Tangedco wants solar power tariff capped at 50 per cent

Presently, total electricity consumed is calculated based on a concept called ‘netting on units’, in which the bill is calculated on the basis of the total units consumed, from Tangedco, minus the number of units produced via solar energy.

“Huge cost is involved in generating one unit of power through conventional sources such as coal. On the other hand, solar energy production is cheap and so people can afford to export it at relatively low cost,” said Vikram Kapur, CMD, Tangedco, explaining the rationale behind the pricing.

“In terms of solar energy, installation is the major expense while production is cheap. So, even if people get 50 per cent of the cost, they can get the returns of the total installed cost in few years,” said Vikram Kapur. He added that solar energy production has become relatively cheaper, compared to the previous years. “In 2012, 1 MW production of solar energy cost Rs 8 crore but now, Rs 3.5 crore is sufficient for the same capacity,” said Vikram Kapur. 

For a rational calculation of the bill, Tangedco wants to do away with the ‘netting on units’ concept to a more practical policy. “We demand that the bill be calculated based on the concept called ‘netting on values’, in which the production costs will be taken into account and the cost of the solar units will be fixed low when compared to power produced from conventional sources,” said Vikram Kapur. 

He further said if people continue to use net-metering, Tangedco will incur losses and to incentivise corporation, there should be support in the form of reduced solar energy tariff that it buys from households. “We hope in the new Solar Policy prepared by the State government, the concerns of Tangedco would be addressed and ‘netting on values’ method would be adopted,” he said.