1. Solar PV system - financial assistance and incentives

2. 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

3. Small scale projects – Off grid (upto 100kWp)
30% subsidy from MNRE (Ministry of new and renewable energy) or soft 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

4. 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 ), 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

5. 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

6. 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 ), 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

7. 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.

8. 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

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