Tamil Nadu’s New Solar Policy Targets 9 GW of Installed Capacity by 2023

Distributed and rooftop solar will account for 40% of the target


The Tamil Nadu Energy Development Agency (TEDA) has issued the state’s Solar Energy Policy 2019. The policy targets 9 GW of installed solar photovoltaic (PV) capacity in Tamil Nadu by 2023. The new solar policy includes both distributed and utility-scale solar PV generation.

Tamil Nadu Solar Energy Policy 2019 came into effect on February 4, 2019 and will remain in force until replaced by another policy. The policy aims to establish an ecosystem that translates the state’s solar energy vision into enabling policy systems and processes and create a single window system for technical support, funding support, and project clearance.

Key Highlights

  • State targets to install solar capacity of 9 GW by 2023
  • 40 percent of the targeted capacity will come from consumer category solar (distributed generation, rooftop solar, small solar)
  • Utility-scale solar energy gross feed-in will be allowed at all voltage levels. For this, wheeling and other charges will be applicable. No wheeling will be allowed at low tension voltage level.
  • Wheeling will be allowed only during generation. Excess energy fed into the grid will be treated as infirm power under sale to distribution companies (DISCOMs) at a tariff determined by Tamil Nadu Electricity Regulatory Commission (TNERC)
  • DISCOMs will install bi-directional energy meters to record import and export of energy for consumers utilizing solar generation systems. Prosumers can choose to get one-time payment of net energy exported at the end of 12-month settlement period
  • Solar energy net feed-in will be made available to all prosumers even at low tension voltage level
  • Consumer category solar will have electricity tax exemption of two years from the issue of this order

According to Mercom India’s Solar Project TrackerTamil Nadu has an installed capacity of approximately 2 GW solar PV. The state has 1.6 GW of solar PV projects under development.