At a time when the popularity of solar power as a cheap source of energy is growing, the Tamil Nadu state-owned power utility has come out with a proposal that will reduce the return on investment for citizens installing rooftop solar plants. It has also proposed to add a tax on the power generated.

Currently, units of electricity generated by roof-top solar plants are subtracted from the consumer’s bi-monthly use of power from EB source before billing. Now, Tamil Nadu Generation and Distribution Corporation (Tangedco) proposes to fix the rate for solar power generated by roof-top plants at 50% of the lowest price paid to solar power firms. This translates into a saving of just Rs 2 per unit for domestic consumers with solar rooftop plants. In addition, Tangedco seeks to allow residents to install a solar plant of a capacity only 50 % of the contracted demand.

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