Tamil Nadu Lowers Benchmark Tariff

• The Tamil Nadu Electricity Regulatory Commission (TNERC) has cut down the benchmark tariff for solar PV projects to 4.50 INR ($0.069) per kWh
• Previously this tariff was fixed at 5.10 INR ($0.079) per kWh
• The new order will be effective from April 1, 2017 and its control period will be effective for one year, the tariff period is 25 years

After Karnataka, it is now Tamil Nadu's turn to bring down its benchmark tariff for solar PV projects in the state. The Tamil Nadu Electricity Regulatory Commission (TNERC) has brought it down 12% to 4.50 ($0.069) per kWh, from the earlier 5.10 INR ($0.079) per kWh.

A few days back, the Karnataka Electricity Regulatory Commission (KERC) brought down the solar power tariff to 4.36 INR ($0.064) per kWh for 2017-18 (see Karnataka Lowers PV Benchmark Tariff).

The Comprehensive Tariff Order on Solar Power by the TNERC is effective from April 1, 2017 to all solar power plants commissioned during the control period of the order. The control period of the order is one year, the tariff period is 25 years. The revised price is the tariff at which distribution licensees will now buy solar power from solar power generators.

The distribution licensee will have to pay the solar power generator within 60 days of the receipt of the bill. Delayed payment will attract interest at a rate of 1% per month. "However, Tamil Nadu is generally considered the riskiest for solar projects due to late-payment and curtailment issues," said Indian consultancy Mercom Capital Group.