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Solar economics in Tamil Nadu depend on a handful of numbers that change every year — electricity tariffs, subsidy slabs, GST rates, net metering limits. Most explainers go stale within months of publishing. This page is different: it's a standing reference, dated and sourced, that we update as orders change. Bookmark it, cite it, link to it.
Last verified: September 22, 2026.
1. TANGEDCO Electricity Tariff (TNERC Orders)
| Order | Effective Date | Change |
|---|---|---|
| TNERC Order No. 6 of 2024 | 1 July 2024 | Introduced the current telescopic two-tier domestic slab structure |
| TNERC Order No. 6 of 2025 | 1 July 2025 | Revises commercial and industrial tariffs by approximately +3.16% for FY 2025-26. Domestic consumers are explicitly exempted — the state government compensates TANGEDCO for the revenue impact |
The 2025 order supersedes the 2024 order for the current financial year, but domestic (residential) consumers were explicitly exempted from this hike — the +3.16% increase applies to commercial and industrial categories only; the state government compensates TANGEDCO for the resulting revenue loss. Domestic telescopic slab rates from the 2024 order remain in effect. For exact commercial/industrial slab-wise rupee figures, always cross-check the official order on tnerc.gov.in — TNERC issues a fresh order roughly every July.
For the detailed slab breakdown and bill calculation methodology under the telescopic system, see our TANGEDCO EB tariff guide and understanding your EB bill — domestic figures there reflect the still-current 2024 order, since domestic rates were unaffected by the 2025 revision.
2. PM Surya Ghar Muft Bijli Yojana — Subsidy Slabs
| System Size | Central Subsidy |
|---|---|
| Up to 2 kW | Rs 30,000/kW |
| 2-3 kW (3rd kW) | Rs 18,000/kW |
| Above 3 kW (residential) | No additional subsidy beyond the 3 kW cap |
| Maximum central subsidy | Rs 78,000 (3 kW system) |
| Maximum combined subsidy in Tamil Nadu | ₹1,00,000 (₹78,000 central + ₹22,000 state, 3 kW and above — see section 2a) |
Scheme status (as of late 2025/early 2026): extended through FY 2026-27, targeting 1 crore households nationally. Roughly 26 lakh households had received subsidy disbursement, totaling approximately ₹14,771 crore, per government progress reporting around December 2025. No structural change to subsidy slab amounts has been announced as of this writing.
Full breakdown: PM Surya Ghar / ₹78,000 subsidy guide. The Tamil Nadu state top-up that stacks on these slabs is notified and covered in section 2a below — full analysis in our G.O. 102 state subsidy guide and our Tamil Nadu solar subsidy guide.
2a. Tamil Nadu State Rooftop Solar Subsidy — G.O. (Ms) No. 102 (19 September 2026)
Notified through G.O. (Ms) No. 102, Energy Department, Government of Tamil Nadu, dated 19 September 2026. This supersedes the "guidelines pending" status that followed the Budget announcement of 5 August 2026.
| System size | PM Surya Ghar (central) | Tamil Nadu top-up (G.O. 102) | Total subsidy |
|---|---|---|---|
| 1 kW | ₹30,000 | ₹5,000 | ₹35,000 |
| 2 kW | ₹60,000 | ₹10,000 | ₹70,000 |
| 3 kW and above | ₹78,000 | ₹22,000 | ₹1,00,000 |
The state top-up stacks on the central subsidy; it does not replace it. Like the central slabs, ₹22,000 is a ceiling, not a per-kW rate — a 5 kW or 10 kW residential system draws the same ₹1,00,000 as a 3 kW one.
Eligibility conditions under the G.O.:
| Condition | Rule |
|---|---|
| Consumer category | Residential only — domestic TANGEDCO service connection. Commercial, industrial and agricultural connections are excluded |
| System type | Grid-connected. Grid-connected hybrid systems qualify; off-grid systems do not |
| Vendor | Must be installed through an empanelled vendor |
| Portal registration date | Must have registered on the PM Surya Ghar portal on or after 05.08.2026 — no retrospective benefit |
| Applicant cap | First 1,00,000 applicants |
| Allocation | ₹50 crore; state target of 1 lakh homes by March 2027 |
| Disbursal | By TEDA via Direct Benefit Transfer, coordinated with TNGECL, after commissioning and inspection — separate from, and usually after, the central subsidy |
Because the top-up is reimbursed after commissioning, the buyer funds the gross installed cost up front and is paid back later. Size loans and cash flow against the gross cost, not the net.
Full analysis: Tamil Nadu State Solar Subsidy G.O. 102 — ₹22,000 extra, ₹1 lakh total. Background on the Budget announcement that preceded it: new Tamil Nadu rooftop solar subsidy 2026.
3. GST on Solar Systems
| Supply Type | GST Rate |
|---|---|
| Solar power generating system (turnkey, composite supply) | 5% |
| Individual components purchased separately | 12-18% depending on component |
Full detail, HSN codes, and worked cost examples: Solar GST rate explained.
4. Net Metering Rules
| Rule | Limit |
|---|---|
| Cumulative rooftop solar capacity per distribution transformer | Capped at 90% of local DT capacity |
| Exported units (settlement) | Capped at 90% of consumption per settlement period |
RESCO (third-party leasing) models exist for commercial and industrial customers but are not eligible for PM Surya Ghar subsidy, which is structured for direct-ownership residential systems.
Full explanation: Net metering vs net billing under TNERC 2026 and understanding net metering in Tamil Nadu.
5. Financing
| Option | Notes |
|---|---|
| SBI / public bank solar loans | Linked to PM Surya Ghar; see comparison guide |
| Private bank loans | Often faster disbursal, compare rates |
| Zero-down EMI options | Available through select vendor-bank partnerships |
Full comparison: SBI Surya Ghar vs private bank solar loans and solar EMI / zero down payment options.
6. End-of-Life & Compliance
| Item | Status |
|---|---|
| Solar e-waste classification | Covered under E-Waste (Management) Rules, 2022 |
| CPCB draft EPR guidelines for module storage/handling/transport | Issued June 2025; draft stage, storage mandate framework extends through FY 2034-35 |
| ALMM / DCR panel compliance | Mandatory for subsidy eligibility on most schemes |
Detail: Solar panel recycling & end-of-life rules and DCR panels and TANGEDCO subsidy eligibility.
Why We Maintain This Page
Tariff orders, subsidy slabs, and compliance rules in India's solar sector change at least annually, often without much notice outside official gazettes. Most blog content — ours included — gets written once and goes stale. This page is the exception: it exists specifically to be the single, current reference, re-verified whenever TNERC issues a new order or MNRE updates scheme parameters. If you're a journalist, researcher, or fellow solar company citing Tamil Nadu solar economics, this is the page to link to — it'll stay current longer than a dated news article will.
FAQ
What is the current TANGEDCO electricity tariff in Tamil Nadu?
TNERC Order No. 6 of 2025, effective 1 July 2025, is the current governing order. It revises commercial and industrial tariffs by approximately 3.16%, but domestic (residential) consumers were explicitly exempted from this hike — the 2024 order's domestic slab rates remain in effect. For exact commercial/industrial slab-wise figures, refer to the official order on tnerc.gov.in.
How much subsidy can I get under PM Surya Ghar in Tamil Nadu?
Up to Rs 78,000 from the Centre for a 3 kW residential rooftop system — Rs 30,000/kW for the first 2 kW and Rs 18,000 for the 3rd kW, with no additional central subsidy beyond 3 kW. On top of that, G.O. (Ms) No. 102 dated 19 September 2026 adds a Tamil Nadu state top-up of ₹5,000 (1 kW), ₹10,000 (2 kW) or ₹22,000 (3 kW and above), taking the combined maximum to ₹1,00,000 per household — subject to the eligibility conditions in section 2a.
Has the PM Surya Ghar subsidy amount changed in 2025 or 2026?
No structural change to the central subsidy slab amounts has been identified as of September 2026. The scheme has been extended through FY 2026-27 with a continuing national target of 1 crore households. The change for Tamil Nadu is a state-level top-up, announced on 5 August 2026 and notified through G.O. (Ms) No. 102 on 19 September 2026 — not a revision of the central slabs. See section 2a.
What GST rate applies to solar installations in Tamil Nadu?
5% on turnkey solar power generating systems purchased as a composite supply from a single vendor. Components purchased separately can attract 12-18% GST depending on the component — see our detailed GST guide for the full breakdown.
Sources & Verification
Disclaimer: Subsidy amounts and eligibility can change, and the state top-up is limited to the first 1,00,000 applicants — confirm current status on pmsuryaghar.gov.in and with TEDA/TANGEDCO before purchase.
This page aggregates publicly available regulatory information from TNERC (tnerc.gov.in), MNRE/pmsuryaghar.gov.in, CPCB, and GST Council notifications. We re-verify and update this page when a new tariff order, subsidy revision, or compliance rule is issued. If you spot a figure that's changed, contact us and we'll correct it.
Last verified: September 22, 2026.
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