Networking charges for rooftop solar energy panels discourage investments, say industries

Industries in Coimbatore say networking charges for rooftop solar energy discourage investments. Tangedco collects Rs. 1/unit from HT consumers, while MSMEs recently got a 50% reduction. 6,000 MW of solar energy installed in TN, with 1,000 MW added yearly. MSMEs want nil charges for rooftop solar, but HT consumers have not received relief.

Networking charges collected from industries that install rooftop solar energy panels for captive use discourages investments, say industries in Coimbatore.

The Tamil Nadu Generation and Distribution Corporation (Tangedco) collects ₹1 a unit from High Tension (HT) consumers. Some of the High Tension consumers have gone to the court in this regard, says a textile mill owner in Coimbatore. 

The Tangedco was collecting ₹1.53 a unit from low tension industrial consumers. Following protests by the MSMEs, the government recently announced a 50% reduction in the charges for Micro, Small and Medium scale Enterprises (MSMEs). 

A.D. Thirumoorthy, energy consultant, says Tamil Nadu has almost 6,000 MW of installed solar energy capacity. Every year about 1,000 MW is added mainly because solar energy is cheaper for industries compared to grid power. Several industries that had invested in wind energy are now going in for solar energy, he said.

According to the president of Coimbatore District Small Industries Association V. Thirugnanam, the number of MSMEs that installed rooftop solar energy panels at present are less. However, when power cost is to be increased annually, the industries have to invest in renewable energy to be competitive. The government should encourage investments in solar energy rather than discouraging it with network charges. “That is why MSMEs are asking for nil charges for rooftop solar energy generation,” he said.

A HT consumer, who did not want to be named, said larger industries are thinking twice before investing in solar energy now. “An industry cannot go for high capacities when installing solar panels on the rooftop. Yet, these installations do give relief and the industries that consume all the energy generated do not have to pay the government. Those who export excess power can do so,” he says. The HT electricity consumers have represented the issue several times to the government but have not got any relief, he adds.