Tamil Nadu launched new Comprehensive Tariff Order on Solar Power

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[ezcol_1half]Tamil Nadu Government has released its “Comprehensive Tariff Order on Solar Power” on 12th September 2014. The Order is in force from the date of its issue and its control period 2015. The order is applicable for purchase of solar power by distribution licensee from the solar power generators. According to this order the Tariff is for Solar PV is 7.01 Rs/kWh and for solar Thermal tariff is 11.03 Rs/ kWh.

For determining the tariff of solar power there were various methodologies discussed in the tariff order, like Project specific or generalized tariff, Single part or two part tariff, Average or levelised tariff, among them the final methodology used in the order is generalized cost plus single part levelised tariff taking into account the AD benefit.

The open access charges and other terms and conditions specified in this Order shall be applicable to all the Solar energy generators, irrespective of their date of commissioning. There are both options available for the solar power generation i.e. Solar PV technology and Solar Thermal Technology, a Solar Power Developers can choose any of them.

According to the tariff order the capital cost of solar PV and solar thermal has taken as Rs 7 Cr/ MW and Rs 12 Cr/ MW respectively, with the CUF of 19% for SPV and 23% for ST. O&M Expenses are considered at 1.4% of capital cost with 5.72 % escalation from second year for both (SPV and ST). Debt equity ratio has fixed at 70:30 and discount factor is about 10.07% for both.[/ezcol_1half]


The glimpse of the new tariff order is as follows –TNPresent total Installed Capacity of Solar power in Tamil Nadu is about 109.26 MW (as on 31/7/2014), which is much less according to its target of 3000 MW by 2015. This new solar tariff order can help the state government to achieve the target and will give an acceleration to the Tamil Nadu solar energy development.


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