Solar PV system - financial assistance and incentives

Objective Small scale projects – upto 100kWp Off-grid Grid interactive Medium scale projects – 101kWp to 999kWp Large scale projects - >= 1MWp Mandates in Solar Purchase obligation

Small scale projects – Off grid (upto 100kWp) 30% subsidy from MNRE (Ministry of new and renewable energy) or soft loan @5% interest through IREDA (Indian Renewable energy development agency) Tamilnadu state government subsidy of Rs.20,000 per kWp. Generation based Incentives by TN government through TEDA Rs. 2/unit for first two years (1&2year) Rs. 1/unit for next two years (3&4 year) Rs. 0.50/unit for next two years (5&6 year) Subsidy can be availed subject to the following conditions The Panel used should be indigenous and MNRE empanelled product The integrator /service provider should be MNRE empanelled organisation System should be installed as per the guidelines of MNRE

Small scale projects – Grid interactive (upto 100kWp) Referred to as 'Rooftop PV & Small Solar Power Generation Programme' (RPSSGP) Solar power projects to be connected to distribution network at voltage levels below 33 kV. Captive consumption of Solar Power generated also considered(to be measured on AC side of the inverter). The GBI (Generation based Incentive) shall be equal to the difference between the tariff determined by the Central Electricity Regulatory Commission (CERC) and the Base Rate, which will be Rs 5.50 per kWh (for Financial year 2010-11), which shall be escalated by 3% every year. GBI determined for a project shall remain constant for entire duration of 25 years CERC rate Rs.7.87 /unit for Solar PV

Medium scale projects – off-grid (101kWp to 999kWp) Subsidy cannot be availed Generation based incentives from TN government can be availed. If separate switchgears and meters are used, subsidy can be availed for 100kWp Subsidy can be availed subject to the following conditions The Panel used should be indigenous and MNRE empanelled product The integrator /service provider should be MNRE empanelled organisation System should be installed as per the guidelines of MNRE

Medium scale projects – grid interactive (101kWp to 999kWp) Power can be sold as per PPA of SNA REC (Renewable energy certificate)can be availed for 1MWhr generation and transmission to the nodal agency distribution grid Generation based incentive as per RPSSGP scheme can be availed. The GBI (Generation based Incentive) shall be equal to the difference between the tariff determined by the Central Electricity Regulatory Commission (CERC) and the Base Rate, which will be Rs 5.50 per kWh (for Financial year 2010-11), which shall be escalated by 3% every year. GBI determined for a project shall remain constant for entire duration of 25 years CERC rate Rs.7.87 /unit for Solar PV

Large scale projects – Grid interactive (<= 1MWp) Power can be sold as per PPA of SNA REC can be availed for 1MWhr generation and transmission to the nodal agency distribution grid Generation based incentive as per NVVN scheme can be availed. NTPC’s Vidyut Vyapar Nigam Ltd is designated as nodal agency to procure solar power.

Solar Purchase obligation Solar Purchase obligations (SPO) 3% solar till Dec-13 and 6% of the consumption through solar from 2014 Generate through captive power plant Or Purchase from any third party having Solar PP SPO is applicable to Special Economic zone (SEZ) Industries guaranteed with 24/7 power supply IT parks, Telecom Towers All colleges and Residential schools Buildings with a built up area of 20,000 sq.m or more

Categories exempted from SPO Domestic consumers Huts Cottage and Tiny industries Power looms LT industrial consumers Agricultural consumers