Renewable energy producers seek policy changes from TN government

Solar power producers are seeking changes on several key policy issues to boost renewable energy generation in Tamil Nadu. Grid connection charges, deemed demand charges and approvals for solar panel installation are some of the issues to watch out for, say investors in the solar energy sector.

Some projects that were approved a few months ago and were almost ready for installation have remained dormant. Therefore, part of the investors moved the court and got a stay on the order to keep the approval for the commissioning of the project. The solution to the problem was initiated after it was discussed with the minister concerned. Projects are currently being reviewed and approved on a case-by-case basis, according to sources.

The solar power project goes through seven phases, from land acquisition to commissioning, and takes about three months. The whole process should be seamless. Another major disincentive for solar investment is grid connection fees for rooftop solar generators. The charges should be removed, they added.

On deemed demand charges, investors pointed out that it was a long-pending issue that had been brought before the Supreme Court and the Electricity Appellate Tribunal. The government should provide relief to investors in the renewable energy sector. This will also encourage more companies to invest in renewable energy, they said.

The government should also support hybrid renewable energy projects. This will help investors save on land investment and approval costs, they added.

Published – 11 Jun 2026 20:45 IST