Whereas the central authorities and most states in India want to promote, even obligate, the usage of rooftop solar energy tasks, one state is seeking to scale back tariffs for rooftop solar energy techniques and even impose tax on income generated from sale of the electrical energy generated.
The facility utility of the Indian state of Tamil Nadu has approached the state’s electrical energy regulators asking it to cut back the tariff provided to rooftop solar energy techniques for customers and impose an extra tax on the income. In keeping with media stories, Tamil Nadu Era and Distribution Firm (TANGEDCO) has proposed to repair the tariff of electrical energy generated from rooftop solar energy techniques at 50% of the bottom tariff provided to utility-scale solar energy tasks within the state.
A number of different circumstances have additionally been proposed by the utility. It proposes that customers be allowed to put in rooftop solar energy techniques as much as solely 50% of their contracted demand. Maybe one of the vital surprising proposal is introduction of an extra tax on income from the ability generated by these techniques.
At current, there isn’t any cap on the scale of rooftop system that may be put in by a shopper. The electrical energy generated by the system is subtracted from the electrical energy consumed from the grid and the patron pays for the online electrical energy consumption. By lowering the tariff relevant to electrical energy generated from rooftop techniques, the utility would successfully scale back the era, thus growing the ability invoice for customers.
The utility plans to repair the tariff of rooftop techniques to half of the tariff provided to solar energy corporations within the states. Whereas the media stories are usually not clear on the precise determine, the tariff may very well be decrease than Rs 2.00/kWh (3.1¢/kWh) as 1.5 gigawatts capability was lately auctioned to builders at Rs 3.47/kWh (5.4¢/kWh).
Final month, TANGEDCO acquired large response to the tender with challenge builders prepared to arrange 2.67 gigawatts capability towards the provided 1.5 gigawatts capability. The bids submitted by the taking part corporations assorted from Rs 3.47/kWh (5.4¢/kWh) to Rs 4.00/kWh (6.2¢/kWh), the utmost allowed bid.
The principle purpose behind this transfer is the poor monetary well being of the utility. It’s know to delay funds to wind and solar energy builders regardless of having long-term energy buy agreements with them. Specialists are additionally baffled by this proposal as a result of TANGEDCO loses 19-25% of the electrical energy whereas supplying it to finish customers. Rooftop solar energy techniques would imply near-zero losses of electrical energy as the purpose of era and consumption is similar.
Whereas the central authorities and most states in India want to promote, even obligate, the usage of rooftop solar energy tasks, one state is seeking to scale back tariffs for rooftop solar energy techniques and even impose tax on income generated from sale of the electrical energy generated.
The facility utility of the Indian state of Tamil Nadu has approached the state’s electrical energy regulators asking it to cut back the tariff provided to rooftop solar energy techniques for customers and impose an extra tax on the income. In keeping with media stories, Tamil Nadu Era and Distribution Firm (TANGEDCO) has proposed to repair the tariff of electrical energy generated from rooftop solar energy techniques at 50% of the bottom tariff provided to utility-scale solar energy tasks within the state.
A number of different circumstances have additionally been proposed by the utility. It proposes that customers be allowed to put in rooftop solar energy techniques as much as solely 50% of their contracted demand. Maybe one of the vital surprising proposal is introduction of an extra tax on income from the ability generated by these techniques.
At current, there isn’t any cap on the scale of rooftop system that may be put in by a shopper. The electrical energy generated by the system is subtracted from the electrical energy consumed from the grid and the patron pays for the online electrical energy consumption. By lowering the tariff relevant to electrical energy generated from rooftop techniques, the utility would successfully scale back the era, thus growing the ability invoice for customers.
The utility plans to repair the tariff of rooftop techniques to half of the tariff provided to solar energy corporations within the states. Whereas the media stories are usually not clear on the precise determine, the tariff may very well be decrease than Rs 2.00/kWh (3.1¢/kWh) as 1.5 gigawatts capability was lately auctioned to builders at Rs 3.47/kWh (5.4¢/kWh).
Final month, TANGEDCO acquired large response to the tender with challenge builders prepared to arrange 2.67 gigawatts capability towards the provided 1.5 gigawatts capability. The bids submitted by the taking part corporations assorted from Rs 3.47/kWh (5.4¢/kWh) to Rs 4.00/kWh (6.2¢/kWh), the utmost allowed bid.
The principle purpose behind this transfer is the poor monetary well being of the utility. It’s know to delay funds to wind and solar energy builders regardless of having long-term energy buy agreements with them. Specialists are additionally baffled by this proposal as a result of TANGEDCO loses 19-25% of the electrical energy whereas supplying it to finish customers. Rooftop solar energy techniques would imply near-zero losses of electrical energy as the purpose of era and consumption is similar.
