The Ministry of New and Renewable Energy (MNRE) will provide central finance assistance (CFA) at the rate of Rs.22.50 (~$0.3371)/W to install grid-connected solar rooftop power projects. This will amount to a subsidy of 30 percent on the benchmark cost of Rs.75 (~$1.10)/W.

The subsidy will apply to the installation of 100 MW of grid-connected solar rooftop projects in Tamil Nadu under the MNRE’s “Grid-Connected Rooftop and Small Solar Power Projects Program.” The developers can avail the benefits under the program on a first come, first serve basis.

In September this year, the government of Tamil Nadu approved Rs.6.75 billion (~$100.72 million) to subsidize solar rooftop projects that will generate 300 MW.

The MNRE has established a target of 3,500 MW of rooftop solar in Tamil Nadu by the year 2022. Rooftop solar adoption in India has been slow with approximately 600 MW installed so far in India, according to Mercom India Project Tracker.

Image credit: By Narendra Modi [CC BY-SA 2.0 (], via Wikimedia Commons



Raj Prabhu Raj is a recognized thought leader in clean energy markets where his work has influenced policies worldwide. He has a deep understanding of regulatory policy and clean energy markets and his market and opinion pieces are regularly published on both and other leading publications globally. Raj is also a regular speaker and presenter on clean energy policy and finance topics at conferences worldwide. Raj attended the KLE College of Science in Bangalore, India for physics and chemistry, and holds a Bachelor of Science Degree in Hotel and Institutional Management from Johnson and Wales University, Rhode Island. More articles from Raj Prabhu.