Tamil Nadu announces a draft solar energy policy 2018
TEDA has recently announced the draft solar energy policy 2018. Earlier the state had Tamil Nadu policy 2012 (one of the first solar energy policy in the country.) The state has announced for a vision Tamil Nadu 2030 wherein the solar energy target for the state is of 5,000 MW. Under the targets set by MNRE, TN aims for an installed capacity of 8,884 MW of which (40%) that is 3,553 MW is to come from consumer scale rooftop solar system. Tamil Nadu solar energy Policy 2018 intends to create a framework that enables an accelerated development of solar energy in the state. It also intends to facilitate open access to the public electricity grid of the state and create opportunities for a grid-connected distributed generation of solar power in order to reduce the dependence on fossil fuels.
Key points of the draft policy as below:
- If a DISCOM fails to comply with the RPO mandates, penalties specified by TNERC for such non‐compliance shall be strictly enforced.
- Solar grid feed-in mechanisms included in the policy are:
| Solar energy gross feed-in (utility scale) | The solar energy is fed into the grid and sold to the distribution licensee or a third party under the open access facility. In the case of distribution licensees, the solar energy fed into the grid will be purchased by the distribution licensee at the prevailing solar energy tariff as determined by the TNERC or a tariff determined by a bidding process |
| Solar energy wheeling (utility scale) | The solar energy is fed into the grid and credited in one or more service connections of the solar energy producer. Solar energy wheeling will be applicable to all electricity consumer categories and tariffs and for electricity service connections at any voltage level |
| Solar energy gross feed-in (consumer scale) | The solar energy is fed into the grid and sold to the distribution licensee. An extra energy meter will be installed that records the consumption of energy at the premises to record the energy fed into the grid by the distribution licensee. The energy will be sold to the distribution licensee at the tariff determined under this mechanism can also be sold to a third-party under Open Access. |
| Solar energy net feed-in | The solar energy is used for self-consumption with the surplus, if any, being exported to the grid. A bidirectional service connection energy meter will be installed by the distribution licensee to record the imported and exported energy. The imported energy is debited at the applicable consumer tariff while the exported energy is credited on the basis of a consumer solar energy tariff to be determined by TNERC. |
| Solar energy group net-metering: | To encourage solar plants on rooftops of buildings that cannot consume all of the energy generated locally, there shall be Group Net Metering, whereby surplus energy exported to the grid from a solar plant in excess of 100 percent of imported energy at the location of the solar plant can be adjusted in any other (one or more) electricity service connection(s) of the consumer within the State of Tamil Nadu. |
| Solar energy virtual net feed-in | To give access to the solar net feed-in facility for consumers who do not have a suitable roof for installing a solar system (e.g. residential consumers who live in apartments, consumers with shaded rooftops) there will be the facility of Virtual Net Feed-In. In Virtual Net Feed-In consumers can be beneficial owners of a part of a collectively owned solar system. All energy produced by a collectively owned solar system will be fed into the grid through an energy meter and the exported energy as recorded by that the meter will be pro rata credited in the electricity bill of each participating consumer on the basis of beneficial ownership. |
Various solar project implementing models:
- Self-owned: Solar PV system is owned and operated by the building owner/user
- RESCO (Renewable Energy Service Company) owned: The Solar PV system is owned and
operated by a RESCO. The consumer pays the RESCO for the solar generation and makes
use of the solar energy gross feed-in or net feed-in mechanism. - Lease: The consumer leases the solar PV system from a leasing company and makes use of the
solar energy gross feed-in or net feed-in mechanism.
Any person or entity willing to put a solar project needs to abide by the building by-laws and Energy Conservation Building Code Compliance (ECBC). All the public buildings are mandated to meet 30% of their energy requirement from solar energy by 2022.
Solar energy imported by the distribution licensee from non-obligated solar energy producers (including electricity consumers with gross or net feed-in facilities) can be claimed by the distribution licensee towards the fulfillment of their renewable energy purchase obligations (RPO).
The Government of Tamil Nadu wishes to promote the manufacturing of solar energy components including solar cells, inverters, mounting structures and batteries in the state. The land will be identified for the development of solar manufacturing. A single window process for all departmental approvals, including a set time limit for each approval, is expected to be designed.
An incentive program will be designed to promote the co-utilization of land for solar energy projects, crop cultivation, and rainwater harvesting.
The policy is open for suggestions and comments to individuals, organizations, and institutions till 15th October 2018.