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Tamil Nadu (TN) Solar Policy 2019 Highlights_07.02.2019

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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.

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Tamil Nadu (TN) Solar Policy 2019 Highlights_07.02.2019

  1. 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. 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.

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