Tamil Nadu to Empanel Vendors for 5 MW of Residential Rooftop Solar Projects

September 18, 2020


The Tamil Nadu Energy Development Agency (TEDA) has issued a tender to empanel vendors for 5 MW of grid-connected rooftop solar projects for domestic customers in the state. The projects come under the second phase of the grid-connected rooftop solar program of the Ministry of New and Renewable Energy (MNRE).

The scope of work included the design, supply, installation, testing, and commissioning of the projects along with five years of comprehensive maintenance services. The tender noted that bidders were only allowed to use domestically manufactured solar cells and modules for the projects.

Interested bidders are expected to submit an earnest money deposit (EMD) of ₹500,000 (~$6,805). The last date for the submission of bids is October 9, 2020. Successful bidders are expected to pay a non-refundable empanelment fee of ₹50,000 (~$680) with goods and services taxes (GST).

To be eligible to take part in the competitive bidding process, applicants must have experience installing at least 250 kW of cumulative grid-connected solar systems across the country in the last three financial years. Bidders are also expected to have had a minimum annual turnover of at least ₹7.5 million (~$102,075) in the last three financial years.

The tender noted that subsidies under the MNRE rooftop program for the projects would be disbursed upon receipt of the project completion report as per the Ministry’s format. The report will be inspected by the Tamil Nadu Generation and Distribution Company (TANGEDCO) and TEDA officials in the presence of the beneficiary.

Under the program, projects up to 3 kW will receive a 40% subsidy in terms of benchmark cost or the cost arrived at through the tender, whichever is lower. Projects between 3 kW and 10 kW will receive a 40% subsidy for the first 3 kW and 20% for the remainder. Similarly, for systems above 10 kW, a subsidy of 40% for the first 3 kW and 20% for the next 7 kW would apply. No subsidy beyond 10 kW capacity will be provided, the tender added. Group housing societies and residential welfare associations for common facilities up to 500 kW will receive a 20% subsidy under the program.

Previously, Mercom India Research’s Q1 2020 India Solar Market Update showed that Tamil Nadu ranked fifth in the list of top states in the country for rooftop solar. The report said that half of the state’s installed power capacity came from renewable sources. The share of solar is 12%. In early 2019, the state announced its Solar Energy Policy 2019, targeting 9 GW of solar installations by 2023 between utility-scale and distributed generation projects.

In March, the Tamil Nadu Energy Development Agency invited bids to empanel vendors for renewable energy projects and energy-efficient appliances in the state.


Nithin Thomas Prasad