Resentment Among TN MSMEs Against Additional Rooftop Solar Charges

Rooftop solar consumers across Tamil Nadu are now miffed with the additional charges levied by the state unlike many other Indian states which are promoting rooftop solar. The state agencies are now levying network or wheeling charges from the prosumers in the state.

In a recent development, several Micro, Small, and Medium Enterprises (MSME) associations have approached the state government to reduce these excessive charges, arguing that they undermine the benefits of adopting solar power.

According to the MSME associations, these surcharges should only apply to solar power generators who export surplus solar power and make a profit. They contend that regular rooftop solar consumers should not bear this financial burden. The MSME units argue that such actions by state agencies are disincentivizing rooftop solar adoption in Tamil Nadu.

These industries typically consume all the solar energy generated from their rooftop systems and rarely export power to the grid. However, the Tamil Nadu Energy Board (TNEB) is now charging ₹1.05 per unit for High Tension connections on all energy generated by rooftop solar consumers, regardless of whether they export power. Recently, the Tamil Nadu Electricity Consumer Association, Tamil Nadu Association of Cottage and Enterprises, and others have voiced objections to this policy.

MSME units are also grappling with higher energy costs, which are affecting their businesses. Additionally, they are frustrated by the fact that state agencies do not allow them to carry forward the benefits of rooftop solar generation, requiring them to utilize the benefits within the same month.

Examples from Other States

Many states are actively encouraging the growth of rooftop solar through supportive measures. For example, Gujarat, a leader in rooftop solar adoption, has introduced special provisions in its industrial policies to promote solar growth. Gujarat’s Industrial Policy emphasizes increased returns from rooftop solar systems and extended power cycles. The state even allows MSME consumers to install solar capacities exceeding 100% of their contracted demand. These pro-solar policies have positioned Gujarat as a leader in rooftop solar adoption in India.

According to a report by Bridge to India, the majority of rooftop solar clients in India belong to the Commercial & Industrial (C&I) segment. India has around 63 million MSMEs, accounting for approximately 30% of the country’s industrial energy demand.