Empanelment Tender for 12 MW of Residential Rooftop Solar Systems in Tamil Nadu

Tamil Nadu Energy Development Agency (TEDA) has issued a notice inviting tender (NIT) to empanel vendors to install 12 MW of grid-connected residential rooftop solar systems in Tamil Nadu.

The implementation is part of Phase II of the Ministry of New and Renewable Energy’s (MNRE) Grid-Connected Rooftop Solar Program.

The project must be commissioned within six months from the issue of the allocation letter. Empanelled bidders must provide five years of operation and maintenance (O&M) services.

The last day to submit the bids is May 11, 2022. The bids will be opened on the same day.


Bidders must pay a non-refundable tender processing fee of ₹5,000 (~$65) and furnish an earnest money deposit of ₹450 (~$6)/kW of quoted capacity.

The empanelled bidders must also furnish a performance bank guarantee (PBG) calculated at 3% of the contract value per allocated capacity multiplied by the discovered cost within 30 days of the issue of the work order.

The empanelled bidders must also furnish an O&M PBG calculated at 3% of the contract value per allocated capacity multiplied by the discovered cost within 30 days from the end of the empanelment period and be valid for five years and three months. If the empanelled vendor cannot submit the O&M PBG, the initial PBG for installation and commission will be encashed.

Bidders must have commissioned grid-connected rooftop solar projects having an aggregate capacity of not less than 2,000 kW during the last three financial years ending 2020-21. Local micro, small and medium enterprises (MSME) bidders registered under the MSME Development Act, 2006 in Tamil Nadu are exempted from the technical eligibility requirements.

Bidders must have an average annual turnover of ₹50 million (~$654,656) in the last three financial years ending 2020-21. Alternatively, bidders can participate in the tender if their net worth is ₹10 million (~$130,934) or above in the last three financial years. MSME bidders are exempted from the financial eligibility requirements.

The project is divided into Parts A, B, C, and D. Under Part A, systems of 1 kW to 3 kW are to be installed. Bidders can apply for a minimum aggregate capacity of 50 kW and a maximum of 1.5 MW. The total capacity to be installed under part A is 5.8 MW. Under Part B, systems above 3 kW up to 10 kW each are to be installed. Bidders can apply for a minimum aggregate capacity of 50 kW and a maximum of 1 MW. The total capacity to be installed under Part B is 2.5 MW.

Under Part C, systems of above 10 kW up to 100 kW each are to be installed. Bidders can apply for a minimum aggregate capacity of 100 kW and a maximum of 750 kW. The total capacity to be installed under Part C is 1.5 MW. Under Part D, systems of above 100 kW up to 500 kW capacity are to be installed. Bidders can apply for a minimum aggregate capacity of 100 kW and a maximum of 750 kW. The total capacity for Part D is 1 MW.

Details for Empanelment to Install 12 MW of Residential Rooftop Solar Systems

The MNRE will provide central financial assistance (CFA) up to 40 % for rooftop solar systems up to 3 kW capacity. For rooftop systems of capacity above 3 kW and up to 10 kW, the CFA of 40% would be applicable only for the first 3 kW capacity, and for capacity above 3 kW, the CFA would be limited to 20%.

For group housing societies or residential welfare associations, CFA will be limited to 20% for installing the rooftop system to supply power to common facilities. The capacity eligible for CFA will be limited to 10 kW per house.

In November 2021, The Tamil Nadu Electricity Regulatory Commission had set a generic tariff of ₹3.61 (~$0.049)/kWh for grid-connected solar power projects for capacity ranging from 1kW to 10 kW, ₹3.37 (~$0.045)/kWh for 11 kW-150 kW, and ₹3.10 (~$0.042)/kWh for 151 kW-999 kW.

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