Rooftop solar gets fresh push: Tamil Nadu's ₹22,000 top-up takes total benefit to ₹1 lakh
The Tamil Nadu government's announcement of an additional incentive of ₹22,000 for domestic consumers installing rooftop solar panels is expected to accelerate the adoption of renewable energy in the state. This top-up comes on top of the central subsidy provided under the PM Surya Ghar: Muft Bijli Yojana, which offers up to ₹78,000 for systems above 3 kW capacity. Combined, a beneficiary can now avail a total benefit of ₹1 lakh.
The announcement was made during the recent Tamil Nadu Budget session, drawing cautious optimism from renewable energy advocates. While they await clearer modalities of the scheme, stakeholders have begun offering suggestions to maximise its impact.
P. Ashok Kumar, founder-president of the Tamil Nadu Solar Energy Developers Association (TNSEDA), has written to the State Government recommending that the incentive be tied to the adoption of energy storage devices such as batteries and inverters. “Instead of giving a direct benefit of ₹22,000, the State Government should insist consumers use energy storage devices. My suggestion is to add energy storage to the incentive and train people to use solar power 24x7 even in peak hours to reduce the dependence on Tamil Nadu Electricity Board,” he said.
Currently, Tamil Nadu follows net metering, where excess solar power generated by a consumer is fed into the grid, allowing the consumer to draw equivalent power later instead of receiving cash payment. TNSEDA's representation underscores a growing recognition that renewable energy alone cannot meet rising demand. Batteries are seen as critical for grid stability and performance, enabling better integration of renewables and allowing energy generated during peak sunlight hours to be stored for later use.
Ashok Kumar believes such a nudge would also reduce losses incurred by the state electricity utility. “The cost of purchasing peak hour power is high, so the extra incentive should nudge consumers to use solar during peak hours,” he explained. Many states, including Uttar Pradesh and Gujarat, which lead in rooftop solar adoption, already offer subsidies.
Jaideep Saraswat, Associate Director for Clean Power, Electric Mobility and Emerging Technologies at the Vasudha Foundation, a non-profit think tank, stressed that subsidies only translate into real adoption when all elements align. “This begins with raising consumer awareness on rooftop solar systems and informing consumers about the state subsidy, which improves the payback period for them. Concurrently, vendor capacity must be built to ensure optimised system deployment. Finally, the capacity of all stakeholders needs to be built and everyone must be aligned on increasing rooftop deployment,” he said.
Other recommendations from industry and policy experts include speeding up the approval process and setting targets for banks and financial institutions to expand access to loans for solar installations.
In a related development, the solar retail sector is moving towards experiential marketing to build consumer confidence. In June, VeSat Solar Energy Systems opened a new solar experience centre at Shastri Nagar in Adyar, Chennai. The building is powered entirely by solar energy, including its lights, fans, three air conditioners, computers, and television. Visitors can see how solar power can be harnessed across products ranging from water heaters to power systems.
L.R. Venkatesh, managing director of VeSat Solar, noted that giving prospective buyers a walk-through is not merely a marketing tool but enhances trust and confidence in solar energy. The combined effect of financial incentives and hands-on exposure could help more households make the switch to clean, affordable power.
