TNERC sets new generic tariffs for solar projects

The Tamil Nadu Electricity Regulatory Commission (TNERC) has set a generic tariff of Rs 3.61 per kWh for grid-connected solar power projects for capacity ranging from 1kW to 10 kW. Similarly, a tariff of Rs 3.37 per kWh has been set for 11 kW-150 kW and Rs 3.10 per kWh for 151 kW-999 kW. The ‘Generic Tariff Order for Grid Interactive Solar Photovoltaic (PV) Energy Generating Systems,’ goes into force on October 22, 2021 and will be in effect until March 31, 2023.

Except for initiatives like the Pradhan Mantri Kisan Urja Suraksha Evam Utthan Mahabhiyan (PM-KUSUM), for which the Commission will issue particular orders, the tariffs will apply to grid-connected solar energy systems commissioned within the control period stated in the order. Furthermore, on August 17, 2021, the Commission released a consultative paper seeking stakeholders to comment on three types of metering mechanisms, customer eligibility, and tariff determination.

The tariffs were determined by the Commission taking into account the following factors. First, the Commission established time-of-day rates, which encourage prosumers to build energy storage for own use or to feed into the grid during peak hours. Second, to encourage the growth of solar power in the domestic sector, a network or wheeling charge of 20 per cent will be applicable for domestic consumers of up to 10 kW load and 75 per cent for consumers with a load of more than 10 kW. Third, net metering is available to all residential consumers up to the sanctioned load/contracted demand. Domestic consumers  can also opt for the net feed-in mechanism.