Executive Summary:
This document outlines the Indian government's initiatives to promote solar energy, particularly in response to questions regarding solar projects in Tamil Nadu. It details the steps taken to increase solar energy generation nationwide, including bidding trajectories, incentives, and various schemes. While no specific solar parks are sanctioned in Tamil Nadu under the Solar Parks scheme, the state benefits from several national solar energy promotion programs.
Key Points / Main Content:
National Solar Energy Promotion Steps:
* Bidding Trajectory: MNRE has issued a bidding trajectory for 50 GW/annum RE power procurement by REIAs from FY 2023-24 to FY 2027-28.
* Foreign Investment: FDI up to 100% is permitted under the automatic route.
* Transmission Charges Waiver: ISTS charges are waived for interstate sale of solar and wind power for projects commissioned by June 30, 2025, and for Green Hydrogen Projects until December 2030.
* Renewable Consumption Obligation (RCO): RPO followed by RCO trajectory has been notified until 2029-30, with penalties for non-compliance for designated consumers under the Energy Conservation Act 2001.
* Bidding Guidelines: Standard bidding guidelines for tariff-based competitive bidding for grid-connected solar, wind, hybrid, and FDRE projects have been issued.
* Schemes Launched: PMKUSUM, PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme for Tribal and PVTG Habitations/Villages under PM JANMAN and DA JGUA have been launched.
* Solar Parks Scheme: Scheme for setting up Solar Parks and Ultra Mega Solar Power projects is being implemented to provide land and transmission for large-scale RE projects.
* Green Energy Corridor Scheme: Funds the laying of new transmission lines and creation of new substation capacity.
* Net Metering: Electricity Rights of Consumers Rules, 2020 allows net metering up to 500 kW or the sanctioned load, whichever is lower.
* Standard Labelling: SL programs have been launched for Solar PV modules and Grid-connected Solar Inverters.
* Transmission Plan: A transmission plan has been prepared until 2030 to augment transmission infrastructure.
* Late Payment Surcharge Rules: Electricity Late Payment Surcharge rules have been notified.
* Green Energy Open Access: Electricity Promoting Renewable Energy Through Green Energy Open Access Rules, 2022, allows open access to consumers with a contract demand of 100 kW or more.
* Green Term Ahead Market: GTAM has been launched to facilitate the sale of Renewable Energy Power through exchanges.
* Letter of Credit: Power dispatch against Letter of Credit (LC) or advance payment to ensure timely payment to RE generators.
Operational Schemes Promoting Solar Energy:
* Solar Parks and Ultra Mega Solar Power Projects: Aims to set up 40,000 MW capacity with developed infrastructure.
* PM-Surya Ghar: Muft Bijli Yojana: Aims to install rooftop solar and provide free electricity up to 300 units monthly for one crore households; 41,978 households in Tamil Nadu have benefitted so far.
* Production Linked Incentive Scheme: National Programme on High Efficiency Solar PV Modules for achieving GW-scale manufacturing capacity.
* PMKUSUM Scheme: Supports decentralized solar plants, solar pumps, and solarization of agriculture pumps; Tamil Nadu has allocations under Components A, B, and CIPS, with some installations reported under A and B.
* CPSU Scheme Phase-II: Supports 12,000 MW grid-connected solar projects by government producers using domestically manufactured cells and modules; NTPC and NLC India have commissioned projects in Tamil Nadu.
* New Solar Power Scheme for Tribal and PVTG Habitations/Villages: Provides off-grid solar lighting where grid electricity is not feasible.
Impact Analysis
Ministry of New and Renewable Energy (MNRE):
* Impact: Responsible for implementing and overseeing the various schemes and policies related to solar energy development.
* Action Required: Continue to monitor and adjust policies and schemes to meet renewable energy targets.
Renewable Energy Implementing Agencies (REIAs):
* Impact: Responsible for issuing RE power procurement bids, aiding in achieving the 50GW/annum target.
* Action Required: Fulfill the bidding trajectory mandates and facilitate the procurement of renewable energy.
Solar Power Developers:
* Impact: Benefit from the schemes and incentives to set up solar power projects.
* Action Required: Participate in bidding processes and utilize available schemes to develop solar projects.
Consumers (including those in Tamil Nadu):
* Impact: Can benefit from reduced electricity costs through schemes like PM-Surya Ghar and improved access to green energy through open access rules.
* Action Required: Explore and utilize available schemes to adopt solar energy solutions.
Farmers:
* Impact: Benefit from PMKUSUM scheme through decentralized solar plants and solar pumps.
* Action Required: Participate in the PMKUSUM scheme to install solar pumps and plants.
Tamil Nadu State Government and DISCOMs:
* Impact: Required to facilitate the implementation of national schemes and integrate solar power into the state's energy mix.
* Action Required: Coordinate with MNRE and other stakeholders to implement solar energy projects and ensure grid stability.
Key Entities Referenced
Tamil Nadu: A state in southern India, the primary focus of the policy document regarding solar energy initiatives.
Ministry of New and Renewable Energy (MNRE): The Indian government ministry responsible for new and renewable energy.
Solar Parks and UltraMega Solar Power Projects: A government scheme to develop infrastructure for large-scale solar power generation.
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PMKUSUM): A scheme focused on solarizing agriculture, including setting up decentralized solar plants and solar pumps.
PM Surya Ghar Muft Bijli Yojana: A scheme for installing rooftop solar and providing free electricity up to 300 units every month.
Renewable Purchase Obligation (RPO): An obligation to purchase a certain percentage of electricity from renewable sources.
Green Energy Corridor Scheme: A scheme to fund the laying of new transmission lines and creating new substation capacity for evacuation of renewable power.
Solar Energy Corporation of India Limited (SECI): A Renewable Energy Implementing Agency (REIAs).
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 4414
ANSWERED ON 20/08/2025
SOLAR PARKS IN TAMIL NADU
4414. SHRI NAVASKANI K
SHRI SELVAM G
SHRI C N ANNADURAI
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the total number of solar parks and ultra mega solar projects currently operational in the
State of Tamil Nadu along with their location, installed capacity, year of commissioning and
present status of power generation;
(b) whether the Government has set specific targets for solar power expansion in Tamil Nadu
during the next five to ten years and if so, the details thereof;
(c) the specific policy measures, fiscal incentives, infrastructure development projects and
institutional reforms being implemented or proposed by the Government to significantly
increase the share of solar power in India’s overall energy mix; and
(d) whether the Government has launched or proposes to launch special schemes or initiatives
in Tamil Nadu particularly in solar-rich districts to enhance the development of solar energy
infrastructure and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) There are no Solar Parks sanctioned in Tamil Nadu under the scheme for “Development of
Solar Parks and Ultra-Mega Solar Power Projects”.
(b) State-wise targets for solar capacity installation are not set by the Union Government.
(c) The Government has taken various progressive steps to set up solar power plants in the
country, the details of which are mentioned at Annexure-I.
(d) The Government is implementing various schemes to promote solar energy in the country
including Tamil Nadu. The list of operational schemes is given at Annexure-II.
*****ANNEXURE-I REFFERED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION
NO. 4414 FOR 20.08.2025
Steps Taken to increase Solar Energy Generation in the Country
• Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of RE power
procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies (REIAs) [REIAs:
Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited, SJVN Limited] from
FY 2023-24 to FY 2027-28.
• Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
• Inter State Transmission System (ISTS) charges have been waived for inter-state sale of solar and wind
power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December
2030.
• To boost RE consumption, Renewable Purchase Obligation (RPO) followed by Renewable Consumption
Obligation (RCO) trajectory has been notified till 2029-30. The RCO which is applicable to all
designated consumers under the Energy Conservation Act 2001 will attract penalties on non-compliance.
RCO also includes specified quantum of consumption from Decentralized Renewable Energy sources.
• Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from
Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable RE (FDRE) projects have
been issued.
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM
Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar
Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri Janjati Adivasi Nyaya
Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya Gram Utkarsh Abhiyan (DA JGUA) have
been launched.
• Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being implemented to
provide land and transmission to RE developers for installation of RE projects at large scale.
• Laying of new transmission lines and creating new sub-station capacity has been funded under the Green
Energy Corridor Scheme for evacuation of renewable power.
• Electricity (Rights of Consumers) Rules, 2020 has been issued for net-metering up to five hundred
Kilowatt or up to the electrical sanctioned load, whichever is lower.
• Standard & Labelling (S&L) programs for Solar Photovoltaic modules and Grid-connected Solar
Inverters have been launched.
• To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been
prepared till 2030.
• “The Electricity (Late Payment Surcharge and related matters) Rules (LPS rules) have been notified.
• Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022, has been
notified on 06th June 2022 with objective of ensuring access to affordable, reliable, and sustainable green
energy for all. Green Energy Open Access is allowed to any consumer with contract demand of 100 kW
or above through single or multiple single connection aggregating Hundred kW or more located in same
electricity division of a distribution licensee.
• Green Term Ahead Market (GTAM) has been launched to facilitate sale of Renewable Energy Power
through exchanges.
• Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance
payment to ensure timely payment by distribution licensees to RE generators.ANNEXURE-II REFFERED TO IN REPLY TO PART (d) OF LOK SABHA
UNSTARRED QUESTION NO. 4414 FOR 20.08.2025
List of Operational Schemes to Promote Solar Energy
1. Schemes for Development of Solar Parks and Ultra-mega Solar Power Projects with a target
of setting up 40,000 MW capacity. Under the scheme, the infrastructure such as land, roads,
power evacuation system water facilities are developed with all statutory
clearances/approvals. Thus, the scheme helps expeditious development of utility-scale solar
projects in the country.
2. PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar and providing free electricity
up to 300 units every month for One Crore households. A total of 41,978 households have
been benefitted with installation of rooftop solar under the PM Surya Ghar Muft Bijli
Yojana in the state of Tamil Nadu so far.
3. Production Linked Incentive scheme ‘National Programme on High Efficiency Solar PV
Modules’ for achieving manufacturing capacity of Giga Watt (GW) scale in High Efficiency
Solar PV modules (Tranche- I & II).
4. PM-KUSUM Scheme for setting up decentralized solar or other renewable energy power
plants, installation of stand-alone solar agriculture pumps, and solarization of existing grid-
connected agriculture pumps, including feeder-level solarization. The scheme benefits not
only farmers but also the States and DISCOMs. The state of Tamil Nadu has been allocated
14 MW capacity under component-A, 5,187 solar pumps under Component-B and 5,000
pumps under Component-C(IPS). As on 31.07.2025, power plants of 3 MW capacity under
Component-A and 4,260 solar pumps under Component-B has been reported installed. No
installation has been reported under Component-C(IPS).
5. Central Public Sector Undertaking (CPSU) Scheme Phase-II (Government Producer
Scheme) for setting up 12,000 MW grid-connected Solar Photovoltaic (PV) Power Projects
by Government Producers, using domestically manufactured solar PV cells and modules,
with Viability Gap Funding (VGF) support, for self-use or use by Government/
Government entities, either directly or through Distribution Companies (DISCOMS).
Under CPSU Scheme Phase-II, NTPC Limited and NLC India Limited have commissioned
230 MW and 10 MW solar PV power projects respectively, in the state of Tamil Nadu.
6. New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan
Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha Janjatiya
Gram Utkarsh Abhiyan (DA JGUA) with a provision for providing off-grid Solar Lighting
where electricity supply through grid is not techno-economically feasible.