With the State government issuing guidelines on generation-based incentive (GBI) regarding installation of rooftop solar photo-voltaic (SPV) plants, domestic consumers will shortly be able to send their applications online to the Tamil Nadu Energy Development Agency (TEDA), the organisation identified by the government to implement the scheme of solar rooftop capital incentive.

The incentive will be Rs. 20,000 per applicant for a plant of one kilowatt (KW). This will be in addition to 30 per cent subsidy from the Union Ministry of New and Renewable Energy on capital cost. The subsidy from the Union Ministry will work out to be Rs. 30,000. The total cost of one SPV unit comes to Rs. one lakh. In effect, a domestic consumer, chosen under the State government’s scheme, will have to pay Rs. 50,000.

Battery-less SPV

An order issued by the State Energy Department has made it clear that the subsidy will be given to applicants on first-come first-served basis. Only grid-tied battery-less SPV units will be covered under the scheme.

For the time being, the government has sanctioned Rs. 10 crore for the current year. Taking into account the subsidy amount of Rs. 20,000 per KW, this means that 5,000 beneficiaries will be covered initially.

As part of the scheme, the beneficiaries have to purchase the plants through vendors to be empanelled by the TEDA, which will soon float bids in this regard. By December, the work of empanelling the vendors is expected to be completed, an official says, clarifying that this does not mean that the applicants have to wait till then.

A pro-forma application will be hosted on the TEDA website shortly.

In the case of a complex of flats, subject to availability of space on rooftop, applications will be scrutinised even though there is no restriction on sending as many applications as possible from one complex of flats. It will be treated as a combined solar plant, the cost of which has to be borne by each flat owner. Apartments having swimming pools will also be allowed even though some portions of such buildings may be covered under the category of commercial establishments.


All online applicants will have to submit a hard copy of applications, duly signed to the TEDA headquarters in Chennai within three months. Subsequently, the sanction order will be generated. Sanction orders will also be hosted on the website of the TEDA. Intimation about the sanction orders will be made to the applicants through short messaging system (SMS), e-mail or acknowledgement card.

With the installation of a rooftop SPV plant, a domestic consumer stands to save Rs. 9,200 a year. This has been worked out on the premise that one plant generates 1,600 units every year for a consumer getting a bi-monthly bill of over 500 units. The tariff for energy of 501 units and above is Rs. 5.75. Compared to the current level of interest rates offered by banks on fixed deposits, the amount of savings to be achieved by a domestic consumer will be much higher.

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