Tamil Nadu Exempts 50% Of Rooftop Solar Network Charges For MSMEs

Tamil Nadu To Exempt 50% Of Rooftop Solar Network Charges For MSMEs

The Tamil Nadu Electricity Regulatory Commission (TNERC), in its latest order, approved the directive of the state government to waive off 50 percent of the network charges for rooftop solar consumers in the MSME sector.  

Earlier, the government on November 11 had announced the move during the State Assembly session. The government, in its order, had also said that TANGEDCO had also requested the government to sanction and release the funds needed to compensate for the non-collection by way of subsidy. 

As per the order documents from the TNERC, the approved tariff for rooftop solar network charges stood at Rs 1.523 per unit for the MSME sector. However, as per the new order, the consumers would have to bear only 50 percent of the charge, i.e., Rs 0.765 per unit, whereas the remaining amount will be borne by the state government. 

The government has issued a reduction of solar rooftop network charges, which will be applicable for the period from November 11 of this year to March 31 of next year for a period of 143 days. The calculation mentioned by the TNERC said that for the solar consumers under the LT-IIIB category, the total solar generation stood at 95,61 MUs. The government has planned to disburse the subsidy of around Rs 2.86 crore for 143 days.

Meanwhile, The state commission also approved the government’s plan to waive off-peak hour chargers from such consumers from the industries till the installation of smart meters by TANGEDCO. 

“The Commission, after considering all approves the provisional subsidy of Rs.92.03 crores (Rupees Ninety Two Crore and Three Lakh only) due to Reduction in tariff rate to certain categories of Multi-tenements consumers under LT Tariff ID, Non-collection of peak hour charges (ToD charges) from LT IIIB Industries till the installation of smart meters by TANGEDCO and reduction of Solar Roof Top network charges to 50% for MSME Industries as claimed by the TANGEDCO. The Government of Tamil Nadu may release the aforesaid subsidy as stipulated in section 65 of the Electricity Act, 2003,” the TNERC order said. 

It also said the subsidy approval was provisional and should be reconciled later based on the actuals. “The TANGEDCO shall reconcile the subsidy allowed with the actual consumption and revenue assessed during every quarter and furnish the report within the stipulated period of 60 days,” the order said.