Corporation taps solar power to turn green, eyes Rs 4.32 crore annual savings

A senior Corporation official said that the project has got the green signal after receiving a subsidy from the Central Government’s Ministry of New and Renewable Energy (MNRE). “In the city, 662 buildings with a total capacity of 3,006 Kilowatts will be undertaken. We have received a Central subsidy of Rs 4 crores for this phase, which will mean a reduction of Rs 16,000 per kilowatt. The total cost of the project is estimated to be at Rs 22 crores,” added the official. The subsidy will be applicable on condition of on-time delivery. The tenders have been opened and the last date for submission is June 15.

This is not the first time that the Corporation is implementing renewable energy solutions in its buildings. “Since 2015, 60 Corporation buildings have solar panels installed at a total capacity of 175 kilowatts. This has resulted in a savings of more than Rs 10 lakhs until now,” said the official, adding that once installed in 662 buildings, the Corporation is hoping to save Rs 36 lakhs monthly.

Solar rooftop panels have become popular, thanks to the savings in electricity usage, resulting in power credits through Tangedco’s existing net metering system. However, Tangedco’s proposal to Tamil Nadu Electricity Regulatory Commission (TNERC) will severely reduce the economic benefits due to a change in the net metering system. While Tangedco’s current system involves no cash transaction instead of which power credits are generated, resulting in a reduction in the electricity bill, the proposed system will involve Tangedco paying half of the tender bid price for procuring solar energy from a private supplier. This will drastically reduce the savings generated. 

However, the senior official pointed out that Tangedco has agreed to consider the Corporation as a “special case”, allowing it to continue with the existing net metering system. “Tangedco has allowed us to use the power grid where the excess power generated will be routed back to the grid and the subsequent amount slashed from the monthly electricity bills. This net metering and wheeling system will continue, as Corporation has appealed for the status of a ‘special case’, providing immunity from policy changes,” added the official.