The earlier policy, which was unveiled in 2012, had set a target of 3,000 MW of installed capacity by 2015. But the state managed to achieve a little over 2,000 MW as of 31 March 2018. This capacity was about 10 percent of the country’s installed capacity in the solar sector.

The new policy was released by Chief Minister of Tamil Nadu Edappadi K Palaniswami on 4 February 2019. The policy hopes to create a framework that will help accelerate development of solar installations in the state, promoting both utility category and consumer category solar energy generation through various enabling mechanisms.

About 40 percent of the target (9,000 MW) will be earmarked for consumer category solar energy systems. It will be applicable to projects and installations relating to solar photovoltaic (solar PV) and solar thermal energy and both utility and consumer category systems. Under the new policy that will be effective from 4 February 2019, consumer category solar power will be exempted from electricity tax for two years.

Incentives will also be provided to promote solar energy in the agriculture sector. The state government will also promote the manufacture of solar power components including cells, inverters, batteries, etc.

The Tamil Nadu Energy Development Agency (TEDA) will facilitate and expedite access to various concessions and incentives provided by the Union Ministry of New and Renewable Energy.