also be encouraged.

The Government will encourage indigenous manufacturing of solar panels and other related equipment.

20.1 Incentives to Manufacturers

Appropriate tax incentives as per the Tamil Nadu Industrial Policy will be provided to attract investors from India and abroad

Tamil Nadu will actively support the growth of local manufacturing of solar components and ancillaries. A solar manufacturing ecosystem will be created that will include solar research centres, test facilities, resource assessment facilities, educational institutions, training centres, etc.

20.2 Global industry leaders in solar value chain

Global majors will be invited to invest in the creation of manufacturing facilities in Tamil Nadu, with appropriate incentives as detailed above. Tamil Nadu will position itself as the regional hub for integrated solar manufacturing and technology development.

20.3 Exclusive Solar Manufacturing Parks

Lands will be identified for development of exclusive solar manufacturing parks. The State will promote setting up of solar manufacturing industries in these exclusive solar manufacturing parks to be established in the State.

20.4 Requirements for Poly Silicon Manufacturing

A Poly Silicon capacity of 10,000 MT would be required to yield silicon wafers sufficient to produce 1000 MW.

20.5 Preference in Industrial Parks

Preference will be given for establishing Solar manufacturing industries in the SEZs/Industrial estates / Parks viz., SIPCOT, SIDCO and similar Government organizations

21. Establishment of Solar Power Plants in Industrial Estates

In order to reduce the Transmission & Distribution losses, Aggregate Technical & Commercial (AT&C) losses and other infrastructure expenditure, Solar Power Plants will be set up in all industrial estates subject to availability of land at reasonable cost

22. Policy Initiatives

22.1 Net Metering

Net metering will be allowed (at multiple voltage levels) to promote rooftop penetration

Net metering facility will be extended to Solar power systems installed in commercial establishments and individual homes connected to the electrical grid to feed excess power back to the grid with “power credits” accruing to the Photovoltaic energy producer.

Projects to evacuate power at suitable voltages as suggested below

Solar PV System Size Grid Connected
<10 kWp 240 V
10 kWp to < 15 kWp 240 V / 415 V
15 kWp to < 50 kWp 415 V
50     Wp to < 100 kWp 415 V
>100 kWp 11 KV

22.2 Wheeling and Banking Charges

The wheeling and banking charges for wheeling of power generated from the Solar Power Projects, to the desired locations for captive use/third party sale within the State will be as per the orders of the Tamil Nadu Electricity Regulatory Commission

22.3 Exemption from Payment of Electricity Tax

Exemption from payment of electricity tax to the extent of 100% on electricity generated from Solar Power projects used for self-consumption/sale to utility will be allowed for 5 years

22.4 Tax Concessions

Tax concessions as per the Tamil Nadu Industrial Policy will be provided

22.5 Exemption from Demand Cut

Exemption from demand cut to the extent of 100% of the installed capacity assigned for captive use purpose will be allowed.

22.6 Facilitation by the Nodal Agency

TEDA shall endeavour to facilitate the development of the projects in the following areas:

  • All statutory clearances from Govt. Departments / Agencies
  • Evacuation approval from State Transmission Utility
  • Connectivity to the substation of State Transmission Utility
  • Common clearances from TNPCB etc., whenever feasible for providing plug and play facility to Solar Developers

23. Plant and Machinery

Only new plant and machinery are encouraged as per international standards. Such machineries/components will be approved either by the Ministry of New and Renewable Energy, Government of India, or by approved test centers in India/International test houses. Only plants/machineries which give Plant Load Factor (PLF) as per the latest standards will be permitted.

24. Formation of Empowered Committee

An Empowered Committee under the Chairmanship of the Honourable Minister of Electricity with the following members will accord project clearances for the establishment of solar power projects to be bid out in the State:

  • Chief Secretary
  • Finance Secretary
  • Energy Secretary
  • CMD TEDA – Member Secretary
  • One Technical Officer from TANGEDCO

25. Research and Development and Capacity Building

Research and Development on solar technologies / solar thermal storage systems, testing facilities towards the development of solar technologies will be encouraged. Technology Demonstrations on innovative projects in association with reputed institutions will also be encouraged.

To effectively implement this policy and to achieve the intended objectives, the Tamil Nadu Energy Development Agency (TEDA) will promote capacity building in the area of Solar Energy.

==End of Policy Text==

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