Feed-in tariff extension to HT customers to spur TN’s rooftop solar capacity

By: |
November 10, 2021 2:15 AM

Feed-in tariff allows rooftop customers to sell surplus power produced back to the grid at a predetermined price that is comparatively lower than the prevailing solar retail tariffs for industrial and commercial consumers.

In the last one decade, rooftop solar segment has lagged in comparison to ground mounted solar and wind energy segments in terms of new capacities added.In the last one decade, rooftop solar segment has lagged in comparison to ground mounted solar and wind energy segments in terms of new capacities added.

After years of neglect to the solar rooftop segment, Tamil Nadu government’s provision of feed-in tariff to high tensile (HT) commercial and industrial consumers, as against net metering, will help increase the rooftop capacity by over five times in the next couple of years, according to industry experts.

Feed-in tariff allows rooftop customers to sell surplus power produced back to the grid at a predetermined price that is comparatively lower than the prevailing solar retail tariffs for industrial and commercial consumers. In contrast, net metering allows customers to sell surplus power at retail tariffs. Experts consider compensating consumers at retail tariff for surplus power as one of the biggest reasons why discoms failed to sustain or offer net metering services.

In the last one decade, rooftop solar segment has lagged in comparison to ground mounted solar and wind energy segments in terms of new capacities added.

Tamil Nadu, in a latest notification that came into effect on October 22, 2021, has offered net metering to domestic consumers with up to 150-kw capacity. The HT consumers, generally commercial and industrial clients having capacities above 150kw to 999kw, can use the feed-in tariff facility, where they can sell surplus power at a predetermined tariff of Rs 3.41 per kwh for the next three years. The pre-determined tariff may change according to SERC notification from time to time.

Puneet Goyal, founder of SunAlpha Energy, said the option to sell surplus power will help companies set up entire contracted capacities, that was not the case earlier. Developers’ inability to sell the surplus power led to setting up of just part capacities in the past. “The latest provision will help rooftop solar capacities increase five-fold in the next couple of years despite discoms pricing a network charge of 0.83 paise/kwh on the total capacity,” said Goyal. “We hope that the implementation of the policy with the relevant government stakeholders is speedy so that consumers benefit as early as possible,” Goyal added.

Vinay Rustagi, founder of Bridge to India, a consultancy firm dedicated to renewable sector, said the feed-in tariff to commercial and industrial consumers in Tamil Nadu is a right step in balancing the needs of the discom and that of consumers. “It is going to be an inevitable step for other discoms offering net metering as they will find it difficult to compensate consumers at retail price for the expenses they bear on transmission and distribution infrastructure,” Rustagi said.

“The net billing or feed-in tariff arrangement also provides much needed clarity to consumers and should therefore boost rooftop solar prospects in the state,” Rustagi said.

Shreyas Gowda, VP at Oorjan Cleantech, said, “We are planning to resume new-client on-boarding in Tamil Nadu immediately. Levying net-work charges on solar units for commercial and industrial consumers seems rational while we are awaiting transparency in policy implementation as early as possible.”

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Reliance Jio writes to Trai over Vodafone Idea’s new tariff plans
2Honor 60 Pro, Honor 60 launched with curved OLED screens, 108MP cameras and 66W fast charging: Details
3WhatsApp Windows app gets new features with first beta update: Details